Let Employees Select Their Own Benefits

Even in a tight economy, benefits matter to employees. With health care costs skyrocketing and other traditional benefits disappearing because they are just too cost prohibitive for employers, one way to offer benefits to employees and still save some money is to allow employees to choose which benefits they actually find useful.

What used to be known as "cafeteria style" benefits have fallen out of favor in recent years but it can still be an efficient and effective choice for many businesses. Instead of offering every single benefit to each employee, employees can choose. For example, let us say that a particular small business offers the following benefits: high deductible health insurance, optional dental insurance for an additional out-of-pocket expense, access to a health savings plan, optional life insurance, membership to a local health club, free or reduced-price bus pass for commuters, and reduced-price parking at a local parking lot. One employee might be quite young and interested only in the health insurance, health savings plan, and free bus pass while another might not need the health insurance (he or she is covered on a spouse's plan) but would like the health club membership and the reduced parking.

The company or business saves money by not paying for all of these benefits for each and every employee and the employees are able to choose those benefits which they truly need and value. When employees are hired and once or twice a year, a management representative can go over the benefit options with each person and allow them to select and change those that they feel best meet their needs.

Some businesses may even be able to offer a few options in terms of health insurance or other benefits-instead of a one-size-fits-all health insurance choice, there may be a way to create different "packages" to suit different employees. If your business is considering going to a more versatile benefit package, it can be extremely helpful to solicit ideas from employees. By asking the employees what they would like to have and what they value, as well as taking a survey of the demographic of employees, businesses can save money and still provide decent benefits for valued employees.