The ‘Great Resignation’ put things into perspective for many business owners who hadn’t continued to invest in the benefits that they offer and their workplace culture. A recent survey found that 40% of employers have encountered employees who left their jobs to find employment with better benefits. Additionally, 1 in 10 workers would accept a pay cut in order to get better benefits. One way to assess where your company is at and plan for the future is through an annual benefits review.
What Is an Annual Benefits Review?
An annual benefits review is an opportunity for your business to sit down and take a look at what you’re doing right and what you’re doing wrong. It’s a chance for you to identify trends and incorporate new benefits that employees are looking for, like flexible work arrangements or mental health support. In the same way that you take time to review employee performance and see how they are doing, it’s a good idea to review how you’re doing!
What Is the Importance of an Annual Benefits Review?
47% of companies say that keeping competitive benefits packages is one of their biggest challenges. If you aren’t regularly sitting down to see where you are at, it’s hard to know whether you are competitive or if you might be losing out on top talent due to your benefits package. What are some of the benefits of performing an annual benefits review?
- An annual benefits review is an opportunity to review and consider employee feedback. Did any employees mention benefits as a problem in their exit interview? Have you heard from any new employees or current employees during surveys that your benefits are part of what attracted them to your company? By listening to direct feedback from your employees, you can ensure that you are responding to their expectations and taking action to improve employee satisfaction. In some cases, the answer might be to keep doing what you’re doing!
- Attracting top talent is important for businesses of every size and in every industry, and an annual benefits review can help you meet your recruitment goals. Your review will give you the opportunity to confirm that your benefits package is still in line with industry standards and expectations. This can be particularly valuable if you are in a competitive industry where other employers are offering modern benefits packages that include things like wellness initiatives.
- Every year, many different employment laws go into effect. Laws and regulations that cover employee benefits might have been changed since the last time you evaluated your benefits package. An annual benefits review will make sure that you are not falling afoul of any laws and may help you avoid costly potential penalties.
- Are your employees getting the most out of the benefits that you currently offer? You might not realize it, but sometimes parts of your benefits package are dramatically underutilized by employees. Your annual benefits review should include a review of plan utilization. Before you cancel any current benefits, make sure that underutilization is the result of disinterest and not a lack of education on what you offer.
What to Look for When Doing an Annual Benefits Review
A whopping 80% of companies think that employees are highly satisfied with the benefits that they offer. However, only 58% of employees report a high level of satisfaction. When you are performing an annual benefits review, make sure that you know what to look for. It’s a good idea to take a look at the benefits packages of your competitors. Are they offering anything that you aren’t? Have they changed since the last time that you checked them? For example, 5% more companies are now offering paid maternity and paternity leave, and 19% of companies are offering paid mental health says that are separate from traditional vacation or sick time.
Another factor to consider is if you are offering enough customization for your employees. One recent study found that 74% of employees prefer the ability to customize their benefits so that they are able to meet their needs. Today’s consumers expect a tailored experience, and your employees are no different. Remember that those of different ages and life stages don’t necessarily want totally different benefits, they simply might want to be able to tailor their specific benefits differently.
To learn more about how our team can assist you in designing and implementing dynamic and attractive benefits packages, please call our office at 240-422-8799 or email Jessica Storck at Jessica.storck@tribridgepartners.com.
