As a small business owner, you know recruiting and retaining great employees is essential. You also know employee benefits are an important part of your employees’ total compensation. This guide will outline the steps of how to create a group benefits program that attracts quality employees and helps keep them at your company for the long term.
1. What is a group benefits program, and why should you launch one?
Group benefits programs are insurance or health care benefits provided by employers for employees, spouses, domestic partners, and their dependents. The benefits are typically paid for by the employer, sometimes with matching contributions from employees. Group benefits programs are generally provided by large companies. Most employees are initially drawn to your company because of the benefits they receive.
Here are 4 things you can do to help you create a successful group benefits program at your company:
These are typically health plans that cover a group of family members or certain members of a household. These may include health maintenance, dental, vision, and life insurance. Individually, each benefit may be affordable and come with reasonable costs. However, you also have the opportunity to add additional benefits if your company offers more generous or cost-sharing benefits.
Most group benefits programs require you to actively seek out high-quality candidates who will also join your business. Recruit qualified individuals early in the hiring process to ensure you have a well-rounded applicant pool that can fill key positions. Consider adopting open recruitment by having your business contact potential candidates directly by emailing or calling them. When recruiting, you should also clarify the role and responsibilities of each employee on your team and the application process.
Employee Loyalty Program (ELP)
An ELP is an insurance or health insurance plan that benefits an entire team. This group benefits plan typically requires that the cost of coverage be shared by every team member and their dependents. ELP members are eligible for a range of benefits that they build their own individual benefits package from.
Employees are eligible for various take-home bonuses and financial incentives. These are salary, bonus, profit-sharing, or other awards that are intended to incentivize employees to continue working at the company. These incentives may come in the form of cash, gift cards, stock awards, or other incentives. You can decide the type and amount of incentives that are given based on your business goals.
2. How is a group benefits program different from an individual benefits program?
Individual benefits programs focus on the employee. They often include health and wellness benefits such as dental, vision, and life insurance. They also include things that support an employee’s daily life such as child care, commuter benefits, and tuition assistance. Group benefits programs focus on the employee and their family. These can include a 401(k), pension plan, or company-provided health insurance.
Your job as a small business owner is to explain what’s been offered to your employees in a way that makes sense and to make it affordable.
3. If you are planning to launch a group benefits program, what’s the first step?
If you are planning to launch a group benefits program, the first step is to determine the type of coverage you want to offer. The second step is to determine the target audience of your group benefits program. The third step is to decide which benefits you want to offer through your group benefits program. Benefit design is one of the most important decisions a small business owner has to make when developing a group benefits program. For this reason, it will help enormously to have a strategy in place.
Benefit design is all about knowing your audience and imagining how the program will be received. The uniqueness of your program and how it operates will help you determine the most appropriate benefit design for your program. Let’s briefly go over the general benefits that you will want to discuss when developing your benefits program design with your target audience.
Paid time off (PTO):
This is a type of paid time off that you can offer your employees. The employee doesn’t need to take any time off. It is paid to them on an accrued schedule based on a formula you determine. You plan to pay each employee for 100 hours per year.
You plan to pay each of your employees for any paid holiday days they receive. For example, if your employees take an annual vacation of three days and receive one paid holiday each, then you would pay them for one paid holiday per year for a total of seven days during the year.
This type of plan provides employees with a defined benefit, defined contribution component. It can be customized to the employee.
Sick Leave With Pay:
While you don’t need to provide this benefit if your business is part of a health insurance plan. An employer that does provide health insurance coverage can offer a sick leave with pay benefit.
4. What does it take to design a competitive group benefits package?
Designing a competitive group benefits package can seem like a daunting task. The first step is to understand the market. You’ll want to look at the plans offered by your competitors to see what’s offered and what’s available for employees. Next, understand the intent of your offer before going into detail on benefits. You’re going to want to walk your group through your benefits concept and determine what’s working and what’s not. Pay special attention to things like competitive pricing.
Benefits are a universal language for motivating employees, but you know the difference between the benefits offered and the customer benefits that employees have.
5. How do you sell your group benefits package to employees during the hiring process?
When it comes to selling your group benefits package to employees during the hiring process, it’s important to understand that your benefits package is a tool for attracting and retaining talent. You should be marketing your benefits package to new hires as a way to show them that you’re invested in them and their success.
Employee referral programs are an easy way to increase your company’s reputation and attract and retain talented employees. When firms first introduce employee referral programs, there are several common types.
Referrals for profit
Some companies offer referral programs to influence the hiring decisions of their candidates. Typically, these get participants to refer 10 to 15 direct candidates to the company in return for compensation. Private sector companies usually pay a referral fee to their employees. Some companies offer hourly wages commensurate with experience.
Group benefits can seem daunting, but we hope this article has explained how easy it is to create a group benefits program. Also, we have discussed how important they are to hire and retain quality employees. If you follow the simple suggestions we have outlined in this article, you and your employees will have a happy working environment.
Want to learn more about setting up your group benefits plans and plans that fit your needs? Contact us today to set up a meeting.