How to Get Employee Benefits for Your Business

Employee benefits are perks or compensation that you offer to your employees beyond their regular wages or salaries. Employee benefits can help you attract and retain top talent, improve employee satisfaction and productivity, and enhance your employer brand and reputation.

However, getting employee benefits for your business can be challenging, especially if you are a small business owner with limited resources and expertise. You need to consider the legal requirements, the costs, the options, and the preferences of your employees.

In this guide, we will show you how to get employee benefits for your business in five easy steps.

Step 1: Understand the legal requirements

The first step to getting employee benefits for your business is to understand the legal requirements that apply to your business. Depending on the size, location, and industry of your business, you may be legally required to provide certain types of employee benefits to your employees.

Some of the mandatory employee benefits that you may need to offer are:

To comply with these legal requirements, you need to register with the appropriate federal and state agencies, pay the required taxes and fees, provide the necessary documentation and notices, and keep accurate records.

Step 2: Determine your budget

The second step to getting employee benefits for your business is to determine your budget. Employee benefits can be a significant expense for your business, so you need to plan ahead and allocate enough funds for them.

To determine your budget, you need to consider several factors, such as:

The size of your workforce: The more employees you have, the more benefits you need to provide and the higher the costs will be.
The type of benefits you want to offer: Some benefits are more expensive than others. For example, health insurance is usually one of the most costly benefits, while paid time off is relatively cheaper.
The level of benefits you want to offer: The more generous your benefits are, the more attractive they will be to your employees, but also the more expensive they will be for you. For example, you can choose to pay a higher or lower percentage of the premium for health insurance or offer more or fewer days of paid time off.
The market rates and industry standards: You need to research what other businesses in your area and industry are offering in terms of employee benefits. This will help you set competitive rates and avoid overpaying or underpaying for benefits.
The tax implications: Some employee benefits are tax-deductible for your business, while others are not. Some employee benefits are taxable for your employees, while others are not. You need to consult a tax professional or use a tax calculator to estimate the tax impact of different benefit options.

Once you have considered these factors, you can set a realistic budget for your employee benefits program. You can also use online tools like benefits calculators or benefits brokers to help you estimate the costs of different benefit options.

Step 3: Choose the types of benefits you want to offer

The third step to getting employee benefits for your business is to choose the types of benefits you want to offer. Besides the mandatory employee benefits that we discussed in step 1, there are many voluntary employee benefits that you can choose from.

Some of the most common voluntary employee benefits are:

Retirement plans: You can offer retirement plans such as 401(k), IRA, or pension plans to help your employees save for their future. You can also match a portion of your employees’ contributions to encourage them to participate.
Dental and vision insurance: You can offer dental and vision insurance to cover the costs of preventive and corrective care for your employees’ oral and eye health.
Life and disability insurance: You can offer life and disability insurance to provide financial protection for your employees and their families in case of death or disability.
Flexible spending accounts (FSAs): You can offer FSAs to allow your employees to set aside pre-tax money for eligible health care and dependent care expenses.
Health savings accounts (HSAs): You can offer HSAs to allow your employees to save pre-tax money for qualified medical expenses, in conjunction with a high-deductible health plan.
Employee assistance programs (EAPs): You can offer EAPs to provide confidential counseling and referral services for your employees and their family members who are facing personal or work-related issues, such as stress, depression, substance abuse, or legal problems.
Wellness programs: You can offer wellness programs to promote healthy behaviors and lifestyles among your employees, such as smoking cessation, weight loss, fitness, nutrition, or mental health. You can also provide incentives such as discounts, rewards, or prizes for participating in wellness activities.
Education and training benefits: You can offer education and training benefits to help your employees develop their skills and knowledge, such as tuition reimbursement, scholarships, student loan repayment, online courses, certifications, or mentoring.
Paid time off (PTO): You can offer PTO to allow your employees to take paid leave for vacation, sick days, personal days, holidays, or other reasons. You can also offer flexible work arrangements such as telecommuting, flextime, or compressed workweeks to give your employees more control over their work schedules.
Perks and discounts: You can offer perks and discounts to give your employees access to various products and services at reduced prices or for free, such as gym memberships, movie tickets, travel deals, restaurant coupons, or gift cards. You can also provide on-site amenities such as free snacks, drinks, coffee, parking, or childcare.

To choose the types of benefits you want to offer, you need to consider several factors, such as:

Your budget: You need to choose the benefits that fit within your budget and offer the best value for your money.
Your goals: You need to choose the benefits that align with your business goals and objectives. For example, if you want to improve employee retention, you may want to offer benefits that increase employee loyalty and satisfaction. If you want to boost employee productivity, you may want to offer benefits that enhance employee health and wellness.
Your employees’ preferences: You need to choose the benefits that meet your employees’ needs and expectations. You can survey your employees or conduct focus groups to find out what types of benefits they value the most and what types of benefits they would like to have.
Your competitors’ offerings: You need to choose the benefits that give you a competitive edge in the labor market. You can research what other businesses in your area and industry are offering in terms of employee benefits. You can also benchmark your benefits against industry standards or best practices.

Once you have chosen the types of benefits you want to offer, you need to design the specific details of each benefit option. For example, you need to decide how much coverage you will provide for health insurance, how much you will contribute for retirement plans, how many days you will allow for PTO, etc.

