Create a Winning Compensation Strategy
In order to remain competitive, as well as attract and retain top employees, employers are faced with the task of creating a winning compensation strategy that will not only accomplish these objectives, but will also maintain corporate budgeting constraints. It’s a fact that employee compensation is much more than just a salary. It can encompass all the "perks," such as vacation and sick time, company vehicles, corporate memberships, and a variety of benefit options designed to provide employees and their families with, at a minimum, health insurance and retirement income. While employers are legally obligated to provide certain state and Federally sponsored benefits, the majority of employers also offer, and often contribute to, additional employee benefits.
State and Federally Mandated Benefits. Employers are required by law to participate in certain programs, either by paying taxes or making contributions. These include workers compensation coverage, unemployment insurance, Social Security, Medicare, and state disability programs, where applicable.
Group Benefits. The majority of employers voluntarily offer health-related benefits to employees. In most instances, the employer and the employee share the cost for employee health-related insurance. There is a wide range of group benefits available to employers, which include the following:
There are a number of different types of health insurance plans, including Fee-for-Service Plans, Preferred Provider Organizations (PPOs), Point of Service (POS) Plans, and Health Maintenance Organizations (HMOs). One main difference in each of these plans is the number of participating doctors. In a Fee-for-Service plan, an employee may go to any doctor for treatment, and he or she will pay a deductible and coinsurance. In a PPO plan, employees may go to any doctor of their choosing (and pay a deductible and coinsurance) or visit one of the participating doctors in the plan (and pay a lower co-payment). POS plans offer some of the flexibility of a PPO plan, but the employee must choose a primary care physician within the plan. HMOs allow the employee to see doctors only within their plans, sometimes only at HMO facilities.
Whichever plan you choose to offer your employees, there may be those who insist on seeing their own doctors and are willing to pay extra premiums and deductibles and coinsurance; for them, a Fee-for-Service or PPO plan may be a good fit. Other employees may not have that need and will appreciate a less expensive, more restrictive plan, such as a POS or HMO. In order to satisfy the majority of their employees, many employers offer their employees a choice of a Fee-for-Service or PPO plan, as well as an HMO plan.
Offering a solid benefits plan now may help you attract and retain employees that will assist you in maintaining your competitive edge. Keeping employees satisfied is a challenge that affects all employers. An annual review of your benefits package may make benefits planning a simpler task.
“If you can dream it, then you can achieve it. You will get all you want in life if you help enough other people get what they want. ”Zig Ziglar