Setting Up Your Employee Benefits Program – Five Essential Steps
Starting an employee benefits program from scratch can be a pretty daunting task! We've broken it down into the five essential steps you need to take:
Determine your budget.
Decide which benefits you'll include in your program.
Analyze the total compensation your company offers.
Look into working with a benefits company.
Finally, complete your benefits program setup and roll it out!
Determine Your Budget
The first thing you need to do when setting up your employee benefits program is to determine precisely what you can afford to spend on it. When determining your budget:
Keep in mind that some benefits may be available as pre-tax options, lowering your company's overall taxable income).
Do a cost analysis per benefit (the cost of different kinds of employee benefits).
Decide Which Benefits You'll Include in Your Program
Once you've determined your budget and done your cost analysis per benefit, you now need to decide which benefits you'll include in your program. These are the most common ones:
Medical, dental, and vision.
Paid time off, including vacation, sick, and personal days.
Life and disability insurance.
Retirement savings options, including matching programs.
Health Savings Accounts.
You can also offer unique benefits, such as tuition assistance or free gym membership.
Analyze The Total Compensation Your Company Offers
It's essential that you can be able to explain to both current and potential employees all the different ways they are compensated. This goes beyond just their salary and any bonuses they are eligible for.
Break down how much indirection compensation an average employee would be eligible for, thanks to all the benefits included in your employee benefits program.
Look Into Working with An External Benefits Company
Setting up and administering an employee benefits program can be a complicated process. There are specialized companies that exist solely to do this. When you work with an external benefits company, you can:
Let them know what your budget is.
Ask them for a quote.
Get them to modify the plan to suit your company's size and budget.
An excellent external benefits company can help set you up with any employee benefits program – from primary to all-inclusive!
Complete Your Benefits Program Setup and Roll It Out!
Now you're ready to let your employees know about all the great benefits they can access! Hold a group discussion to explain the details of the program and then provide them with everything they'll need to understand and access the program.
Need help getting started?
We can help you design an employee benefits package that is attractive to your employees while sticking to the budget your company can afford. Reach out to us today to learn more!
