A company's benefit plans provide advantages and flexibility to its employees that salary does not. It can provide a wide range of employee benefits, from popular and traditional to voluntary.
Fremont, CA: Offering enticing benefits to employees can go a long way toward attracting and retaining top performers.
When leaders present their teams with the right combination of compensation and benefits programs, they can differentiate their companies from competitors, making them more appealing to work for. But only if done correctly; this is where benefits administration comes in.
Essential steps in benefits administration:
Select Which Benefits to Offer
A company's benefit plans provide advantages and flexibility to its employees that salary does not. It can provide a wide range of employee benefits, from popular and traditional to voluntary.
Some benefits are required by law for its business to provide. These employee benefits are a set standard across states and industries. Every employer is required to provide them to comply with laws enacted by the US Department of Labor. These are some examples:
• Social security and Medicare insurance
• Workers' compensation insurance
• Contributions to unemployment compensation
In addition to this list, there are industry-standard employee benefits such as health insurance, disability insurance, family and medical leave, paid time off, life insurance, and stock options.
Maintain Benefits Costs
Benefits administration is done correctly when it can both motivate employees and save employers money.
In most cases, an employer's benefits plan will cover 70 percent of dental, medical, and vision costs. A bundled payment plan with a negotiated price can help a company save money on some of these expenses.
A company can also choose to provide a variety of voluntary benefits, which are less expensive but can still help meet its employees' needs.
