Today’s economy and workforce is facing a critical shortage of skilled workers in various industries. Offering a competitive salary is one way to attract and retain good employees, but another way is to develop a comprehensive benefits package.
The package should help protect the employee and their family from financial hardship because of illness, disability, or death. Other benefits can include dental insurance, vision care, a retirement plan, and other optional benefits. Employees who feel that they are well-treated and that the company has their best interests at heart will be more satisfied and productive at work. Here is an overview of some of these benefits:
Health Insurance
A Health Maintenance Organization provides or arranges for patients to access health coverage from a network of preferred caregivers. A primary care physician chosen by the employee will refer the patient to a doctor or specialist in the network. A co-payment is required at each visit, and the insurance company will cover the rest of the payment.
Preferred Provider Organization
This coverage is one of the more expensive ones and is normally part of a package at a large corporation. Patients have more choices when it comes to choosing a doctor or hospital inside a network. They can consult with a specialist outside the network, but there may be additional costs.
High Deductible Health Plans
These plans are popular with young people who are less likely to require regular or ongoing health care. The deductibles are higher, but their monthly premiums are lower.
Other common plans available include Self-Insurance and Point of Service Plans.
Dental and Vision Insurance
Dental and vision insurance are common benefits offered to employees, and there a number of options to be considered. A company may offer 100% benefit coverage on preventative care, like cleanings, and partial coverage on other services, such as fillings or X-rays. More extensive services, like root canals, may have only 50% coverage. A vision plan may include coverage for lenses only or coverage for exams, frames, and lenses.
Flexible Spending Accounts
These packages allow for the flexibility of setting aside pre-tax funds throughout the year that can be used later for medical, dental, or other healthcare expenses. Since these funds are not subject to payroll taxes, they can be a great payroll tax savings.
Retirement Savings Plan
Employees can contribute a portion of their pre-tax dollars to a retirement savings plan or 401(k) plan. Some companies will match the contribution up to a certain amount. Funds can be withdrawn prior to retirement, but tax penalties will be charged. The company will typically administer and control the plan.
Having a well-structured benefits package is good for business and also good for employees. A review process should be implemented in order to be aware of and keep pace with changing trends and to stay competitive.
For more information on Oklahoma employee benefits plans, call Loftis & Wetzel at 800-725-3434. We will help you set up a package for your employees that is affordable, and will make them feel valued at your company.
