Benefits can provide companies in the manufacturing industry with an edge when competing for top candidates and striving for employee retention. Employee benefits should not focus on the quantity of benefits offerings, but rather the quality of benefits and employee perks. According to a Global Talent Trends 2020 Report by LinkedIn, better compensation and benefits are one of the top reasons that millennials leave their job.
Competitive Employee Benefits Toolkit
The following guidelines can aid in the creation of a competitive employee benefits package for a manufacturing business:
1. Establish Goals For Company Benefits
No two manufacturing companies have the same goals in terms of employee benefits. Developing a competitive employee benefits package involves creating a list of objectives for choosing benefits and designing the benefits program. Many factors should be considered when designing an employee benefits program, such as the size of the business, its location, and collective bargaining agreements. Also, consider the company’s available budget for spending on benefits.
2. Acquire Mandatory Benefits
Employee benefits generally fall into two main categories: mandatory and optional. Start by acquiring all mandatory benefits to meet compliance and avoid hefty penalties. According to the U.S. Bureau of Labor Statistics, businesses are legally obligated to provide workers and their families with basic benefits such as unemployment insurance, workers’ compensation insurance, and health insurance.
Public employees, as well as employees in private firms with up to 50 employees, are eligible for up to 12 weeks of unpaid, job-protected leave during a 12-month period for medical and family reasons. Medicare and Social Security are also two federally mandated benefits programs that all U.S. employees pay into and can benefit from later in life.
3. Perform A Needs Assessment
Conduct a needs assessment when selecting optional employee benefits based on the needs and wants of employees. A needs assessment is typically based on information drawn from multiple sources, such as the employer’s perception of what benefits are needed, the benefits practices of competitors, and current laws and regulations pertaining to benefits.
Manufacturing companies can also perform market research to gain a better understanding of what employee benefits offer the best return on investment (ROI).
4. Promote A Healthy Work-Life Balance
A competitive employee benefits package should include offerings that encourage a healthy work-life balance for all employees. In addition to offering benefits that promote good health, such as medical insurance, consider fringe benefits that contribute to a worker’s overall well-being. Flexible scheduling, remote work options, on-site cafeteria, fitness programs, and other lifestyle services can help employees create a healthy work-life balance which can lead to greater productivity and morale in the workplace.
5. List Benefits By Priority Level
Although a manufacturing company may want to offer their employees a wide range of benefits, their budget may not allow for this type of spending. To keep costs affordable, create a list of desired employee benefits and list them in order of priority. Request feedback from employees regarding what benefits are most desired and eliminate those that are not well-supported by staff.
Businesses can also look for other areas where costs can be cut and contributed to benefits, such as by implementing efficient time strategies, harnessing virtual technology or modernizing their marketing efforts.
6. Create Awareness Of Employee Benefits
Benefits may go to waste if employees are not aware that they exist. Manufacturing companies must take the initiative to communicate benefits offerings with their workforce and promote participation. There are many ways that businesses can approach benefits communication, such as by scheduling company meetings, sending a series of emails, or providing information through regular mail. Text messages, videos, voice mail messaging, and social media are also popular ways to communicate benefits with staff. Regular and consistent outreach enables employers to highlight the plan’s best features that employees may not know about.
7. Regularly Evaluate Benefits Effectiveness
Employee benefits that are currently effective may not have the same level of effectiveness in the future. This is why manufacturing companies should regularly evaluate the effectiveness of their benefits offerings and make changes as needed. To achieve a solid ROI, employee benefits should continuously meet the business’ objectives and the needs of employees. Consider creating measurable goals to assess the benefits program and continue to request employee feedback.
Talk With New City About Competitive Employee Benefits
Employees are a business’ greatest asset, especially in the hands-on industry of manufacturing. Developing a comprehensive and competitive employee benefits package can help attract new talent and retain loyal employees, while also differentiating the business from its competitors. Both employers and employees can also enjoy certain tax benefits when they become plan participants.
Working with an experienced employee benefits consulting firm can help ensure that businesses offer benefits plans that keep employees motivated and productive. For more information about creating an employee benefits plan or to get started, contact the professionals at New City Insurance.