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. Letting an employee benefits audit fall off your radar can cost your organization in a number of ways. 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.
Audits Can Save Money
It’s easy to get comfortable with your current benefits plan. If it’s not broken, why fix it? But, the market for certain aspects of your employee benefits package changes yearly. It’s important to consult with your benefits broker to discuss what plans are available to make sure you’re on the right path. Even if you opt not to change plans or insurance carriers, 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.
Are Your Benefits Keeping Pace with Your Business?
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.
Pick the Right Benefits for Your Employees
If your employees can’t or don’t use the benefits you’re providing, it’s time to reexamine your plans. You could be throwing money down the drain by not giving your employees what they want or need. The best way to effectively spend your benefits budget is to ensure your employees are benefiting from the options provided. You may find that changing up the benefits saves you money and makes for a happier workforce.
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.
This post has been updated from its original run on December 15, 2014