Employee benefits are typically an employer’s second largest expense after payroll. They are also a critical tool for attracting and retaining top talent. The Bureau of Labor Statistics issued a very interesting News Release: Employer Costs For Employee Compensation – September 2017. The study estimates that employee benefits make up 31.7% of an employee’s total compensation, on average.
Employee benefits include traditional coverage such as medical, dental, life, disability, and vision insurance as well as retirement plans. They also often include benefits that are non-traditional; for example: casual dress code, flexible hours, work from home options, tuition reimbursement, paid parental leave, free food/coffee, gym memberships, and wellness programs. A recent Society for Human Resource Management (SHRM) 2017 Employee Benefits survey showed that, in last 12 months, nearly one third of organizations had increased their benefits offering. Are you considering what is most important to your employees and potential candidates who are highly qualified? Are you thinking outside the box when designing your employee benefits package? While the low rate of unemployment continues, your competitors may very well be crafting benefits packages that attract top talent.
Offering a comprehensive benefits package comes the responsibility of compliance, and compliance seems to be getting harder and stricter; not any easier. COBRA, ERISA, ACA, HIPAA, and other regulations all have guidelines that need to be carefully followed to avoid costly employer penalties.
In the end, it’s important to determine the best benefit package for your business and its employees. There are resources available to assist with all elements of the process, from advisors to pricing and plan set-up assistance to HCM software, which streamlines enrollment, employee communications, and compliance aspects.