2. Needs Assessment
Conduct a needs assessment to determine the best selection of benefits based on the wants and needs of your employees, your legal obligations, and the company’s overall strategy.
- Your own perception of employee benefits needs
- Your competitors’ benefits practices
- Tax laws and regulations
- Your employees’ perception of needed and/or desired benefits
If an existing benefit plan exists, consider reviewing the utilization of each benefit being provided. The frequency of which employees use a benefit is a great indicator of employee reliance on the benefit and may help you determine a way to reduce the cost of providing it. For insurance plans, the carrier will often provide this information to the registered employer.
Consider your workforce demographics in determining the ideal benefits plan. A younger workforce might value paid time off, while an older workforce might prefer retirement income plans. Surveying your employees can help reduce guesswork in this process and may improve your employees’ approval of the provided benefits.
You will also need to consider the legal obligations for offering benefits on both a federal and state level. For example:
- At a federal level, the Affordable Care Act requires employers with 50+ employees to provide affordable health insurance or pay a penalty.
- Every year, more states pass laws requiring employers to provide paid sick leave to their employees.
Your dedicated team of benefit pros will help ensure your employee benefits plan is in compliance with all state and federal requirements.