When starting a new company, one of the most important decisions you’ll make is the creation of a benefits package. A good benefits package can attract and retain top talent, improve employee satisfaction, and increase productivity. Here are three ways to create a benefits package for your new company.
Shop for Health Insurance
Crafting a comprehensive employee benefits package starts with finding the right health insurance policy. Offering healthcare demonstrates your commitment to your team’s well-being, while simultaneously making it easier for you to hire and keep great talent. While shopping around for coverage, explore multiple options that match both cost and provider networks so you can choose the best fit for everyone involved. When selecting a health insurance plan for your employees, think about providing an HDHP with HSA. Not only will it save you money on premiums, but also allow your staff to put away funds tax-free for medical costs. However, consider the reality of your workers – if many have families, opt for lower deductibles and copays instead.
Decide on a Retirement Plan
The second way to create a benefits package for your new company is to decide on a retirement plan. A retirement plan is another important benefit that can help you attract and retain top talent. There are two main types of retirement plans: defined benefit plans and defined contribution plans. Defined benefit plans, also known as pensions, guarantee a specific payout to employees upon retirement. However, these plans are expensive to administer and are becoming less common. Defined contribution plans, such as 401(k) plans, allow employees to contribute a portion of their paycheck to a retirement account. A SIMPLE RIA is much easier to manage, but they often come with lower contribution limits. When you contemplate a retirement plan, make sure to weigh in the fees, employer contribution level and investment choices. Fortunately, these plans are cost-friendly for employers to manage while leaving it up to employees how much they save for their future.
Choose Between Limited and Unlimited PTO
There are three options when it comes to designing a benefits package for your new business: you can decide between limited and unlimited paid time off (PTO). Limited PTO policies provide employees with an allocated amount of days away from work each year, whereas the latter offers more freedom as staff members may take leave whenever they need. Unlimited PTO plans also promote trust among personnel—a major bonus! Although unlimited PTO policies provide flexibility, it can be difficult to manage and may lead to abuse. Limited PTO is much more structured and easier to control, however this type of policy does not always offer the same amount of versatility. As you make your decision between limited or unlimited PTO for your company, weigh up the requirements of your staff as well as the corporate culture that exists in order for you to come out onto a better side no matter which way you go.
Crafting the perfect benefits package for your business is a critical decision – one that can make or break its success. As you construct it, remember to consider health insurance, retirement plans and paid time off options when deciding between à la carte versus comprehensive packages. This may seem like a daunting task; however, implementing an attractive suite of benefits has been proven to draw in top talent which in turn boosts employee morale and productivity levels.