Courtesy Suite Advice LLC
By Rose Miller
Benefits have become a very important issue for current and potential employees. In recent years, surveys show the workforce places greater importance on benefits than even wages. Although administering benefits and explaining all the details is usually the job of human resources, managers need to know basic information about employee benefits for a variety of important reasons. First, a small employer may not have an HR department, and employees will look to the person who just handed them that large packet of confusing information. That person should be prepared to answer complex questions. Sometimes, the human resources department is not part of the benefits plan purchasing process, resulting in large gaps in knowledge regarding plan documents and details.
Job candidates, during a job interview, are likely to inquire about benefits, and the hiring manager will want to be able to provide decent answers (or at least the correct answers!). Benefits are a selling point when interviewing job applicants. If the hiring manager is able to promote the organization’s benefits package well, it can help attract high-quality employees to the company. When new employees come on board, they will undoubtedly have even more questions about benefits, and they may also need help with the enrollment paperwork. Academic institutions and nonprofits often lead with generous benefits because their wages may not be as competitive as those in private-sector industries.
The tricky part is how employers balance the cost of insurance programs with the desire to attract the best talent. I’m dating myself when I tell you that “once upon a time” employers paid the entire cost of premiums. Premiums began to escalate by double digits in the early 1990s. As a cost-containment strategy, employers began sharing premium costs with employees.
