Flexible Benefits Plans give employees more control over their benefits by letting them choose how to pay into their benefits. Additionally, this gives employees reviewing various options and selecting the best fit across multiple benefits. There are many advantages to offering a flexible benefits contribution strategy, especially in terms of having happy, satisfied employees. Here’s what you need to know.
1. Let Your Employees Customize Their Care
Every employee is different and has different benefits needs. Letting employees tailor their own benefits helps the company as much as it helps the employee. The employee is able to focus on areas of their benefits that they most need, and will forego areas that they don’t need. This means the company isn’t being forced to offer the employee benefits that they don’t need.
How does it work?
Employees put pre-tax money towards their flexible account, just like a health savings account. They can then use that money for qualified healthcare expenses. So, rather than having to pay an exorbitant fee for healthcare expenses that they aren’t going to use, they’re instead putting their pre-tax dollars directly towards the healthcare that they do need.
Flexible accounts can be used for: dental costs, prescription medications, vision expenses, and hearing expenses. These are expenses that aren’t covered by all healthcare plans, and can be expensive to add to a plan. An employee may not need a $200 a month eyecare plan, but they may want to get help with their $50 contacts every month.
2. Provide Employees with Transparent Options
When employees have benefits that they can customize, they are able to learn more about their options. Since they have direct control over their contributions, they are more likely to look into the options and select the ones most value to them.
Employees will often feel as though they don’t properly understand their benefits because they haven’t really looked into those benefits. By providing them with more transparent options, you can encourage them to look into it further.
3. Bring in Employees Looking for Better Benefits
Today, many employees are looking for better benefits rather than better salaries. Employees with families, in particular, are going to look for healthcare benefits before they look for greater levels of wages. By providing a flexible benefits contribution package, you can potentially bring in new employees who are specifically looking for benefits.
This doesn’t just provide a more competitive package, but it does so at a lessened cost for the company. Having better talent improves the company in a myriad of ways, and it ensures that more employees are also retained. Training an employee can cost many times that employee’s annual salary: the more employees that are retained, the lower the company’s costs, and the better the continuity of business processes.
4. Keep Employees Healthier With Tailored Strategies
The more employees are able to tailor their benefits packages, particularly their healthcare insurance, the better they will be able to target the right care. Every employee has different needs, and those needs can have a direct impact on their general health, happiness, and well-being. By improving employee health, you can improve the general company culture, as well as attendance and performance.
Healthier employees work better, and every employer wants to make sure that their employees are satisfied and happy with their position. Keeping employees healthy can be a challenge if the right healthcare and benefits packages aren’t available, as employees may not be able to get the treatment that they need. Today, many employees find themselves choosing between healthcare and other essentials, and aren’t as likely to take care of themselves as they would otherwise be.
The Benefits of a Flexible Plan
Ultimately, a flexible benefits plan is another tool that you can use to make sure that your employees are getting the benefits that they desire. Benefits management is always a challenge, but the more you put your employees in control, the more likely you are to be giving them what they want. Today, cookie-cutter policies aren’t always the best bet, and employees have extremely varied needs.
As benefits packages become a more critical part of an employee’s total compensation, it also becomes more necessary to make sure that they have greater control over it. Better flexibility and better transparency will make employees feel like key stakeholders in their own benefits packages and will make them more likely to pursue more information about their benefits, and tailor their benefits to their own personal needs.
Start by looking into programs such as Flexible Spending Accounts and Tuition Reimbursement. To learn more about the benefits of flexible contributions, contact SMD Insurance at 510-895-4800 and download A Smart Small Business Tool for Employee Benefits Contributions.