How to create an attractive employee health coverage package
Employees at top companies today expect to be compensated in more than just their yearly salary. The big draw for candidates now are the extras and this includes fair health coverage and benefits. So what is standard in a good employee health policy?
Why An Attractive Health Coverage Plan Helps Employees Stay
Health coverage for most firms can initially feel like a gouge from the bottom line. And, in purely a numerical sense, it is. But comprehensive health coverage is often the linchpin that causes top talent to decide for one company over the other. All things being equal, health coverage seems to signal to top-flight candidates that the company is committed to their long-term prosperity. This, in turn, helps them commit in kind. Besides meeting the standard employee health coverage plans, companies will make their benefits packages competitive by extending to dental, vision, life insurance, or by offering more generous maternity.
What Your Employee Benefits Package Should Include
Depending on location, the types of employee health insurance plans can vary. What is standard and what comprises going above and beyond depends on a combination of law, how many hours an employee works (i.e: part-time versus full-time hours) and a company’s own HR policy. It’s best to consult a lawyer, especially at initial start-up or when significant changes are planned. Generally, policies that may be legal obligations include compliance with worker compensation requirements, unemployment taxes, contributions to short-term disability and retirement, compliance with family and medical leave as well as time off for jury service, military duty, and voting.
It is in a company’s long-term interest to be fair and use the employee benefits package as a platform for attracting and retaining top talent. However, this particular interest must be balanced with a company’s compunction to be financially judicious when offering benefits, especially if the entity is a start-up or a smaller business. Health coverage can quickly add up and it’s best to be more conservative when starting out because nothing cuts employee morale and undermines a company’s purported commitment than when companies start cutting benefits.