Help Employees Understand Their Employee Benefits
Published on April 05, 2018
Updated July 26, 2019
Success in business can be greatly influenced by the quality of employees you have working for your small business. A great way to ensure that you’ll hire and retain top talent is to offer benefits to show your employees that you know their worth. Employee benefits can improve both the health and the financial security of your workers. Thus, if you make it clear that you offer a broad selection of quality employee benefits, you can attract and retain the skilled staff you need to succeed.
Getting employee benefits for your small business employees is just the first step, though—as the owner, you may need to help walk your employees through their small business benefits, so they can get the most out of what you’re offering.
Understand small business benefits yourself
Before you can choose a small business benefits plan for your employees, you need to understand the benefits yourself. Watch the video below to see how easy shopping on eHealth.com can be. We’re here to be with you every step of the way, whether it’s comparing quotes or explaining the benefits in detail.
What types of employee benefit plans should I offer?
Since you run a small business, you’ll likely be purchasing group coverage, instead of individual health insurance. Since your policy will be covering a variety of people, you may be offering a few different types of plans. Not every plan is the same, and some work better for different people. So, it’s important that your employees know what is being offered, and which type of health insurance is best for them. Two popular types of plans are Preferred Provider Organizations (PPO) and Health Maintenance Organizations (HMO), so you can choose to offer those, or maybe you want to offer a wider variety, which you can explore here. When deciding what choices for plans you want to offer as employee benefits, keep a few things in mind:
- Different plans come with different price tags. The lowest premium plan may not be the cheapest for those insured under it. As the employer splitting monthly premiums with your employees, it may be tempting to look at that price tag only. But there are other prices to keep in mind, like deductibles, copayments, and coinsurance, to name a few. Depending on each employee’s health-care needs, some plans may be financially smarter for different employees, so offering a range of plans may help everyone save more money on their health insurance.
- Keep in mind that some of your employees may be adding dependents (such as children) to their health insurance plans, so make sure you calculate that possibility into your budget for offering employee benefits in your small business.
- Employee benefits might not be as simple as you thought. You’ll have to consider if you want to offer plans that also cover things like prescription drugs, dental services, or vision services.
Besides offering a variety of options for employee benefits, give employees opportunities to switch between those plans. Ideally, they should be able to change their coverage at least once a year. This ensures that if their health needs change or they find their current coverage unsatisfactory, they won’t be locked into a plan they don’t like.
Walking through employee benefits with your staff
Once you’ve given your workers a range of employee benefits to consider, the next step is to guide them through these options. You may want to walk your employees through their benefits yourself – or ask a health insurance representative to give a presentation – to help make sure employees choose what’s best for them. You can use the close-knit setting of a small business to your advantage by communicating to your employees about small business benefits you offer.
- Cost & coverage comparison. The more plans you offer, the more complicated it can be for employees to weigh them all against one another. To help them with this process, create simple infographics or tip sheets that compare the copays, deductibles, premiums, and covered procedures of each employee benefits plan. By putting all these elements side-by-side, you make it easier for your staff to understand what each choice means for them.
- Impact on other options. Employees who currently get their health coverage from other sources may not want to switch to your plan. You should make it clear that while they’re welcome to make that choice, the fact that you’re offering them employee benefits may change their other opportunities.
- Communication. Invite workers to ask questions about any other aspect of your employee benefits. If you can’t answer those questions off the top of your head, find out the answer and get back to them as soon as possible.
Offering employee benefits in your small business is a great way to foster a positive work environment, and make sure that your employees have access to quality healthcare. After shopping for small business health insurance and committing to contribute to employees’ premiums, it would be a shame to let employees to miss out on other available small business benefits. Whether you’re hiring new people, getting employee benefits for the first time, or it’s simply time for a refresher on what’s available, don’t be afraid to take some time out of your day to explain employee benefits.
For more information on providing affordable, comprehensive employee benefits, visit eHealth.com.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.