When employers talk about benefits programs, the major category that tends to come up is healthcare. Many business owners believe that an all-encompassing healthcare plan can be the key to winning over both new and current employees. The reality, however, is that many outwardly impressive healthcare plans are expensive and even unnecessary, costing you tens of thousands of dollars that could be better spent elsewhere in your company.
A solution that many benefits brokers ignore is to offer your company’s benefits as a customizable option instead of a pre-decided bundle for your employees. This approach can not only improve employee satisfaction with their plan, but also prevent you from wasting valuable funds on benefits your workers don’t even need.
The Problem with Redundant Benefits
There’s a good reason why healthcare is so often at the forefront of people’s minds when they think about benefits. Medical procedures are expensive, and, yes, a solid healthcare plan may be the deciding factor between whether a valuable employee chooses to work for you or go with a competitor instead.
At the same time, though, many employees would choose not to have a healthcare plan if offered one. Reasons for this may include:
- Their spouse already has a great healthcare plan that covers them as well.
- They don’t incur enough medical expenses throughout the year to even meet their deductible.
- They already have healthcare benefits they pay for themselves.
If medical benefits are redundant to one of your employees, they offer little to no value in retaining that worker. Other benefits, however, may have a greater impact on their happiness and decision to stay or go.
The Power of Choice
Imagine how much disability insurance would mean to an employee with a high-risk job. Think of the relief a great life insurance plan would provide to a worker with a growing family at home. While not every worker needs medical benefits, they may need other benefits to live as happily and securely as possible.
Providing customized benefits options can give your employees just that at a fraction of the cost. Many employers fear not being able to afford medical benefits for every worker, and offering your employees the option to choose which benefits they’d prefer can help put them in control of their plan while also saving you thousands. An employee who already gets medical benefits through their spouse’s job can opt to have great dental and life insurance instead, for example. Providing an option like this demonstrates that you care about your employees as individuals rather than throwing a blanket plan over them all, and in the process, your company’s benefits costs become far more affordable for you.
Benefits Gift Card
One of the keys to making your plan affordable, effective, and easy is by treating it like a gift card. Each employee gets a set amount of money to spend on benefits, and they can “shop” for the ones they want to receive. If they want additional benefits beyond what the limit affords them, they’re welcome to get them, but at their own expense. And, of course, if they choose not to use their allotted funds on benefits, they don’t receive the remaining amount as cash – the money is to be used strictly for its intended purpose.
This approach puts both you and your employees in control of benefits spending. You don’t have to worry about spending more than you planned on benefits, and your employees can spend as much or as little on benefits as they desire to create a plan that serves them perfectly.
You Can Afford to Pick and Choose
In the quest for a benefits plan that is both affordable and satisfying to employees, customization can be the best option for you and your workers. The potential redundancy in medical benefits can make them unnecessary for some employees who might prefer other benefits instead, and crafting a plan that caters to their needs within a predetermined limit can provide a cost-effective plan for everyone involved.
Contact us today to learn more about how a customized benefits plan can be the most affordable option for your business.