Aug 10, 2020

Find Your Way to a Successful Benefits Strategy

Find Your Way to a Successful Benefits Strategy Blog Wide

Businesses that employ a solid benefits strategy usually go ahead of their competitors. A quality benefit strategy boosts employee engagement and helps retain the top talent. Good benefits strategies should match the needs of both employees and employers. Plus, they have to reflect the company’s values and correspond to its business goals. In this guide, we’ll take a closer look at benefits strategy development and also give you some actionable insights on how to draw up a solid benefits plan. 

How to Tailor the Best Benefits Program

Benefits programs typically vary a great deal. Basically, most organizations have to provide the workforce with a mandatory benefits package. It mostly includes unemployment insurance, workers’ compensation and medical care and is regulated by the government.However, employers can include a range of optional benefits such as life and disability insurance, paid-time-off benefits, retirement plan benefits, paid vacation, dental insurance, vision insurance, child care subsidies, professional development reimbursement, and even more. The choice is great, right? So let’s learn about the key steps you should take to design a benefits strategy that will best meet the needs of your staff.

 1. Set out your benefits objectives

Establishing clear objectives is a key step to designing an effective benefits strategy. First off, these objectives have to reflect your employees' needs. Also, when you specify your benefits objectives, take into account the following parameters:

  1. number of employees
  2. industry
  3. location
  4. collective bargaining agreements

For instance, your objectives may include satisfying employees’ needs for protection against loss of health and paid vacations. Or you can focus on tuition reimbursement apart from the mandatory benefits. It’s all up to you but keep in mind that your employees’ needs matter most.Finally, keep in mind that you should regularly revisit and change your employee benefits objectives so that they match the current needs. 

2. Determine metrics for success

How can you know that you’ve succeeded in your objectives? A good method is to create your specific success metrics. It’s especially useful when you’re implementing a new benefits option. Ask yourself what you want to achieve with it and how much time you will need for that. Use this internal indicator to identify progress or spot the areas to improve.

3. Understand your employees’ needs

To ensure the best selection of benefits for your benefits program, you should address your employees’ needs first of all. To define these needs, you have to take into account the following information:

  1. your competition’s benefits practices
  2. tax regulations
  3. your employees’ understanding of their benefits needs
  4. recent market research findings about benefits planning.

It’s also a good idea to interview the staff for their current benefits needs or utilize a detailed questionnaire. And get this: if your employees feel that their feedback is important for benefits selection, this will generate more employee motivation. Plus, it will provide for greater satisfaction with the benefits in the future.If you’re already running a benefits plan, you can find out which benefits options are underutilized by your employees and use this information for designing a cost-saving benefits strategy. By the way, most carriers offer utilization reviews for insurance plans.It goes without saying that every HR team has to analyse the current employee demographics in order to accurately define the needs of different groups. The more different demographics your staff includes, the more diverse benefits you’ll have to cover and the more complex your strategy is going to be. Needless to say that you’ll have to draw up a benefits strategy that will satisfy the needs of each category, ranging from innovative benefits options for millenials to specific services for aging workforces. Having your employees’ needs in mind, you should compare them with both current and available benefits packages. Next, you have to prioritise benefits options that you can provide for and focus on those that will best match your benefits objectives.

4. Keep track of your benefits administration performance

Successful benefits management strategies involve consistent evaluation and analysis. You should regularly review and assess your benefits strategy in order to identify whether it fulfils your benefits objectives as well as if it meets your employees’ needs.Each benefits strategy demands a dynamic approach as its efficiency depends on a range of factors. These include market fluctuations, changes in the regulations environment, and personnel demographics.You should take into account your goals and measurements to evaluate your benefits strategy and re-design it if it's necessary. It’s also a good idea to use external trends and benchmarking data to estimate the efficiency of your benefits strategy. Finally, HR teams can schedule conducting surveys to find out if the employees are satisfied with the current benefits strategy. 

Benefits Plan

As soon as you’ve carried out your employees’ needs analysis, you can move on to draw up your perfect benefits plan. Needless to say that it’s a complex and responsible task. Check out the following tips to maximize the results of your benefits administration process.

1. The key aspects you should take into account

While you’re drawing up the benefits plan, take into consideration these factors:

  1. if it is possible to introduces changes into the ongoing plan;
  2. if you can remove benefits from the plan in case they are underutilized by your employees;
  3. if the employees will have to contribute;
  4. if you’ll need a third-party administrator for benefits plan implementation.

2. Consider your benefits costs

Efficient benefits administration is undoubtedly about efficient budget allocation. It’s fair enough that each employer is likely to set the limit on the benefits cost. To effectively manage your benefits expenses, you should first of all analyse your current benefits plan and estimate your yearly benefits cost. However, if you don’t have a current benefits strategy, you can hire a professional that will help you analyse and assess your benefits budget. Or you can take advantage of the benefits administration software and the machine learning will perform the accurate calculations.

3. Take advantage of the best benefits administration software for your business

Benefits administration is a complex process. Lots of employers utilize benefits administration software to streamline the workflow of their HR teams. AI tools like Tabulera’s solutions can offer some convincing advantages to your business:

1. They save time

Using automated platforms for benefits administration, employers can save time for both their HR team and employees. As the tools perform most repetitive tasks, you can free up your time for improving other important areas of HR. What concerns employees, benefits administration software allows for direct access to benefits data. It means that they don’t have to spend time on communication with the HR team if any typical questions occur.

2. They help avoid errors

Employing machine learning is the best option if you want to eliminate errors that can occur if the work is done manually. The same is about losing the data - AI solutions ensure secure storage of your data in one place. 

3. You gain full control over the process

With benefits administration software, you’re going to take a total control over the benefits management process.

4. It's convenient

Convenience is another benefit of utilizing AI tools. Get rid of loads of papers with the benefits administration software that allows for instant access to your benefits data from any place. 

To Wrap it Up

In a nutshell, if you want to work out an effective benefits strategy, you should focus on the overall organization culture, your budget and employees’ needs. Setting up clear objectives and designing a good benefits plan are the core steps towards efficient benefits administration. If you want to streamline benefits administration processes, you can entrust repetitive routines like data processing or calculations to specialized software. It will save your costs, efforts and free up time for improving your employees’ experience of being a part of the team.

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