Creating An Effective Employee Benefits Program For Your Business

Creating An Effective Employee Benefits Program For Your Business

Date: September 11, 2020,

Just like any other business, you want to draw in the most talented individuals. Many choose to attract new hires by offering employee benefits. However, you want to continue making profits to grow your business, so you need a balance. Our professionals at Harvest Financial Planning, LLC work with local businesses to create employee benefit programs that fit your budget and satisfy your valued employees. We will help you identify your goals and establish solid benefits to boost morale and decrease turnover. Here’s what you should consider. 

Develop a Clear Budget and Goal

Before starting your strategy, think hard about your goals. What are you trying to accomplish? For instance, are you trying to draw in more individuals for interviews? Or, are you hoping to distinguish yourself from your competitors? The answers to these questions will guide you as you determine the benefits you want to include in your program. Additionally, sort out your budget. It’s important to be smart: even the most compassionate business owners cannot provide lavish benefits if the cost of providing them is detrimental to your company. Our financial advisors will help you find a way to maximize benefits without getting carried away. 

Choose Optional Benefits 

Depending on the size of your company, you may elect to provide certain benefits, such as:

  • Dental Insurance
  • Life Insurance
  • Health Insurance
  • Paid Time Off

Many prospective employees expect to have these benefits to some degree, so think carefully about who you want to draw to your company and the benefits they may need. Insurance coverage is highly valued by many employees, making it a critical part of your benefits program. This is also the time to select what special “perks” you’d like to showcase. For example, does your business provide extra vacation days? Be sure to identify what makes your company special.

Be Aware of Requirements

Even though you have many options, employee benefits programs aren’t completely customizable. There are federal and state regulations that require businesses to provide certain benefits. Some of those benefits include workers’ compensation, social security, unemployment, and more. Since these are not optional, you will need to compensate for these benefits as you develop your program. 

Determine and Evaluate the Total Compensation

Once you’ve decided on the components of your employee benefits program, it’s time to calculate the total compensation. Everything in your plan should be included in this total, whether they’re paid vacation days or life insurance benefits. Communicate this value to your employees so they know what they are receiving, and evaluate the compensation for effectiveness. If it’s insufficient, you can make adjustments.

Talk to a Financial Advisor For Assitance

Creating an effective benefits program is a challenge on your own. There’s plenty to discuss and consider, which is why we recommend speaking to a professional before settling. Harvest Financial Planning, LLC assists business owners looking to create employee benefits programs. We will help you navigate the possibilities with your individual budget and preferences in mind. Talk to our dedicated team now to learn how we can help you. 

 

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice.  Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.  In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

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