5 Steps to Build a Benefits Strategy That Works
Employee benefits play a pivotal role in recruiting, retaining, and engaging top talent. But crafting a highly effective benefits strategy isn’t one-size-fits-all. Each workforce is unique, and a successful approach requires careful planning and execution. Here, we outline a five-step process for building a benefits strategy that delivers results.
Why Benefits Matter
Strategic benefits aren’t just perks—they’re a business advantage. According to SHRM, companies offering strategic benefits experience:
- 24% better business performance.
- 8% greater recruiting effectiveness.
- 17% higher employee retention.
Step 1: Ask Employees What They Want
Understanding your workforce’s needs is the foundation of a successful benefits strategy. Start by:
- Conducting employee satisfaction surveys.
- Analyzing benefits utilization data.
- Segmenting insights by demographics such as age, role, and location.
Tip: Use tools like Paycor’s Benefits Advisor to access comprehensive participation analytics and gain actionable insights.
Step 2: Benchmark Against the Competition
To attract and retain top talent, your benefits need to stand out. Compare your offerings with competitors by leveraging:
- Benchmarking tools for insights on benefits spending and participation trends.
- Expert advice from benefits brokers.
Why It Matters: SHRM found that 72% of companies increased their benefits spending to retain employees, and 58% did so to attract talent.
Step 3: Make a Plan
Collaborate with key stakeholders, including HR and finance, to:
- Prioritize benefits that align with employee needs and business goals.
- Determine costs and explore funding mechanisms such as self-insurance or surcharges.
- Innovate with wellness programs like yoga or mental health initiatives.
Step 4: Communicate the Plan
Effective communication is critical to the success of any benefits strategy. Ensure:
- Employees have access to benefits information online through intranet or mobile apps.
- Managers are trained as subject matter experts to answer questions.
- A total compensation statement is shared, outlining the full value of benefits and pay.
Step 5: Measure Success
Evaluate the impact of your benefits strategy using metrics such as:
- Employee turnover rates.
- Benefits utilization and participation trends.
- Employee satisfaction through ongoing surveys and feedback loops.
Simplify Benefits Management with Paycor
Paycor’s Benefits Advisor streamlines the process, helping businesses:
- Automate workflows and eliminate errors.
- Provide employees with mobile-friendly self-service tools.
- Gain insights with customizable dashboards and reports.
Take the First Step Today
A well-designed benefits strategy isn’t just a competitive edge—it’s a way to show employees that they matter. Start by assessing your current approach and explore tools like Paycor’s Benefits Advisor to enhance your strategy.
Build a benefits strategy that works for your employees and your business. Start today.
Ready to Transform Your Employee Benefits Operations?
Encourage employers to adopt the outlined steps for developing a robust benefits strategy and explore tools like Paycor’s Benefits Advisor to streamline the process.
Contact EvolvHR today to learn how we can help you implement these strategies and build a stronger, more resilient organization.