Can you have too many benefits?

Is it possible to receive too many benefits? The answer is yes. Here are seven benefit errors that many businesses continue to commit daily.

1. You Don’t Need to Stretch It

Let’s face it, being an employee and working are very similar in most places. In most professions, even base pay falls within a narrow range. Being unique is difficult. But there are also your benefits, and there aren’t many guidelines or requirements that you must adhere to. Beyond what most workers expect—health insurance and paid time off—the world is your canvas.

Offer anything you see fit, such as dog walking, free meals, daycare, meditation spaces, and your original oil paintings. Being eccentric is fantastic. Do whatever you want as long as it will help you achieve your goals and has a quantifiable return. An incredible 88% of workers favor having the option to tailor their benefit packages.

2. Your Benefits Are Pointless

The question, “Does this perk genuinely solve a need employees have?” would be the most appropriate response. Spend your money elsewhere if a benefit doesn’t address a problem or enhance people’s lives.

The good news is that the most significant, pertinent benefits don’t cost much. Taking time off, saving money, lowering stress levels, and leading healthier lives are just a few examples of situations where they are necessary. The Hawaiian Punch fountain is excellent, but most people would be happy with a week-long vacation without any interruptions from work.

Did you know that 70% of workers did not use all their PTO days in the previous year, and 26% had ten or more unused PTO days (TSheets)?

3. The Benefits Are Attempting to Mask a Poor Culture

Sometimes businesses offer expensive benefits to make their employment more appealing. For instance, remote working can lessen the suffering if managers are dictators.

But going down this road is dangerous. Excessive benefits frequently lead to resentment. Consider yourself a worker who hasn’t received a pay increase. That employee will only begin to question the company’s financial interests if it has a climbing wall. Focusing on reality and resolving real concerns that employees have is a superior strategy.

The second most mentioned action after “raise my income” is that 42% of workers believe their employers might maintain them by enhancing their benefits package (Aflac).

4. Too Many Benefit Choices

Of course, you can have a 40-page benefits menu with countless possible combinations. Nothing prevents you, for instance, from providing 750 different voluntary perks.

For many employees, choosing benefits is already a stressful and scary process. Twenty-one percent of workers frequently regret their benefits selections (Jellyvision).

Offer them precisely curated and chosen, narrowly targeted options and packages. When feasible, make use of employee input and suggestions.

5. When Your Benefits are Hidden

Promotion of perks and benefits is necessary. Open enrollment is not the time to merely excite them and then disregard them for the rest of the year. Additionally, do not assume that personnel will be informed and engaged.

A whopping 23% of Millennials and 36% of non-Millennials cannot locate their benefit handbooks at the moment (GuideSpark).

Use is important. It is insufficient to have a simple employee benefit. Promote it, inspire interest in it, and encourage usage. You’ll need to think like a salesperson to do this. It’s worthwhile, though. Employees like boasting about their benefits more than their sensible supervisors or nice teammates.

6. The Modern Employee Cannot Use Your Benefits

The workforce of today is unlike any other. Millennials and Baby Boomers who aren’t ready for retirement are in abundance there.

In addition, more people have different sexual inclinations, and more women are in the workforce. Oh, and many of your employees might not be in the same state or on your premises.

It is challenging to develop benefits catering to these groups’ unique demands. Sadly, the days of benefits that apply to everyone are long past.

Seventy percent of respondents claim that receiving benefits that can be tailored to their requirements would make them more loyal to their companies (MetLife).

Each of these groups has unique concerns and problems with which they could use your assistance. It might be financial aid for student loans, parental and fertility benefits, adoption support, or other things employers didn’t think about 15, 20, or more years ago.

The benefits must revolve around what the workforce does.

7. Use is Suggested

In keeping with the notion that “use is super-important,” your employees can be deterred from taking advantage of their benefits.

Sixty-five percent of workers claim they receive conflicting or discouraging messages when it comes to taking time off (Project: Time Off).

Be that company, not you. Guilt has no place in the workplace. Eligible employees should be able to use it whenever they want, whether it be PTO, annual physicals, a ping-pong table, or any other benefit.

Contact Information:
Email: [email protected]
Phone: 7705402211

Bio:
Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes. Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement. ​ Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.