5 Considerations for Adding the Right Employee Benefits

In today’s competitive job market, offering the right employee benefits isn’t just a box to check; it’s how employers show they care for their people. The benefits you provide can make the difference between attracting top talent, keeping your employees engaged, and building a workplace where everyone feels valued.

Navigating the world of benefits can be tricky, and it’s easy to feel overwhelmed by choices and obligations. While many employers have already established their benefits programs for the coming year and open enrollment is at hand, this is a good time to make sure your package is delivering the message you want it to, and apply these five considerations in the coming year to close potential gaps and improve value.

1. Shore up core employee benefits

The most valuable and impactful benefits you provide are related to healthcare and disability. These are the core benefits that matter when life throws a curveball, ensuring your team can keep working, pay their bills, and avoid the financial stress that often comes with unexpected medical expenses.

Ensuring your healthcare pricing is competitive and affordable for your average worker is often the best place to start. Adequate healthcare coverage is a basic need for most workers, directly impacting both recruiting and retention.

Next, consider disability insurance. This benefit provides a crucial safety net if an employee gets sick and can’t work, helping them cover their bills. While it may not seem as appealing, especially to younger workers who might feel invincible, its absence can negatively impact retention. If you have extra budget to invest, shoring up this benefit is a wise move.

Regardless of any changes, we suggest featuring disability insurance more prominently in your benefits package, even on a voluntary basis, and promoting it more assertively.

2. Consider culture and demographics

Once core benefits are established, new benefit ideas should be evaluated based on current workforce demographics and the target recruiting population. Any new benefit offerings must align with their needs.

For example, a student loan repayment plan can be valuable if you employ or are recruiting recent college graduates. But for others who are interested in continued education opportunities, tuition reimbursement may hold more value for both the individual and the organization.

Instead of guessing what benefits your employees want, it’s best to ask them directly. While this might feel risky, we believe employees can understand that having a voice doesn’t always mean having a vote. Explain upfront and when reporting the results that you will consider all input, but must make final decisions based on the practicality and cost of the potential options.

3. Voluntary employee benefits

Voluntary employee benefits can provide significant value by addressing personal risks and offering financial security. Options such as identity theft and legal insurance help protect employees from unexpected issues at a low cost. Pet insurance is another benefit that can appeal to employees with pets, offering support for their extended family.

Two particularly valuable options are accident insurance and critical illness insurance. Accident insurance provides financial assistance for out-of-pocket expenses such as deductibles, co-pays, or lost wages after minor injuries, ensuring employees can recover without unnecessary financial strain. Critical illness insurance, on the other hand, offers a lump-sum payment in the event of serious health issues, such as cancer or heart attacks.

These benefits serve as essential safety nets, extending the reach of core benefits while reducing employees’ financial stress during challenging times.

4. Offering too many options can be overwhelming

A mistake employers can make is offering too many voluntary benefits. While this may seem advantageous, it can lead to decision fatigue among employees. When presented with too many options, individuals may struggle to process the information, potentially resulting in them forgoing the benefits altogether. Understanding company demographics and soliciting employee input can help employers identify and offer the most valued benefits, thereby avoiding this issue.

5. Benefits aren’t everything.

A strong culture is essential, as even comprehensive employee benefits cannot compensate for a weak or demeaning work environment. Evaluating leadership practices, particularly managers’ effectiveness in recognizing and reinforcing employee value, is crucial. The primary driver of employee retention is the validation of their identity and contributions. Organizations should recognize employees as internal stakeholders and address their fundamental needs.

Final Thoughts

Through combining comprehensive benefit offerings with a supportive work environment, organizations can cultivate a sense of belonging and purpose among their staff. Investing and addressing their needs will ultimately drive engagement, loyalty, and long-term success for both the employees and the organization.

Feeling overwhelmed by benefit options? You don’t have to be. The Miller Group’s advisors are ready to build a benefits strategy that supports you and your team. Reach out to a trusted partner today and make a lasting impact