Companies must evaluate a return on investment for the benefits they offer or plan to offer if the goal of providing benefits is to recruit, engage, and retain employees.
To approach, follow these simple guidelines.
Examine the workforce's average age, as age affects the premium rating for Group Term Life and Group Medical insurance. When the age group is older, the premium rating is higher. Businesses can then decide whether the benefits should be tagged to the employee's income or be a fixed insured value for the term life insurance benefits.
Self-insurance should be considered when the cost of benefits is higher than the utilisation. For example, if the number of employees is low and outpatient usage is less than the fixed premium paid.
With today's technological advancements, many third-party administrators can offer to handle claims and reimbursement through their in-house Apps, reducing HR's workload in monitoring and administering the plan. Outpatient expenses are manageable if a proper perimeter is in place; therefore, cost containment is achieved.
In addition to healthcare, other employee benefits may include time off, flexible work schedules, professional development programs, employee discounts for gym memberships, or wellness programs are additional perks that many employees values.
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