A well-designed employee benefit strategy can help
build a significant advantage for any company seeking to grow through the
acquisition and retention of key talent. The inability to hire and retain a
strong workforce will affect an organization’s performance and inhibit its
ability to achieve corporate goals and objectives. The ability to understand
employee needs and craft a customized strategy is one of the more critical
components of successful human resource management.
The following five steps will aid in the
development of a successful benefit design strategy.
- Be
Sure to Develop a Benefit Strategy that Aligns with the Company Mission
Statement…A company’s benefit strategy
should not be thought of as distinct and unrelated to the long term
business goals of the company, but should instead compliment the
ideological philosophies the business was built on.
- Set
Benefit Plan Goals and Budget…Establishing
objectives for the company benefit program will enable decision makers to
select the right plans, plan designs and services to round out their
overall portfolio. As a general guideline, an employee’s benefits cost is
approximately 30% of their overall compensation.
- Analyze
Employee Demographics and Benefit Needs…Benefit
portfolios should be relevant and match the specific demographics and
needs of each company’s diverse workforce.
- Choose
Plans and Providers that Match the Above Criteria… With the help of a benefits broker or consultant,
create a benefit portfolio based on the established strategy, budget and
needs of the company.
- Develop
an Effective Communication Strategy…An
effective communication strategy, involving a variety of media formats,
allows employees to take full advantage of the benefits provided.
Communication should extend beyond open enrollment periods and provide
updates, reminders and education throughout the plan year.
Once the strategy has been developed, plans
chosen and employees enrolled, company leaders should analyze and review the
program on a regular basis and be prepared to modify the strategy and its
components as needed. Employee feedback can be a valuable resource for this
process. A sound benefit strategy should not be carved in stone but should be
fluid, adapting to evolving needs, company development and any changes to the
business environment and socio-economic conditions.
The Lower Bucks County Chamber of Commerce offers its members
access to My Benefit Advisor as a solution for employee benefits, including
voluntary offerings. For more information about My Benefit Advisor, visit our
website at lbccc.mybenefitadvisor.com or contact Marlon Richardson at (215)
790-3640.
