Getting More Bang for Your Buck

By Shannon DiBari

The first of two articles.

Your benefits program can differentiate you from your competitors and help you keep valuable employees and recruit top talent. Following are some points to consider:

Find out what is important to your employees. Something as simple as a survey or an employee focus group can help you learn what your employees want in their benefits program. Be sure to tell your employees that you are seeking information to include in the decision-making process, not making the decision. Employees will appreciate being involved and that you care enough to ask their opinions.

Consider voluntary benefits. Voluntary benefits are ancillary benefits that can add sizzle to your benefits package without additional costs to you. Such benefits are generally fully paid for by the employee. Additional life insurance, disability insurance, and long-term care coverage are common examples. Here are some advantages for your employees:

• You have done the research and found a quality product, saving your employees time.
• You can provide the coverage at group rates, which tends to save employees money.
• Usually you can elect to have the employees' premiums paid through payroll deduction, which makes the process easier for employees.
   

Look at your competition. Find out what others in your industry are doing and benchmark based on the size of your company. Use the Internet, ask questions at local chamber meetings or at other peer gatherings, and use surveys such as the U.S. Chamber's annual Employee Benefits Study, which contains actual payroll expenditures for more than 600 U.S. companies of various size, industry, and geographic location. The study, which covers a variety of benefit categories, includes cost and frequency data on more than 30 different benefits and details spending on legally required payments (e.g., workers' compensation, FICA).

Communicate. Market your program. Employees can't appreciate what they don't know or don't understand. Take credit for the money you are spending on benefits and the programs you offer. Clear, concise, regular communications are key. Many vendors have good communications pieces that they provide at no charge to their customers. Ask your vendors what communications support they provide, including on-site, no-cost seminars. An annual benefits statement is an excellent communications tool. Also consider an "employees only" section on your Web site where you can put benefits information, forms, and vendor links.
In next month's edition, we'll provide information on brokers. Determining whether a broker is right for you is important. Getting good advice up front can save your business money and time and often produce better results.