01 Mar

Selecting the Right Benefit Plan

Posted at

2:59pm

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Once you have great employees on board, how do you keep them from jumping ship? One way is by offering a good benefits package.

In today’s competitive marketplace, offering benefits is a valuable part of the compensation package, but the complexities of finding the right benefit offerings, as well as the costs associated, can be overwhelming.

Rebecca, an employee who had been working for the XYZ Widget Company, made an appointment with her Human Resources Manager, Mrs. Brown. Her purpose for scheduling the meeting, to request an increase in benefits, since she had been with the company for three years. After all, she was instrumental in helping the company achieve a 28 percent increase in sales within the past year, so she felt that an “appropriate” reward would be a better health insurance package.

As Rebecca spoke to Mrs. Brown, she pointed out that during her time of employment with the XYZ Widget Company, her department increased sales, which resulted in increased revenues. As she made her point, she said she felt her department should receive a more comprehensive health insurance package, an increase in annual leave and a larger percentage bonus at the end of the calendar year. Rebecca indicated that the entire department put several hours of overtime and hard work in the plan to bring the government in as a customer. As long as they continue ordering the widgets they need and XYZ Widget continues meeting their needs, the company as a whole will benefit and profits will only continue increasing.

As Mrs. Brown listened to Rebecca, she acknowledged the achievement the sales department had made. Nevertheless, there was more to consider… XYZ Widget had to look at not only the sales the department has made, but the costs of running the company. Mrs. Brown explained that she felt the insurance plan was adequate, and the eight days per year in annual leave, as well as the 10 percent bonus was fair.

Rebecca expressed that it had been five years since the company reviewed their health insurance benefits and made changes. As for the annual leave, comparable companies provide their employees 10 days a year of annual leave. Regarding annual bonuses, the same companies provided their employees 15 percent of their annual income.

With so much competition, it is important to set your company apart by offering those incentives that will attract talent and promote loyalty. Benefit options are evolving. Don’t stay stagnant because you think you have limited or no options. Regardless of your situation, Vensure can help you select the right package for you and your employees needs, whether it involves reviewing your current package, or starting from scratch. Sometimes we may even be able to help put money back in your pocket! Contact your Client Relations Manager for more information.