Step 4: Find a provider or administrator

The fourth step to getting employee benefits for your business is to find a provider or administrator who can help you implement and manage your employee benefits program. A provider is an entity that offers a specific type of benefit service or product. An administrator is an entity that handles the enrollment, billing, claims processing, reporting, and customer service of a benefit plan.

Depending on the type of benefit you want to offer, you may need to find one or more providers or administrators. For example:

For health insurance, you may need to find a health insurance carrier who offers a variety of plans that suit your budget and needs. You may also need to find a third-party administrator (TPA) who can handle the administrative tasks of your health insurance plan.
For retirement plans, you may need to find a retirement plan provider who offers different types of plans such as 401(k), IRA, or pension plans. You may also need to find a retirement plan administrator who can handle the recordkeeping, compliance testing, reporting, and distribution of your retirement plan.

For wellness programs, you may need to find a wellness program provider who offers different types of wellness services and products such as health screenings, fitness classes, nutrition counseling, or wellness apps. You may also need to find a wellness program administrator who can handle the coordination, evaluation, and communication of your wellness program.

To find a provider or administrator, you can use various sources and methods, such as:

Referrals: You can ask for referrals from other businesses in your network or industry who have similar employee benefits needs and goals as yours. You can ask them about their experience working with the provider or administrator, how satisfied they are with their services and solutions, and what benefits they have gained from their partnership.
Consultants: You can hire a consultant or an expert who can help you find the best provider or administrator for your employee benefits program. A consultant can help you assess your needs and goals, evaluate different options and proposals, negotiate with providers or administrators, and oversee the implementation and management of your employee benefits program.

Once you have found a provider or administrator, you need to establish a contract or agreement with them that specifies the terms and conditions of your partnership. You need to review the contract carefully and make sure it covers all the important aspects of your employee benefits program, such as:

Scope of services: The contract should clearly define the scope of services that the provider or administrator will provide for your employee benefits program, such as the type of benefit plan, the level of coverage, the eligibility criteria, the enrollment process, the billing process, the claims process, the reporting process, etc.
Costs and fees: The contract should clearly state the costs and fees that you will pay for the provider or administrator’s services, such as the premium rate, the administrative fee, the commission fee, the service fee, etc. The contract should also specify how and when you will pay these costs and fees, such as monthly, quarterly, annually, etc.
Performance standards: The contract should clearly set the performance standards that the provider or administrator will meet for your employee benefits program, such as the quality of service, the accuracy of data, the timeliness of delivery, the responsiveness of communication, etc. The contract should also specify how and when you will measure and evaluate these performance standards, such as through surveys, audits, reports, etc.
Liability and risk: The contract should clearly allocate the liability and risk between you and the provider or administrator for your employee benefits program, such as who is responsible for any errors, omissions, delays, losses, damages, or lawsuits that may arise from the provision or administration of the benefit plan. The contract should also specify how and when you will resolve any disputes or conflicts that may occur between you and the provider or administrator, such as through mediation, arbitration, or litigation.

Step 5: Communicate and educate your employees

The fifth and final step to getting employee benefits for your business is to communicate and educate your employees about your employee benefits program. Communication and education are essential to ensure that your employees understand and appreciate the value of your employee benefits program, and that they participate in it actively and effectively.

To communicate and educate your employees about your employee benefits program, you need to consider several factors, such as:

Audience: You need to tailor your communication and education strategies to suit different segments of your workforce, such as full-time vs part-time employees, new hires vs existing employees, young vs old employees, etc. You need to consider their demographics, preferences, needs, and expectations when delivering your messages and materials.
Channels: You need to use various channels and methods to reach your employees and deliver your communication and education messages and materials, such as email, phone, text, website, intranet, social media, newsletter, brochure, flyer, poster, video, podcast, webinar, etc. You need to choose the channels and methods that are most effective and convenient for your employees.
Content: You need to create clear and concise content that covers all the important information and details about your employee benefits program, such as the type of benefit plan, the level of coverage, the eligibility criteria, the enrollment process, the billing process, the claims process, the reporting process, etc. You also need to highlight the benefits and advantages of your employee benefits program for your employees and their families, such as the cost savings, the health improvement, the financial protection, the personal development, etc.
Timing: You need to plan and schedule your communication and education activities according to the timeline and milestones of your employee benefits program, such as before, during, and after the launch of the benefit plan, the open enrollment period, the renewal period, etc. You also need to provide regular and timely updates and reminders to your employees about any changes or updates in your employee benefits program.

To evaluate the effectiveness of your communication and education efforts, you need to collect feedback and data from your employees and measure the outcomes of your employee benefits program, such as:

Participation rate: The percentage of eligible employees who enroll in or opt for a benefit plan or service.
Satisfaction rate: The percentage of enrolled employees who express satisfaction or dissatisfaction with a benefit plan or service.
Utilization rate: The percentage of enrolled employees who use or access a benefit plan or service.
Engagement rate: The percentage of enrolled employees who interact or communicate with a benefit plan or service provider or administrator.
Impact rate: The percentage of enrolled employees who experience positive or negative impacts from a benefit plan or service on their health, wellness, productivity, loyalty, or performance.