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Key Factors in Designing Modern Benefit Plans

As a multi-generational workforce looks for different benefits, companies need to be flexible in how they approach benefit packages.

The bottom line is always important, but when it comes to benefits planning, decision-makers at the C-Suite level need more than just cost-effective options. The problem is, many benefits providers don’t fully understand the unique concerns of executives. It’s important to assess the needs of everyone involved in benefits planning, from the employees a company hopes to support and retain, to the HR managers weighing many variables and the captains of the corporate ship trying to make all the pieces fit together.

When working with organizational leaders, discuss a few key points of interest:

 

Understand Key Business Threats

Organizational leaders have different concerns than HR managers. Many of their top pain points include profits and profitability. When faced with the rising prices of health care, leaders can see the overall costs to provide comprehensive benefits plans have eroded profits across the board.

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“As costs have gone up over the years, the strategy for most employers has been to devalue their benefit plan, by way of higher out-of-pocket costs,” notes PayneWest Sales Executive, Select Benefits Group, Matt Henderson. “The employer pays for less and less of the total costs of a benefits plan. But that path of passing the costs to the employee isn’t sustainable.”

Instead, look at multiple tools that address business threats and cost increases.

“Why keep doing the same thing year after year expecting different results?” notes Henderson. “Our unique tools and strategies can stop this profit erosion in its tracks.”

 

Use Custom Plans to Promote Employee Retention

Another key concern of the C-Suite is increasing their market share and retaining those employees that the organization has worked hard to recruit and train.

“Times of adversity also mean times of opportunity for those with the right frame of mind,” says Henderson. “Those employers who pay attention to more than just wages have more productive and more loyal, long-term employees.”

Instead of working to provide benefits plans that meet the bare minimum of requirements, tailor clients’ full compensation packages to best fit their distinct markets and corporate concerns. Potential new hires and existing employees who are comparing employers’ benefits packages can see the real value of, for example, a medical benefit paid at 100% by their employer. They may be willing to work for a lower salary when they account for all the money saved by a benefits package that speaks to their needs.

Newer types of benefits plans also provide more options for the disparate multi-generational workforce, who have very different benefits needs. Younger workers are concerned with student loan repayments, while employees closer to retirement want their employer to take care of their 401K with a generous match.

 

Consider Concerns Over Business Valuation

Knowing their company’s worth is a constant concern for the C-Suite, and at the end of the day, they’re working to increase shareholder value. The ultimate valuation of shares in the company is determined by the business’ profitability.

“It’s a multiplier effect, both positively and negatively, if you’re taking a big hit in your benefits plan,” notes Henderson. “If we can successfully implement our cost containment strategies, businesses can impact their profitability in a way that makes shareholders and the C-Suite happy.”

It’s about investing today in the tools that impact your bottom line right now, so you can have a multiplying impact on the worth of your business into the future.

 

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