How can a PEO get you a better deal when dealing with employee benefits?
With today’s tight labor market, employee benefits are becoming more crucial to the success of businesses. Offering a high quality benefits package is one of the best ways to attract and retain the best talent. Your employees will feel rewarded and appreciated for their work, keeping them content and less likely to send their resumes to your competition.
The only problem is that offering a comprehensive benefits package is becoming increasingly expensive and time-consuming, especially for small and medium-sized businesses. A Professional Employer Organization (PEO) can help your business get access to employee benefits options that might not be available or affordable to you. They can also handle all related administrative functions, allowing you to focus on what you do best – running your business.
Read on to learn about different types of employee benefits, why they are important, and how a PEO can help ensure that you’re offering the best possible benefits to members of your staff.
Overview of Employee Benefits
Employee benefits are non-wage compensation provided to employees in addition to the base salaries and wages. These benefits may include health insurance, paid time off, life insurance, retirement benefits, vacation, education loan, overtime, and profit sharing, to name just a few. Employee benefits may be required by law or provided voluntarily by the employer.
Some characteristic features of employee benefits include:
- They are offered in addition to wages and salaries
- They represent labor costs
- They are not given for any specific job performance but to boost an employee’s interest and productivity in their work
- They are not based on merit – benefits are an attribute for better performance and support
- They are a positive cost incurred by an employer
Employees are your company’s most valuable asset. As such, it’s important to understand their needs and find ways to keep them engaged and satisfied. From an employee’s point of view, quality benefits increase their economic security and contribute to their own health and that of their family.
For a business owner, benefits help the workforce remain happy and committed, boosting their morale and productivity.
A good package of benefits will:
- Improve your company’s reputation and give you a competitive edge
- Help you attract and retain top talent
- Lower employee turnover
- Improve your company’s bottom line
You’ve got to have a good benefit offering to develop good work flow and processes that will contribute to the growth of your business.
Employee Benefits Plans
Employee benefits can vary depending on the type of organization and the job. While each state has different requirements, there are some benefits required by state and federal law.
Mandatory employee benefits include:
- Workers’ compensation insurance
- Unemployment insurance
- Social Security and Medicare
- Family and Medical Leave Act (FMLA) protections
- Health insurance (for companies with more than 50 full-time employees)
- Disability benefits (in certain states)
The other category of employee benefits is voluntary and considered necessary to satisfy employees. Popular benefits include:
- Group health insurance
- Dental insurance
- Vision care insurance
- Short and long-term disability benefits
- Life insurance
- 401(k) plan and other retirement plans
- Paid vacation and holiday leave
Combining the right mix of benefits in your benefits package is no easy task. You obviously want to make your employees happy but you also want to stay within your budget. Also, different demographics will prioritize different benefits. A PEO can help you create and plan your package based on the age of your workforce, their needs, the current market, and your budget.
A PEO Can Help Bring Down Benefits Costs
Partnering with a PEO is one of the easiest ways to offer a more robust, competitive benefits package for your employees while keeping the costs down. If you went to a health insurance broker with six employees, your options for insurance would be limited. The type of benefits you’d want to get to compete with larger corporations would be extremely expensive.
By representing hundreds or thousands of companies, a PEO can provide you with the benefits that large companies get due to economy of scale. The buying power allows them to negotiate with carriers and provide a more diverse menu of benefits with better rates and less severe out-of-pocket expenses. Whether it’s 401(k), dental, health, vision, life, or even the extra perks, working with a PEO will save you money on every benefit you want for your employees.
A PEO will also assist with employee benefits administration and management. Human resources experts will enroll members, provide training and resources to help employees better understand their benefits, provide legal notices, and maintain compliance with regulations. Effective benefits administration plays an important role in attracting, hiring, and retaining key talent, and cutting administrative costs.
Vested HR Employee Benefits Administration Services
Are you ready to get a better deal on employee benefits? Join Vested HR today! One of our main priorities is to ensure your employees have access to competitive employee benefits and solutions. We can help identify, design, build, and implement the best employee benefits package for your business and employees.
We work with top carriers and can negotiate the best rates and payment plans for your company. What’s more, we take the time-consuming benefits administration tasks off your plate so you can focus on growing your business.
Contact us to schedule a consultation and learn more about our HR services and offerings.