How to help employers sell a benefits package to employees (and boost retention)

Business owners have no shortage of worries. Ask them what keeps them awake at night and they will tell you about supply chain issues and inflation driving up the cost of inputs. Somewhere in their list of woes will be filling open job vacancies and retaining their employees. As a benefits professional, you cannot get that container ship docked or find a lower cost supplier, but you can help with the employee-related issues.

Having a good benefits plan makes good business sense. Many business owners assume hiring and retaining good employees is like attending an auction. You need to be the high bidder, the employer who is paying the most. This increases labor costs and becomes a fixed expense.

As a benefits professional, you can remind them different people respond to different motivations. Some cost less money than others. These motivators help differentiate why one place is better to work at than another.

1. Offer a better 401(k) match. Most employers offering a plan have some sort of matching contribution. Do you match dollar for dollar up to a threshold? Do you match 50%? What is your maximum match threshold?
2. How early do company contributions vest? 401(k) benefits can be a useful way to encourage company loyalty because the matching contribution usually doesn’t belong to the employee immediately. Having an earlier vesting date can make you a more attractive employer.
3. How extensive are their plan selections? This is a benefit that fits within your area of expertise. Does the plan you offer deliver a more robust selection of investment options for employees? If the company is already your client, are they promoting the superiority of their plan to employees?
4. How good is the company health plan? The firm might provide options to employees. Are the plans on offer better than hearsay about competitor’s plans? What is the cost borne by the employee?
5. Is life insurance available for employees? This might fit into two categories. The employee might be able to buy into a group life plan made available at the firm. The firm might pay for life insurance tied to business travel. That policy would pay the employee’s family if they died in an accident while on a business trip.
6. Everyone needs financial advice. Does their firm (or you, the benefits provider) provide basic financial planning training and advice? This might be through a call center, assigned advisors or online training. Everyone needs to save and they should get started early.

There are other aspects of benefits employers offer. These are often out of your control or made available through another provider. Here are a couple the small business owner might control themselves:

1. Vacation policy. Can employees carry unused vacation time into the next year or does the company have a “use it or lose it” policy? How much paid vacation time do new employees get? How is this increased over time?
2. Flexible working hours. This has become more complicated with the introduction of “work from home” policies during the pandemic. How flexible is the firm? This can be very important to many applicants considering several offers.

Some benefits are out of your control. They may be out of the manager’s control if the company is a subsidiary of a much larger organization. This includes benefits like tuition reimbursement and the company’s stock purchase plan. These can be additional selling points for choosing one employer over another. They should not be ignored.

Related: 3 ways small businesses can attract and retain top talent amid today’s competitive labor market

As a benefits professional, you are in a position to help your client attract and retain employees. They need help in telling the story of their benefits package in as compelling a way as possible.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.