Benefits FAQ for Leaders!

Here are some of the most frequently asked questions we get from our clients!

What items are considered “employee benefits”?

Employee benefits, often referred to as "perks" or "compensation beyond salary," are non-wage rewards provided by employers to employees as part of their overall compensation package. These benefits can include health insurance, retirement plans, paid time off, wellness programs, and more.

Why are employee benefits important?

Employee benefits are important for several reasons. They help attract and retain top talent, boost employee morale and job satisfaction, improve overall well-being, and can provide financial security and peace of mind to employees and their families.

What are some common types of employee benefits?

Common employee benefits include:

• Health Insurance: Coverage for medical, dental, and vision expenses.

• Retirement Plans: 401(k), pension plans, or other retirement savings options.

• Paid Time Off: Vacation days, sick leave, and holidays.

• Wellness Programs: Initiatives to promote employee health and well-being.

• Life and Disability Insurance: Coverage in case of death or disability.

• Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): Accounts for tax-free healthcare expenses.

• Tuition Reimbursement: Financial support for continuing education.

• Employee Assistance Programs (EAPs): Services for personal and work-related issues.

How do I choose the right benefits for my employees?

The right benefits depend on your company's size, budget, and the needs and locations of your employees. We suggest conducting surveys, gathering employee feedback, and working with HR and benefits providers to tailor your benefits package to the preferences, locations, and needs of your team.

Can employees customize their benefits packages?

Some employers offer flexibility in benefits selection, allowing employees to choose from a range of options to create a customized package. This approach is often seen in flexible benefits or cafeteria-style plans.

Can I change or update my benefits package after it's been established?

Yes, you can change or update your benefits package on an annual basis during Open Enrollment, and it's essential to communicate any/all available changes clearly to employees. Major changes may require advanced notice and consideration of any applicable employment contracts or regulations. (There is the ability to make changes during the year outside of Open Enrollment with a “Qualifying Life Event” (QLE) such as an employee getting married, having a child, or changing locations which may change qualifications for some benefits.)

What role does open enrollment play in benefits administration?

Open enrollment is a specific period during which employees can select, change, or update their benefit options for the upcoming year. It's a crucial part of benefits administration that typically occurs annually.

How can I ensure my employees understand their benefits?

Effective communication is key. Provide clear and accessible materials, conduct benefits orientation sessions, offer one-on-one consultations, and use digital tools to help employees understand their options and make informed choices.

What is the difference between mandatory and voluntary benefits?

Mandatory benefits are those required by law, such as social security contributions. Voluntary benefits are optional benefits offered by employers that employees can choose to participate in based on their individual needs and preferences.

Remember that benefits can vary widely depending on location, company size, and industry, so it's essential to consult with legal and HR experts when designing and managing your benefits program.

Navigating Benefits Enrollment

Benefits Enrollment Guide for Small Business Owners and Startup Founders

Here's a helpful step-by-step guide to help you navigate the benefits enrollment process:

Step 1: Understand Your Budget

Before selecting benefit options, it's essential to assess your budget and determine how much you can allocate to employee benefits. Consider your business's financial health and long-term sustainability. While it is important to be as generous as you can be, it is more important that you make sure your benefit contributions align with your financial plan so that you do not have to pull back benefits in the future. The goal here is to pick plans that are responsible for your company now, knowing that on an annual basis you can grow the overall offerings by either adding more options, raising the company contribution amounts, or adding wellness programs or perks.

Step 2: Define Your Benefits Package

Decide which benefits you want to offer to your employees. Common options include:

• Health Insurance: Explore different health insurance plans that suit your team's needs. It is critical to understand where your current employees reside and where your projected headcount/growth plans might have you expanding locations to ensure your plans will cover. You will also need to consider the amounts of deductibles and co-pays for your team. 

• Retirement Plans: Consider options like 401(k)s, IRAs, or SIMPLE IRAs- many of which are simple to implement and an inexpensive benefit for your team.

• Wellness Programs: Promote employee well-being with wellness initiatives.

• Life and Disability Insurance: Consider offering protection for unexpected events. This is also usually an inexpensive benefit to the team that is well appreciated.

Step 3: Choose a Benefits Provider

Select a benefits provider or insurance broker who can help you find the best plans for your budget and needs. They can also assist with compliance, enrollment, and other audit/administrative tasks.  There are a ton of brokers out there and we have worked with many- if you would like a referral please let us know and we are happy to introduce you to some of our favorites!

Step 4: Communicate Effectively

Clearly communicate benefit options, enrollment deadlines, and the enrollment process to your employees. Ensure they understand the value of the benefits you're offering. We encourage the building of benefit guides (most which can be created within your HRIS system directly), holding Open Enrollment meetings to present the new plans and instructions on how to enroll, and preparing FAQs for easy reference for your employees as they evaluate plans. And remember, sometimes members of the team are facing very personal and confidential health issues within their family so having a safe and objective third party to help with this process is often appreciated.

Step 5: Streamlined Enrollment

Make the enrollment process as straightforward as possible. Use online platforms or apps to simplify enrollment, allowing employees to choose and manage their benefits easily. Also make sure timelines are understood and plan to potentially send reminders to the team and individuals who have not prioritized this. Also, it is important to fully explain what happens if people do not complete their enrollment (usually they will default to a specific plan) and that changes can not be made until Open Enrollment next year. 

