A stellar employee benefits package is one of the top deciding factors for employee recruitment and retention. Unfortunately, when businesses become busy, employee benefits audits slip down the priorities list. It’s important to not let this happen. There are many benefits to a regular, thorough examination of a benefits package. Here are a few reasons your company should be examining the benefits it offers to its employees.
The market for certain aspects of your employee benefits package changes yearly. With those changes, there are opportunities for better coverage or more efficient utilization of funds. If your company has been renewing its health and wellness coverage blindly, it’s time to take a hard look at available options. You may be able to gain leverage in the negotiation of your premiums. If your current providers can’t provide coverage at reasonable rates, it may be time to switch providers.
As your business grows, you may have more options for employee benefits. These options could have better rates. If your company has recently enjoyed an increase in headcount, it may be time to examine the options available. For smaller companies, there may be options to enroll in more advantageous plans through a multi-employer plan.
The best way to effectively spend your benefits budget is to ensure your employees are benefiting from the options provided. When employees do not use their plans completely, readjustments may be needed to save money.
Depending on the size of your company, you may be under a legal obligation to submit an annual employee benefits audit. Generally, companies with over 100 employees must have an annual audit required by the IRS. Retirement savings plans, pension plans, and other benefits may fall under the requirement to audit and report.
The best way to ensure your benefits package is effective for both cost and utility is to do a yearly audit. Do not let it slip off your priorities list when business gets busy. Keep it at the top of the list, so you can continue your success.