An Employee Benefits Package with Real Value

Most employee benefits plans consist of three parts:

1. health insurance
2. retirement plans and
3. ancillary benefits such as life insurance, disability insurance and vacation time.

Each part requires careful consideration and should start with some basic research.

• Analyzing needs
  A good place to start is talking to employees to determine what benefits they find most attractive. This allows an employer to customize its benefits package to include options that are valued and avoid those which are not.
• Examining the competitive arena
  Knowing the benefits offered by competitors is important to remain competitive as an employer. A company that recruits across industry lines should keep in mind the popularity of certain benefits can vary by industry as well as by region.
• Tapping into professional associations and other resources
  Many professional groups provide information about benefits packages offered within the industry. Careful analysis to determine what best suits a company's needs should be a deciding factor before signing with any particular organization.

While cost is an important consideration, it is also critical to determine that the program suits the needs of both the employer and the employees. An employer doesn't need to break the bank in order to offer competitive benefits. Offering a variety of "voluntary benefits" (which the employee selects and funds) is a cost effective way to enhance an existing benefits package. Dental, vision and a variety of flexible spending accounts can help offset health expenses not covered by traditional health plans.

Life, long and short-term disability, and long-term care insurance options can help employees address a number of personal financial needs. There are also countless other non-traditional benefits to help employees feel they have a healthy work/life balance.

With the constant introduction of new products, frequent price changes and the vast array of options available, a knowledgeable Employee Benefit Specialist* can be critical to designing the most effective benefits program to meet the specific needs of a company. It can also have the welcome result of freeing up the business owner(s) to stay focused on running the business.

Throughout the process, it's important for business owners to maintain a long-term perspective. A good employee benefits package might not have a dramatic and immediate impact on the bottom line, but its subtle implications can help a company prosper for many years to come.

*Employee Benefit Specialists are affiliated with Strategic Employee Benefit Services, a nationwide marketing program of Northwestern Mutual Life Insurance Company, providing comprehensive employee benefit services exclusively through the Northwestern Mutual Financial Network. Strategic Employee Benefit Services offers a selection of top employee benefit companies to furnish businesses with high-quality, competitively priced benefit programs.