Step 6: Review and Optimize

Regularly review your benefits package to ensure it aligns with your business goals and your employees' needs. Be open to making adjustments based on feedback. We suggest polling the team through a survey to better understand the needs of the business.

Your employees are your most valuable asset, and offering a comprehensive benefits package can help you build a motivated and engaged team that's ready to take your startup to the next level.

If you have any questions or need assistance with benefits enrollment, please don't hesitate to reach out to our HR team. We're here to help you every step of the way. Additionally, we have a FAQ post specifically for Founders who are considering their benefits options for their teams here!

Company Wellness Program Ideas

In today's fast-paced, competitive business world, companies are increasingly recognizing the value of their most important asset – their employees. A happy, healthy, and engaged workforce is crucial for achieving business success. One effective way to promote employee well-being and boost productivity is by crafting a well-thought-out employee wellness program. However, creating an effective wellness program for your company is not a one-size-fits-all endeavor. Just like there is not a quick fix diet pill, there’s no quick fix answer on what your company’s wellness program should be, or the ever-changing health and wellness needs of your employee base.  The best place to start understanding the best wellness perks for your company is by understanding the specific needs and preferences of your team and then adapting plans and perks based on employee feedback.  Below we discuss why employee wellness matters and share a list we’ve gathered of not so surprising, yet most appreciated and utilized wellness perks, along with new ways to think about how to implement them.

Why Employee Wellness Matters

1. Improved Employee Health

The most obvious and immediate benefit of an employee wellness program is improved health. When employees are encouraged to engage in activities that promote physical well-being, such as regular exercise, proper nutrition, and stress management, they are less likely to suffer from health issues. This leads to fewer sick days, reduced healthcare costs, and increased productivity.

2. Enhanced Job Satisfaction

A comprehensive wellness program can significantly boost job satisfaction. When employees feel that their employer cares about their well-being, they are more likely to be engaged and committed to their work. In turn, this reduces turnover rates, as satisfied employees are less likely to seek employment elsewhere.

3. Increased Productivity

Healthy employees are more productive. Regular physical activity and a balanced diet not only boost energy levels but also enhance cognitive function and creativity. A wellness program can help employees manage stress, leading to better decision-making and problem-solving abilities.

4. Lower Healthcare Costs

By proactively promoting health and well-being, employers can reduce healthcare costs. Preventative measures can help employees avoid costly medical treatments and interventions. This, in turn, results in lower health insurance premiums for both the company and its workers.

Company Wellness Options

Health Insurance:

Company sponsored health benefits will forever and always be at the top of most employee wellness expectations. Employees appreciate plans that cover not only medical, but also dental and vision expenses, even if they have to contribute to the premium.  However, if you are a small employer - you might not yet be in a financial position to afford health insurance that feels competitive, but there are options to look into to layer on some inexpensive benefits.  So think about starting small and building your health benefits gradually over time as your business grows.  A Qualified Small Employer Health Reimbursement Plan (QSEHRA) is a great first step to providing assistance towards health insurance and our partner Take Command is a great resource for learning more. And if you are a bit bigger and would like to look at more traditional plans, we are happy to help you evaluate your options or introduce you to brokers we have found to be the best to work with.   

Mental Health Support:

Offering mental health support and resources can be a significant benefit to your employees, especially in today's stressful work environment.  Post pandemic this is a wellness perk that has climbed to the top of the wellness wishlist.  Privacy and confidentiality around mental health needs are critical to employees, so outsourcing may be best. Calm for Business, Ginger, and Headspace are a few worthwhile options.  This benefit is particularly helpful if your company isn’t yet able to afford to offer comprehensive medical, dental, or vision benefits or if your industry is particularly stressful for employees.  Mental health support and resources offered by employers help their employees feel supported and cared for. A Calm Business mental health trends study found that 42% of respondents said work challenges are the main reasons they seek mental health support with 67% believing their employers should help their employees manage their stress and anxiety. Plus, a balanced and healthy employee is a productive and thriving employee so it is a win/win!

Onsite Company Wellness Initiatives:

Promoting physical wellness by providing ways for employees to stay active continues to be a trend in the industry. The good news is that companies have a myriad of options available to help employees to stay active. The best part about promoting physical activity as part of your wellness program is that it’s a perk that doesn’t have to cost the company a dime.  

Team Leader: We suggest nominating an internal “wellness expert” employee or committee (there’s usually at least one person on the team who loves wellness and wants to lead the charge here!) who can suggest wellness initiatives for the company. 

Walking Meetings: Some of our clients have loved implementing Wellness Wednesday Walks where there is a goal of moving meetings to walking meetings- ideally outside (weather and safety permitting.) 

Team Snacks/Meals: As the company grows and has more flexibility in the budget we have helped implement healthy snacks/lunches for teams to allow for healthy choices when folks are hungry

Gym/Classes: Once a company grows a bit and has some flexibility in the budget for the team we suggest considering gym membership reimbursements, team yoga and meditation classes onsite (which can be especially beneficial when a member of the team is certified and interested in teaching a class or two!) 

There are so many ideas here and all can help promote a healthy and productive workplace with high morale.  Remember that the best comprehensive wellness program for your employees can vary based on their unique needs, so it's important to regularly collect feedback and adapt your wellness perks accordingly. Additionally, creating a customizable approach where employees can choose the perks that suit them best can be a valuable option as well. And if you haven’t thought about this for your company before and want to chat through it- we are a phone call away!