Employees are the lifeblood of any business. Without them, your business can’t properly operate or thrive long-term in the industry. Your employees play one of the most important roles in your success as an entrepreneur, which is why you should take care of them.
Implementing an employee benefits program is a must if you want to keep your employees happy and motivated. With these programs, you can boost your employees’ morale and productivity and minimize employee turnaround rates, leading to a healthier workforce.
Here are four tips for implementing the best employee benefits program:
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1. Set Clear Goals
An employee benefits program will require resources from your business, which is why you need to plan one carefully. Removing employee benefits after a few weeks as you realize it’s only causing you to lose a significant amount of time and money, will negatively impact employees’ morale.
Before implementing an employee benefits program, identify what your objectives are. This will help you choose which benefits to offer to your employees, focus more on knowing the pros and cons of those benefits, and design qualifications on who qualifies for the program.
For instance, if you’re eyeing to offer Employee Stock Ownership Plan or ESOP to your employees, you’ll have to research what does ESOP stand for, how much stock you’ll allow your employees to buy, and who are qualified to buy those stocks.
2. Set Up A Budget
No matter how simple your employee benefits program is, you should never announce having one to your employees unless you have a budget. It’ll be challenging to implement these programs long-term if you don’t have a set budget in the first place.
Prioritize setting up a budget by determining how much your business can contribute to the employee benefits program. Generally, the least expensive benefits are given one-time, such as company merchandise and lunch-and-learn opportunities. The most expensive (yet have the biggest impact on employees) are health-related perks, such as medical and dental insurance.
Data shows that most employers spend around 30% of each employee’s total compensation. For example, for an employee who earns $40 per hour, you can pay an additional $12 per hour in employee benefits.
3. Assess Which Benefits To Include
After setting your goals and budget, you now have to decide which benefits to include in your program. Employers can offer a lot of benefits to employees, so be careful about what you choose. Remember, an employee benefits program should run long-term, so pick benefits that your business can confidently sustain for years.
Listed below are the most common benefits employers can offer:
- Dental/Medical/Vision: You can cover at least 50% of your employees’ dental-, medical-, and vision-related expenses. Keeping health programs affordable will encourage employees to look after their wellness.
- Paid Time Off (sick days, vacation days, and holidays): Offering PTO to your employees creates a healthy work/life balance. When you allow employees to focus on their personal responsibilities, they can return to work with a better outlook and recharged energy. This can result in increased productivity.
- Employee Stock Ownership Plans or ESOPs: Adding ESOPs to your employee benefits program can help attract top talents and enable employees to build significant wealth over time. ESOPs also foster a teamwork perspective among your employees and improve employee retention.
- Retirement Saving Options, namely 401(k): Help employees save money by including 401(k) or other similar options in your employee benefits programs. 401(k) plans are excellent options because these allow your employee to save a certain amount of money annually.
- Additional Work/Life Balance Perks: Make it easier for your employees to achieve work/life balance by offering discounts for local gym memberships or food delivery services. You can also offer flexible work schedules, remote work, or professional development opportunities.
4. Announce The Program To Your Employees
Informing your employees about the program is an important step. Your efforts to create an employee benefits program will be useless if employees don’t know it exists or don’t fully understand the purpose and qualifications of the program.
To effectively deliver critical information about your employee benefits program to the workforce, take note of these tips:
- Notify Employees: You can do this by holding a meeting to inform them about the details of the employee benefits program. During the session, show enthusiasm about the program and encourage employees to ask questions.
- Provide Details: Aside from informing your employees about the program verbally, make sure to provide printed copies of the program, as well. This will make it easier for them to remember information.
- Always Double-check: After sharing the news, follow-up regularly to see if everyone understands the program. Open the discussion during meetings or chat with your employees during lunch.
Keep Your Employees For The Longest Time Possible
With the number of businesses opening today, it’s crucial to give your employees reasons to continue working with you. Losing them to your competitors can mean spending more resources in recruitment, onboarding, and training—and going back to square one can hurt your business.
Keep your employees satisfied by implementing an effective employee benefits program. By following the tips in this article, you can motivate employees to continue working with you, increasing your chances of success in the industry!