WHETHER we like it or not, the benefits package on offer to employees is an essential part of the recruitment and retention process for our teams. Startups and small businesses are often simply not in a position to offer any benefits to their workers, but it does not take long for a growing business to run into the problem of what to do. Many opt for simply trying to offer a higher wage and let the employee ‘have freedom’ to make their own choices – but this approach breaks down quickly.
Why? There is no economy of scale that an individual employee can exploit – they are literally by themselves trying to buy the coverage they both need and want in a vast and confusing marketplace. They also may not know what it is they want and need. But with a comprehensive benefits package put together by professionals, your firm can create a group. Even on very small numbers of participants, groups get much better rates and prices that can be offered to your workers. Not putting a benefits package together for your team leaves them vulnerable in the event of an illness or an accident – and if they are vulnerable, so is your business.
Employees prize good benefits highly – even if they have to contribute to the cost in part. If they are not on offer, they will soon start looking elsewhere – take-home pay is important for sure, but if people are forced to spend heavily on health insurance or disability insurance themselves, less take-home cash but with benefits at your rival firm suddenly looks rather attractive.
But where to start? There are so many options on the marketplace and your company budget is limited. And you are not a benefits expert – why should you be? It is not your job to be. Which is why calling a professional such as the team at Noble-Davis Consulting is a great place to begin the process.
Our team knows what is what – but they will start by listening to you. What are your concerns? What are the concerns of your employees? How long can people afford to be off work if they are injured? How long can the company afford to have key players off work? What is your budget? Who are your employees? Are they younger or older?
By asking questions and taking time to understand your business, we can put together recommendations tailored to meet not just your needs as a business owner, but the needs of your employees – and their families. Every business is unique, but our team has a lot of quality experience – and can draw upon best practice, good examples, legal know-how and deep understanding of products, rules and regulations to put together a bespoke package for your firm. We can walk you through the implications – for your business and for your employees – of different products and different ways to structure them.
For example, a short term disability policy – do you want to offer it as a free perk to all staff? Great if you do – but if someone claims they will find their payout taxable. Which means the amount of coverage they need could be very different than if they pay a group premium rate through payroll deduction, and receive any payout tax-free.
The good news is you do not need to know the answers – our team of experts are on hand to walk you through the process until you have a fantastic package at a fair cost to both the firm and the employees. Win, win, win. To find out more and have a conversation today, contact our team at Noble-Davis Consulting.