Your employees are the most important part of your human resources and it’s important to take care of them. That is why benefits management is one of the most important tasks in a business strategy. Employee benefits are considered the number one factor when managing successful programmes and improving employee morale.
The idea is to create a benefits management strategy that focuses on creating and managing high-retention employee benefits. Here’s how you can do it.
Benefits Management – Creating High-Retention Employee Benefits
Creating the right benefit solutions means that you will have to go above and beyond the traditional benefit plans. You will have to consider the bare minimum expected benefits, your employees’ needs and wants, and your resources.
After getting a lay of the land, you will then need to start from your core benefit deliverables (health care, 401k, etc.) and work your way down to the complement benefits. Here are some core benefits you should provide.
- Health Insurance – Should include medical, dental, vision, and mental insurance, as well as various health plans.
- Paid Time Off – Should include normal PTO, vacation days, and sick days.
- Parental Leave – Should include paid maternal and paternal leave.
- Pension Plans – Should include a proper retirement or pension plan, as well as a 401k plan.
- Development Benefits – Should include professional development plans, training, and mentorship.
Other project benefits can include things such as pet insurance, on-site gym, free snacks, performance-based bonuses, and work from home privileges among other things.
Combine a set of these benefits and develop a proper customizable benefits management strategy. Approach each employee with a set of employee benefits and let them choose the ones they need or want the most.
Benefits Management – Managing High-Retention Employee Benefits
The second part of benefits management, after creating the right benefits, is to develop a way of managing them. Keep the following things in mind to do so.
Analyze Current Employee Benefits
You need to start by analyzing the current employee benefits you offer, and look for any inefficiencies. You can see which benefits are popular and which benefits are not used at all, among other things.
After the analysis, get rid of any unnecessary benefits. Make sure you only offer benefits that are needed by your employees, so you can save time, money, and resources.
Combine Benefits Management and Long-Term Goals
Benefits management does not end with your employees or your budget. It needs to align with your long-term company goals and culture.
For example, you might want to boost retention or improve recruitment. You will have to design your benefit management strategy accordingly. You should also have supplementary and complementary benefits along with your main benefits. The business case is to always provide value to your employees, and eventually, yourself.
Customize Benefits Plans
Every employee in your workforce is unique and has their own wants and needs. That is why you can’t offer them the same benefits. You need to cater to each employee’s needs and that means providing flexible benefits plans.
The one-size-fits-all solution doesn’t work in the case of employee benefits. Start by making unique profiles for each employee. Note down their family situation, plans for the future, their health profile, and their priorities.
After that, give your employees the option to customize their benefits plans (among the benefits you’re providing). Also, let them customize how many resources are dedicated to specific benefits. For example, if they want spending-related benefits and you’re providing them a company-paid credit card, give them the choice of a Walmart or Costco credit card.
Educate and Train Your Employees
Most employees are unaware of the benefits they have and their options for them. You need to make sure that your team is educated on all the benefits you provide, and how it can help them.
You can provide them with online resources, or have in-house sessions. Furthermore, with HRM systems, you can make sure that your employees are able to sign in and check their compensation packages.
Be transparent with everything and you will gain the trust of your employees.
Once that is established, you need to train your employees. The more each employee understands the system, the more efficient your company processes will be.
Invest in HR
Investing in good HR people and tools is extremely important as the start of a benefits program. When you have the right HR people, they will ensure that each employee is taken care of, individually.
With proper HR tools like HRM and compensation management systems, your benefits management will get easier and smoother.
You can also involve your employees in the process and train them on these systems too.
Benefits management is not a complicated process if you have a good relationship with your employees. If you continue to engage your employees, you will keep on learning about them. That will allow you to automatically provide them with the benefits they want and need, and reduce employee turnover.
If you are able to provide relevant customizable employee benefits to employees without asking them, you can be sure that you’ve earned their loyalty. You will always end up providing high-retention employee benefits to your employees.