An employee benefits scheme serves to shield employees and their dependents from some form of financial adversity. It can be in the form of sickness, unemployment or death. An effective benefits management plan will keep your employees satisfied in the organization. It is not easy to establish a benefits management scheme for large corporations. Human resource managers of these organizations, therefore, often find it quite demanding to manage an array of different types of benefits for a great number of employees. Such benefits, among others, include:
- Retirement plans
- Sick or vacation leave
- Health and dental benefits
First, you need to consult the appropriate insurance companies or brokers before setting up the benefits scheme. The following are tips on establishing an effective employee’s benefits plan.
Health related insurance plans
Organizations often offer life, medical insurance, disability, and dental benefits scheme.
1. Medical cover scheme
This is aimed at protecting your employees from sickness or injury. The employees get treatment fast and resume duty quickly. It is advisable to procure a group health plan instead of covering each employee individually. Group cover is less expensive. The amount of money deducted towards the cover is not taxed as income to the employees. You can procure one of the two medical cover plans; Indemnity plan which lets you allow your employees pick the physicians they please themselves and Pre-paid plan which gives health cover to the employees using a group of physicians and hospitals. Different countries have different combinations of these plans. Dental benefits plan will help your employee’s both basic and specialized dental attention under the insurance firm you list.
Health savings accounts (HSA) plan is great and saves your company resources by outsourcing the whole health cover related issues to health practitioners listed by the government. When procuring a life insurance (cover that hands out the benefits to beneficiaries of a dead employee), you should ensure it friendly to your organization’s budget while addressing our employees’ life cover at the same time. Besides, make sure you settle for this plan after exhaustible research.
2. Scheme for retirement benefits
This ensures that a retired employee gets a monthly payment, at least 75% of his/her pre-retirement pay to maintain the previous lifestyle. You can consider any of the two plans;
Social security plan – Involves payment of monthly income to 65 years old retirees for a set period. The age at which the employee enlist to the plan, payment history should be considered in establishing a sustainable social security plan.
Employer-Mitigated retirement scheme – this is great for attracting skilled employees looking for a good retirement benefits plan. This plan is sponsored by the organization. It is a choice for both small and large corporations since it comes with tax incentives. If you have a small corporation, you can consider selecting Defined benefit (a plan for older well paid employees), Profit sharing (a sustainable plan based on contributions and profits), Money purchase (for young employees contributing steady funds), Employee stock ownership plan (employees being allowed to cover themselves by purchasing company stock) among others.
3. Leave plans
This is an arrangement whereby employees get benefits on time spend away from work. It can be in the form of emergency leave, sickness leave, holidays, education/training, and religious observance among others. It is expensive to pay a person who is not working. You should check the employees’ eligibility to the listed leave, categories of the leaves and payment. The company’s budget should be considered before arranging a leave plan.
4. Perks benefits plan
These are extra benefits your employees will expect other than the usual health and pension covers. They take the form of company automobiles, vacation, holiday gifts, service awards, and legal services among others. These perks help retain skilled employees and attract others. You should consider offering mortgages, loans and other perks on depending on the case. You should also check out legal and tax requirements of your country before establishing any such plan.
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