Key takeaways:

• Employees prioritize health insurance, retirement plans, life insurance and disability insurance
• Perks like flexible work arrangements and family care support are becoming more important for some of today’s employees
• The four main types of benefit plans are:

1. 1. Medical insurance
   2. Retirement planning
   3. Life insurance
   4. Disability insurance

• Tips for improving your benefits approach include:
  • Ask employees for feedback
  • Be smart about the budget
  • Pay attention to trends
  • Work with a Professional Employer Organization (PEO)

Employee benefits are a major deciding factor for where today’s job seekers want to work. Candidates consider everything from the health plan to retirement options to in-office perks to vacation days when assessing a job offer. Some existing employees similarly may consider what their employer offers them when deciding how long they’re comfortable staying at the company.

It is important for employers to consider the key components of a benefit plan when deciding what to offer their teams. This guide walks through the main types of plans and how to improve the way you approach benefits.

There are certain benefits that many employees consider essential, which are typically health insurance, retirement savings and paid leave. The 2022 Employee Benefits Survey from The Society of Human Resource Management (SHRM) found that health-related benefits were ranked as most important by employees. This was closely followed by retirement savings and planning benefits as well as leave benefits.

Some of today’s top employees also expect more. Flexibility benefits like remote work options and alternate scheduling have become important to some staff, according to a study from global Human Resources (HR) and payroll company, Remote. Some companies are considering perks like four-day work weeks and more robust programs for mental health support. Additional benefits to consider for today’s workforce are family leave for both mothers and fathers, family care benefits and professional development benefits, as demonstrated in SHRM’s survey.

Considering all of these components of your benefits plan can give you a thorough walkthrough of what your organization wants to offer employees. Having competitive essential plans in place is a top priority for many employers, and that can mean taking another look at these crucial health and financial benefits.

Even with all of the moving parts HR departments need to consider, updating benefits plans can sometimes have a big impact on your workforce. Here are the four critical types of benefits plans and what they entail:

1. Medical insurance

Healthcare costs continue to be a major concern for many Americans. Gallup research found that three-quarters of Americans don’t have faith in their health-related financial outlook, and 62% feel stressed about healthcare costs on a daily basis.

Providing a great health insurance plan is critical. Health insurance helps people afford their medical expenses and seek out preventive care, which could help them stay healthier and more productive. Include medical, dental and vision insurance in your plan, and consider the specific needs of your workforce when selecting the right plan for your company.

2. Retirement planning

Next on the list is retirement. Employees want to feel like their financial future is secure, and they want their employer to help them accomplish that security when they are ready to retire. There is a lot of skepticism about Social Security benefits for younger generations, and that can lead to uncertainty for some workers. Americans now want to ensure they will have money in retirement by being proactive in the retirement savings goals.

Consider improving or re-evaluating your retirement plan offering, like a 401(k), if you think it’s not the right match for your staff and company needs. If it’s possible with your organization’s budget, consider matching employees’ contributions each month for a competitive edge. A strong retirement plan is a great benefit that potential employees consider.

3. Life insurance

Employees who have a family at home prioritize life insurance, which pays out to their dependents should they pass away. Offering a life insurance plan to employees helps them gain security that their family will be taken care of if something happens.

Many employees go with a group-term life insurance plan as an optional employee benefit. Term life insurance is provided to employees only for a set period of time, which is usually as long as the employee works for you.

4. Disability insurance

Disability benefits help employees who are unable to work because of an illness or injury continue to get income or job protection. Short-term disability insurance helps those with temporary disabilities, and long-term insurance kicks in after the short-term benefits end to help those with permanent or longer-term disabilities.

According to SHRM, 71% of employers offer a group long-term disability plan for employees. It is also worth noting that five states (California, Hawaii, New Jersey, New York and Rhode Island) along with Puerto Rico, require employers to participate in their provided disability income plans.

When employers consistently review their benefits offering, it can help take the pulse of staff needs and satisfaction, and it might even help retention rates stay high in some cases. Here are a few tips to help you evaluate and offer the right benefits for your staff’s unique needs.

1. Ask for employee feedback

It can be helpful to follow research to see how employees across the nation and globe are viewing certain benefits. However, every workplace is different. Start to get to know what your unique employees value and prioritize. Ask them for feedback along the way when creating your benefits strategy. Create an open forum for communication, implement surveys or use other communication tools that work for your needs.

2. Be smart about the budget

Each organization will have different priorities when it comes to budgeting for benefits. Keep the bottom line in mind and work to balance your budgeting needs with the benefits you’re considering adjusting or adding. You can then also use employee feedback to guide what you’re spending the most money on. Seek out data about factors like plan performance, and review your strategy regularly.

3. Pay attention to trends

Following the news related to benefits can help you succeed, too. For example, you may see changes to inflation and interest rates and can deduce how those changes may be impacting your workforce. Those financial strains may be affecting your organization on a larger scale as well. During harder financial times, you may want to prioritize financial benefits if it is possible. When healthcare costs rise, it may be time to look at your health plans and see if any adjustments can be made that fit both the organization’s needs and the staff’s healthcare preferences.

4. Work with a Professional Employer Organization

A Professional Employer Organization (PEO) can help your organization round out your benefit plan. A PEO brings Fortune 500 benefit accessibility and affordability to small and mid-size businesses. PEOs can help with your benefits strategy and budgeting while analyzing trends and incorporating the right benefits technology.

Working with a PEO like StaffLink is one of the best steps you can take to support your workforce with better benefits. Our benefit plan consultants bundle HR solutions like benefits administration, payroll management and risk management to help you improve your offerings and establish a more efficient process.

Request a proposal or contact us at (954) 423-8262 for more information.