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Metlife’s 2022 Employee Benefits Trends Study has delivered a crystal-clear message: benefits are more crucial than ever for employees.

In particular, mental and social health benefits have become extremely important. Employees now look to their employers for increased support in these areas.

But why are we witnessing this huge shift in employee demand for these benefits?

Before COVID-19, baby boomers made up a significant portion of the workforce. But times have changed. Generation Z has entered the workplace, injecting fresh perspectives and energy into the scene.

But it’s not only about the workforce; the rules of engagement have also shifted. Recent laws now emphasize mental health, gender-neutral treatment, and equal respect for various orientations.

This shift reminds us of the pressing need to foster workplace fairness, inclusivity, and kindness.

In this blog, we’ll explore how your small business can manage employee benefits, how compensation aids retention, and how to choose optimal insurance options as a part of your compensation strategy.

Navigating employee benefits in small businesses

As you know, small business owners often lead a diverse workforce, each with unique needs and backgrounds. This can make navigating employee benefits a challenge.

Let’s simplify and outline the key types of employee benefits vital for small businesses:

Mandatory benefits

Certain benefits are obligatory, including Social Security, Medicare, unemployment insurance, workers’ compensation, overtime pay, minimum wage requirements, and jury duty leave. 

In addition, according to the US Bureau of Labor Statistics, mandatory compensation includes Coronavirus leave.

Voluntary benefits

You can offer voluntary benefits to improve employee satisfaction and retention. These may include paid holidays, vacation time, health, vision, disability, dental, life insurance, and retirement plans.

Expanding fringe benefits

Many modern employers are extending fringe benefits beyond the basics. These could include gym memberships, remote work options, flexible schedules, daycare facilities, tuition assistance, student loan repayment, employee assistance programs, and more.

Tailored compensation benefits 

Compensation packages can be customized to suit individual needs and preferences. This way, you can accommodate the diverse needs for different types of compensation in a multi-generational workforce.

How you can use compensation as a retention tool

Let’s explore how your employee compensation packages can play a vital role in making your team want to stay and grow with your company.

How to optimize your employee insurance benefits 

Insurance is a fundamental part of employee compensation and retention strategies. 

Including a robust insurance package in your employee compensation shows your commitment to employee well-being and enhances job satisfaction and loyalty.

Choosing the best insurance for your team can be made simpler and more effective by following these steps:

Understand employee preferences

Begin by gathering your staff’s input to understand what coverage and types of compensation they value the most.

Evaluate costs

Estimate the expenses associated with the plan, considering contributions from both you and your employees. This ensures the plan remains affordable and beneficial.

Check network coverage

Confirm that the insurance plan includes the healthcare providers that your employees commonly use. This guarantees convenient access to necessary medical services.

Assess customer service

Evaluate the level of customer service and support offered by the insurance carrier. A carrier that provides excellent service ensures a smoother experience for you and your employees.

Review policy flexibility 

Make sure the insurance policy allows for adjustments and modifications to account for changing employee needs or company circumstances.

Analyze exclusions and limitations

Learn about any exclusions or limitations within the policy to prevent unexpected gaps in coverage.

Consider employee education and support 

Plan for effective employee education regarding the chosen coverage and competitive employee compensation options. Provide ongoing support to address queries or concerns as they come up.

Evaluate wellness programs 

Find out if the insurance plan offers wellness programs encouraging employee health, which could potentially reduce long-term healthcare costs.

Anticipate future needs 

Select coverage options that can adapt to and accommodate changes in your workforce’s size, demographics, or health needs.

Key takeaway 

In a post-pandemic world, employee benefits matter more than ever. Gen-Z joining the workforce and changing societal norms highlight the fact that businesses need a competitive compensation package.

A good compensation package – including competitive salaries, rewards for excellent work, growth opportunities, comprehensive benefits, flexible work options, and more – is a powerful tool to retain your staff and nurture their well-being.

Additionally, insurance is a vital part of this compensation mix and not just in terms of financial protection. It represents security and care. Tailoring the right insurance package adds to employee satisfaction and reinforces loyalty.

Develop an employee retention strategy with Deliver Workforce Solutions 

If you need further assistance with your retention strategy, Deliver Workforce Solutions would love to help. 

We offer an integrated set of programs and strategies designed to help you attract, develop, and retain your employees

To book your free consultation, please get in touch with kathy@deliverworkforce.com