Five Mistakes To Avoid When Implementing An Employee Benefit Plan
A satisfied employee is most likely to be a hardworking employee, while an employee that feels underappreciated is likely to switch companies. To maintain their competitive edge and to retain employees, companies provide various non-wage benefits to them. Employee Benefit Plans are one such medium of showcasing gratitude and recognition.
Employee Benefit Plans are non-wage benefits granted by employers to their employees; which are not mandated by law. These Benefit Plans vary from company to company and may include Health insurance, Life insurance, Vision care, Flexible Spending Account, Accidental Death and Dismemberment Insurance, and Retirement Plans among others.
Once you’ve taken the leap and made the decision to research and implement an employee benefit plan, there are a number of factors to consider. Here are a few missteps compiled by Gene Meyer Insurance Agencies Ltd. that you’ll want to avoid to ensure the value and longevity of your plan.
1. Preferring cost over value.
Although it can be tempting to shop for a bargain, pinching pennies today, can cost you in the long run. The cheapest plan may not include key features that could be important to you and your employees. Moreover, when it comes to healthcare and dental benefits, the plan that charges the lowest premiums up front can also be the plan that is most likely to increase in cost when the renewal time arrives.
2. Choosing the wrong broker.
It is important to note, that not every broker that provides employee benefits is a specialist in that field. A little research and asking some tough questions will help you along the way. Questions like, do you specialize in employee benefits? Which insurance companies do you represent? What can we expect in terms of service? What does the renewal process look like? The answers you receive will guide you in making the right selection.
3. Not engaging your staff.
Considering the benefits of the plan will be reaped by the employees, it is only fair to ask them which benefits they value. Surveying your staff regarding their preferences can assist you in putting together a package that has high perceived value. Although it may not be possible to please everyone, you’ll be able to make an informed decision about the types of coverage that matter most to your team.
4. Ignoring the benefits plan between renewals.
We’ve all got a lot on our plates, and it’s easy to get caught up in the day to day responsibilities. However, to ensure that there are no surprises at renewal, it’s essential to monitor your benefit plan continuously. A reliable broker will be able to provide you with meaningful industry or carrier updates, as well as provide updated claims’ reports on a quarterly or semi-annual basis. Keeping an eye on the benefits and fostering ongoing feedback from your staff can help you get the highest return on investment.
5. Shopping or changing providers every year.
If claims in areas such as healthcare, dental and short term disability are high in relation to the premiums you pay, it’s likely that you can expect an increase in rates, come renewal. A common knee jerk reaction is to shop the market and find a plan that is willing to offer a similar coverage, at a cost that is equal or less than what you are paying today. Generally speaking, you will have to pay for your claims.
To avoid these and other mistakes while selecting an employee benefit plan for your employees, reach out to Gene Meyer Insurance Agencies Ltd. We offer the best group insurance services in Mississauga, Ontario, including Employee Benefit Plans, Life Insurance, Uninsurable Life Insurance, Travel Insurance, and Consulting Services. We craft tailor-made plans to suit the requirements of your company and employees and ensure hassle-free implementation.
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