Managing Employee Benefits In A Recession
Running a business is never easy and if you have managed to keep your company afloat during this recession then kudos to you. The so-called experts claim the recession is over but everyone knows we are still years away from the economy fully being recovered. As an owner you are spending a lot of time trying to figure out the best ways to save money. Unfortunately this may include cutting labor costs, but if you can find other ways to save that can be a big help. For some companies, labor cuts have already taken place and any more cuts would cause a drop in production, which everyone wants to avoid. A great way to save money as a company is by reviewing some of the basic expenses that you have. Start with basics like phone, internet, electric, and other recurring costs. Changing these things up can save your company hundreds of dollars a month and every little bit helps. Another great way to cut expenses is by taking another look at your employee costs, but not necessarily laying people off. If your company offers employee benefits that is a great thing, but you need to take a serious look into what you are paying for. Perhaps you are not getting enough bang for your buck, or even worse, you are overpaying for minimal coverage.
Employee benefits now cover much more than just health insurance. They can include life insurance, car insurance, even loans and retirement planning. These are great things to offer as a company but you want to make sure you are getting a great deal for these services and not paying too much. Many companies have taken a serious look into the services that they are paying for over the past few years because it is a major expense that they have to deal with each month. Cutting the costs of these benefits while still offering good ones can save you as much as 10%-20% a year. How much would that 10-20% a year save your company?
To find out more about what you are paying for and what other companies can offer you need to contact a benefits administration expert. The value of a benefits administrator is that you and your employees always have someone to contact about important information regarding their benefits and what opportunities are available. Offering great benefits can help both you and your employees save money each year but you want to make sure that you are getting the best possible deals for the money you are spending. That is why it is very beneficial to do your homework. If you already offer benefits and have not changed your provider for over two years, it may be time to start researching again to make sure you have the right team working for you.
Mark Gatti is the author of this article on Employee Benefits and Benefits Administration.