Designing an Exceptional Employee Benefits Program: A Step-by-Step Guide

Many employers assume that their employee's primary concern is their paycheck. However, that's not quite true. A recent study found that workers prioritize the benefits they receive. In fact, workers are now 25% more likely to declare a company's employee benefits program as one of the prime reasons for choosing an employer than in 2012.

But designing a stellar benefits package your employees will adore takes some work. This article will help you create a winning employee benefits program in eight simple steps.

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How to Create a Successful Employee Benefits Program

Your employee benefits program is integral to your company's compensation package. It provides your team members with access to crucial items that enhance their well-being, such as health care, vacation time, and retirement options. In return, you get to boost your recruitment efforts and improve organizational success — a win-win situation.

However, creating an employee benefits program isn't always straightforward. Here are eight steps you can follow to simplify the process and enhance your chances of success.

Step 1: Analyzing Employee Needs and Preferences

Survey your workers to ensure you deliver your employees the benefits they want. Ask them what benefits they would most like to see in your company. Employee feedback helps ensure you select benefits that align with your workers' interests and avoid those that don't.

Remember that everyone's needs are different. For instance, employees with children may gain from childcare assistance. However, team members without kids won't. You'll need to consider your workforce demographics carefully as you choose benefits.

Step 2: Researching Industry Trends and Best Practices

Attracting top-tier talent is likely one of your recruiting goals — and also that of your competitors. To ensure your benefits program appeals to job-seekers, stay abreast of current benefits offerings in your industry and location. Look at what your rivals provide, and determine whether your program is competitive with theirs.

Keep an eye on industry pioneers known for their benefits program. For example, Cisco is known for providing employees with 40 paid hours of annual leave they can use for volunteering. Apple offers team members hefty discounts on their products. Industry stars may give you some ideas for your company's program.

Step 3: Customizing Benefits to Reflect Company Culture

You can use your organization's employee benefits program to highlight your company's values and identity. Aligning benefits with your unique culture helps to personalize your offerings and differentiate them from other businesses.

To do so, review your company's mission and values, and determine what benefits best coordinate with them. For instance, if your business values innovation and knowledge, you might provide educational benefits encouraging employees to enhance their skills.

Step 4: Balancing Cost-Efficiency and Value

Most companies don't have unlimited funding for employee benefits. While you want to provide team members with the best you can, you'll need to maximize your resources with your available budget.

Consider your budget's impact on factors critical to your business, like employee retention and productivity. Benefits that align with your company goals provide a higher Return on Investment (ROI) and add more value to the organization.

Step 5: Crafting a Comprehensive Benefits Package

A well-crafted, comprehensive employee benefits program includes health, financial, and wellness benefits. Using a mix of the three types provides a holistic combination that touches everyone's needs:

• Health benefits promote employees' physical and mental health. Examples include medical, dental, vision, and disability insurance.
• Financial benefits aim to help your team members build wealth over their lifetime. They typically include access to retirement plans and stock options.
• Wellness benefits focus on professional development and work-life balance. Two types of wellness benefits are tuition reimbursement and vacation time.

Step 6: Developing a Communication and Rollout Strategy

After establishing your new employee benefits package, communicate your company's offerings to your workers. Consider holding a company-wide meeting to discuss available benefits and answer employee questions. You should also provide them with documents describing the key points of the benefits available and how to enroll.

Keep in mind that employees expect easy benefits sign-up. They don't want to spend hours navigating a clunky website or filling out handwritten forms. Consider integrating an app or online portal that simplifies the benefits onboarding process.

Step 7: Measuring Program Success and Employee Satisfaction

Once you implement a new employee benefits program, you'll want to assess its performance. Establish key performance indicators (KPIs) to monitor sign-ups and evaluate ROI.

KPIs that are relatively easy to determine include participation rates and fees per participant. If you are on target in your benefits selection, your participation rates will be high, and the costs will align with your budget expectations.

A few months after introducing your new benefits plan, circulate a survey among your team members and ask for feedback. Inquire about their experience with your benefits and whether they have suggestions for improvement. Note any negative responses and see if you can address them. For instance, if employees complain their medical insurance premiums are too high, you could try negotiating with your provider for a lower rate.

Continuous assessment of your benefits program is essential. Over time, your employee's needs will change, and the demographics of your workforce may, too. It's good practice to survey your employees annually to determine if changes to your program are necessary.

Step 8: Adapting to Change and Evolution

It's not uncommon for companies to experience significant shifts in their workforce's benefits expectations. For example, if your business opens a branch in a different country, you must update your benefits to reflect local needs.

Remain agile in your policies to quickly add new benefits if necessary. Ensure that your benefits package suits the needs of employees from diverse backgrounds. You may need to expand your offerings to cater to their needs, especially as your organization grows.

It's also good practice to stay on top of employee benefits trends. Employers regularly update their offerings, and being mindful of competitors' changes can alert you to new benefits your employees will appreciate.

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Case Studies: Real-Life Examples of Stellar Benefits Program Design

The tech industry is well-known for offering attractive benefits that employees love. One particular stand-out benefits program is available through Google. As a Googler, you can access onsite wellness centers, student loan reimbursement, and one-on-one financial coaching. Other superior benefits include four weeks to work from anywhere and fertility support.

While you may not be able to match Google's extensive benefits, you can draw upon their strategy to create a holistic package your employees will value. Take a page from Google, and provide perks that touch on multiple needs, including wellness, flexibility, and financial well-being.

Empower Your Workforce With Transformative Employee Benefits Programs

Employee benefits programs are more than compliments to your worker's paycheck. They can enhance your employee's well-being and improve productivity and happiness in your office.

Curating an exclusive benefits package that stands out from other employers will positively affect your company. Use our tips for guidance, or contact us to learn how we can help you design a benefits package personalized for your organization.