Recent data published by the U.S. Department of Labor’s Bureau of Labor Statistics revealed that employee benefits account for approximately 29.6% of the average cost per private industry employee.
Most employers want to get the most out of their employee benefit dollars, but choosing the right strategy can be challenging. Employee benefits consulting allows companies to maximize their budgets and spend smarter.
Accessing Current Benefits Budgets
Before a business can strategize on saving money and allocating dollars, it must first access and analyze its benefits budget. An experienced benefits consultant can help business leaders navigate their offerings and identify potential areas of overspending or inefficiencies.
Having this foundation can give businesses the insights they need to make better financial decisions regarding their benefits budget in the future.
Reviewing Existing Benefits Offerings and Associated Costs
There are many reasons to review your existing benefits offerings. Laws and regulations around benefits such as COBRA, ERISA, and HIPAA are constantly evolving.
Benefit priorities can also change with workplace demographics, as businesses must strive to meet the unique needs of a diverse workforce. Competitor benchmarking may even play a role in employee benefits updates to ensure a benefits package remains competitive.
The cost of employee benefits can also increase over time, sometimes significantly. Administrative fees, premiums, and other expenses can impact the affordability of a benefits plan.
Identifying Areas of Inefficiency or Overspending
With guidance from employee benefits consulting, business leaders can identify areas where they may be overspending, such as underutilized benefits.
They may also discover inefficiencies in which the cost of a particular benefit exceeds its value. In these instances, a business may need to consider eliminating a certain benefit or replacing it with one that delivers greater value.
Setting Clear Objectives and Priorities
For employee benefits packages to pay off, they must align with company objectives and priorities. Several factors, such as a business’s size, industry, and location, must be considered when identifying its goals.
Objectives can also be general, such as reducing overall costs, or employee-specific, such as offering childcare perks for younger workers or retirement benefits for aging adults.
Defining Organizational Goals and Priorities
Employee benefits consulting does several things to help businesses better define their organizational goals and priorities. First, they may suggest performing a needs analysis. They consider the demographics of the workforce and design a benefits package that meets the needs of the majority.
Communicating with employees is also a great way to determine how to maximize a benefits budget. Conduct interviews, host meetings, or survey workers to better understand their needs and desires.
Aligning Benefits Strategies with Broader Business Objectives
An employee benefits plan should reflect the company’s core values and culture. Aligning your benefits strategies with your overall business objectives can signal to your workforce that you value their commitment to the business and want to maintain their health and well-being.
The right employee benefits consultant will share your commitment to employee wellness and will work diligently with the organization as you make important decisions that positively impact the company’s future.
Customizing Benefits Solutions
In today’s competitive labor market, attracting and retaining talent is more challenging than ever. Building a customized employee benefits package that includes perks like comprehensive health coverage, flexible work hours, and paid time off (PTO) can entice employees to stay with the organization and be more productive in their roles.
The overall appeal of customizing benefits solutions is the ability to adapt to employees’ needs at various stages of their lives.
Exploring Innovative Benefits Offerings
While generic benefits were once successful in attracting and retaining talent, today’s workforce expects more innovative offerings. Consider implementing new options, such as remote work opportunities, when reevaluating your benefits budget.
Many employees prefer to work from home, and this benefit helps demonstrate trust and can help keep workers motivated. Other ideas include gym memberships, mental health resources, pet insurance, free snacks in the office, and the popular four-day workweek.
Negotiating Cost-Effective Solutions with Insurance Providers and Vendors
Another area where an experienced benefits consultant can be of service is during negotiations. Many business leaders need help negotiating with insurance providers and vendors.
Strong negotiations are required to keep benefits affordable as the cost of benefits continues to rise. The right benefit consultant will know how to approach these negotiations and will use their experience in the industry to cut costs and maximize the company’s budget.
New City Can Help with Smarter Employee Benefits Spending
A robust employee benefits package is the perfect incentive to improve employee retention and productivity. At New City Insurance, we use proven strategies to help maximize our clients’ benefits and cost savings without sacrificing employee health or wellness. To get started, contact New City at 888.210.2765 today.