In order for employee benefit programs to be well received they need to be developed with the interests of the employees in mind while meeting the objectives of the firm’s management.
Young firms often implement benefits with the intent of attracting employees who are critical to the success of the business and create strategies to retain employees for the long-term. Determining which benefits are most attractive and which will provide the most meaningful value varies by the style of management and often the age of the employees. Young tech companies often attract different employees than manufacturing or professional firms. Age, gender and family makeup drive plan design and network considerations. Enrollment and access to information needs can be quite different as well.
More established firms would benefit from reviewing existing plans for cost and benefit effectiveness. As firms grow and mature it is critical to review compliance requirements as they change from year to year and plans are often left on auto-pilot. Particularly critical is keeping up with the changing landscape of federal requirements and programs like the Affordable Care Act and Medicare. A little planning and review can prevent a world of stress and possible penalties.
As firms mature and prepare for succession it is vital to review exit strategies for owners and key employees. It may be time for senior employees to enroll in Medicare or consider options if individuals plan to retire before they are eligible for Medicare. Benefits other than major medical will need to be reviewed and shopped out as they may not continue into retirement.
As management objectives change, benefit modifications may need to be made, especially as increasing costs impact plan budgets. Annual review of plan designs and networks should be accompanied by updates on compliance requirements so that premium dollars are being used to their best advantage. Companies spend millions of dollars on employee benefits packages nationally. How many of these dollars are providing benefits that are truly meaningful to the employees of these firms?
As you design your employee benefits, keep CDA Inc. in mind. We have over forty years of experience in providing a wide range of employee benefit packages.