How to Institute Individualized Benefits Programs That Won’t Cost a Fortune

Customized benefits can attract, motivate, and retain key employees without emptying your wallet

Deciding how, how much, and when to give employees benefits can be a mysterious, befuddling process – but it doesn’t have to be. To give your employees benefits that will actually help them (and not burn too much of a hole in your bank account) you’ll have to get creative, tailoring each plan to the specific wants and needs of your key personnel.

Research shows that nearly 75% of employees want customized benefits plans, making them one of the best ways to motivate and retain important workers without simply throwing them cash. Reward your best employees right and not only will they work harder; they’ll also stay with you through thick and thin while being incentivized to make your company grow.

Creating specialized plans for key employees incentivizes them to stay with you for the long run

When it comes to motivating the most important employees on your payroll, standard benefits may not cut it. Instead, you’ll want to consider creating customized items for high-performers – ones that will make them think twice before accepting an offer from another employer.

Customized plans can be tailored to meet an employee’s specific needs and desires, which may greatly differ based upon their age, family, and individual financial situation. For example, an executive in his or her early 30s may be more interested in career development and nonfinancial incentives, such as attending high-level conferences or getting expert training at the company’s expense. In comparison, an executive in his or her mid-to-late 50s may be more interested in pension, retirement, and disability benefits that can support their upcoming retirement.

Creating customized disability plans for high-income employees is an option

Two of the most desired (and most effective) employee benefits are specialized savings plans and specialized disability insurance policies for workers. Customized disability insurance plans can fill major coverage gaps for high-earning employees. For example, group disability insurance policies usually have a monthly benefit cap of around $8,000 a month. That means that an employee earning $140k or more would experience at least a $50,000 annual gap in coverage if they were to become disabled. Customized plans, usually referred to as ‘executive disability plans’ can fill the gap, allowing high-income workers to receive most or all of their regular salary (congruent with the other terms of the policy) if they are no longer able to work due to a disability.

Specialized savings and investment plans can boost long-term performance

In addition to providing customizable disability insurance plans, employers can also offer savings and financial planning benefits. While 401ks are a great way to start saving for retirement, many of your higher-income employees can easily max out their contributions.

To create more value for personnel, employers can work with customized benefits providers to offer creative financial planning solutions. These include individualized savings plans that allow employees to save more with a reduced tax burden. In addition, these plans can easily be combined into a complete financial planning package that includes tax planning and comprehensive retirement planning. While these options may not be possible (or even desirable) for employees earning around $50k, they can work extremely well for essential employees who make six figures.

Non-financial incentives can also help motivate and retain important employees

It can be tough to motivate and retain employees without spending a ton of cash – but there are still several effective solutions to do so. Before considering which non-financial incentives might work best on a particular employee, it’s a good idea to take stock of the individual’s life situation, age, and goals.

Non-financial incentives like company-funded trips, business conferences, and individualized executive coaching still cost money – but they can often provide value beyond their price tag to employees who have the most to benefit from them. These types of incentives may be much more attractive to your youngest executives (late 20s, early-to-mid 30s) as they are likely to be more concerned with career advancement than retirement.

Instituting a quality employee benefits program doesn’t need to be difficult

Giving your best employees customized benefits isn’t as hard as it looks. Though there are lot of good options (and even more bad ones), with a little research and some smart decision-making, you can easily start giving your workers the incentives that work for them. Whether you want to start small and expand your benefits packages over time, or begin with a more comprehensive benefits program, your employees will surely thank you for their newfound rewards.

To learn more about instituting a cost-effective employee benefits plan for your company, contact Karp HR solutions today for a free consultation.