Employee benefits packages are critical employee retention mechanisms that should provide value for all parties of a company. In this blog, La Ferla Group explains several crucial components of a forward-looking benefits strategy that encompasses cost and provides a robust package for employees.
3 Services Every Employee Benefits Package Needs
1. Group Health Insurance
Group health insurance represents the vast majority of all health insurance purchased in America. Good health is a goal of nearly every individual or family—and employees are no exception. As a result, valuable health coverage is one of the most important benefits an employer can offer.
A solid health care plan not only shows employees how much employers value their well-being and their service, but also provides employers with a competitive edge in hiring and retention.
Dental, vision and life insurance are also recommended to provide a holistic insurance package.
How it Works
Group health insurance typically affords employees the opportunity to pay reduced rates because of a process known as risk pooling. Risk pooling refers to insurance companies spreading their financial risk evenly among a group.
In general, the more people insured in a given risk pool, the lower their premiums. Employees on a group health insurance plan may make up one risk pool
2. Retirement Planning
The ultimate goal of many employees is to retire comfortably, and they seek out employers who will allow them to do so. Retirement planning services will allow them to manage their funds properly and get on the path to a fruitful retirement.
Retirement funds, particularly employer-matched 401(k)s, are another key component of employee benefits packages. Although it may seem financially regressive for an employer to match their employees’ contributions to 401(k) plans, it actually has numerous benefits:
- Tax deductions
- Avoid having to hire new employees
- Boosts employee morale
3. Disability Insurance
Disability insurance, both short- and long-term, protects the livelihoods of employees who cannot work due to illness or injury. The illnesses and injuries that count as disabilities vary depending on the insurer.
In addition to being a smart employee retention device that safeguards the financial situations of employees, employers in the following states are mandated by law to provide disability coverage for their employees:
Benefit Services that Comply with the Law
The laws and regulations that govern employee benefits package can vary widely. It’s crucial to have a benefits package manager that also provides compliance services, to make sure that all benefits an employer offers do not violate laws. This can result in hefty fines.
La Ferla Group offers comprehensive employee benefits package management services, including services that extend beyond the scope of this blog.