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5 Steps to Build a Benefits Strategy That Works

• by EvolvHR Team

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.