Guest Column | March 30, 2015

How IT Solutions Providers Can Strategically Plan A Benefits Package

By Robyn Porter, Human Resources Manager & Consultant, HTG Peer Groups

All IT companies are facing a shortage of qualified workers, and this is especially true for SMB owners.  It seems as though the “big boys” have the competitive edge when it comes to compensation packages, perks, and benefits. In addition, the changes brought about via the Affordable Care Act have frustrated many employers, forcing them to reevaluate their benefit packages by dropping some benefits, adding additional benefits, or modifying the plans themselves.  For example, in a recent SHRM Benefits Survey, 26.3 percent of employers plan on adding a wellness component to their health plans to help offset costs.  Knowing your employees’ needs along with proper budgeting can help you find yourself competing on equal footing.  It’s not all about the salary.

First Things First

Before you start rolling out or modifying your benefits package, take a moment to understand some of the potential P&L implications:

  • Have you budgeted for benefits? 
  • Do you know the hidden fees often associated with benefit plans?
  • Is “cheaper” necessarily “better”? Some plans will end up costing you more in the long run.
  • Who will administrate the plans and how time consuming will the plan administration be?  This is an issue impacting both productivity and hiring which also makes it a P&L issue.
  • Are you aware of trends which may affect your benefit costs in the future?
  • Many benefit plans offer tax savings. Check with your tax professional to learn more.

These are but a few of the budget considerations needing attention prior to implementing a benefits plan.

Other Considerations

Fantastic! You’ve determined that you have the financial means to offer benefits to your employees, so now you can run right out and buy a health insurance plan, right?  Not so fast.  There are some additional considerations you’ll want to think through before moving forward:

  • Employee Demographics.  What is the average age of your employees; what is their life space; and will your benefits reflect that?  Child care, flex plans, disability, paid time off, flex time, retirement plans, orthodontic insurance and gym discounts are among some of the ways you can customize your benefits package to meet your employees’ needs.
  • Company Culture.  Benefits are not just about insurance. They also include the “perks” you offer (or don’t).  Providing free beverages, snacks, concierge services, wellness programs, etc., speak into the culture you are trying to foster. Not all perks make sense in all cultures.

Bandwidth

An employee benefit program is a time consuming machine involving layers of regulations, reporting, and notices. Most SMB’s don’t have the staff nor expertise to properly administrate a benefit plan, thus exposing themselves to potential legal and compliance snafus.  Large corporations have whole departments dedicated to benefits administration, but this is obviously not possible for most SMB owners. The single most effective way to administrate your benefits plan is to partner with trusted third-party administrators (TPA’s).  TPA’s can handle all aspects of your benefits plan from inception to execution.  They will keep you legal, compliant and on time, and offer a great resource to your employees as well.  Ask your local insurance agent for referrals or visit SPBA for more information.

Robyn Porter is a Human Resources Manager of 20+ years and Consultant with HTG Peer Groups.  Her background includes the IT, Hospitality, Distribution, Entertainment and Gaming industries, and from operations to ownership to corporate human resources.  Her passion lies in the SMB space helping businesses to maximize HR processes and successfully navigate the challenges.  You can reach her at rporter@htgpeergroups.com or find her on LinkedIn or Twitter at @RobynTheHRLady.