By Michael Moroney, Sales Operations Leader, GE Financial Employer Services Group

Employee benefits are playing an increasingly important role in the lives of employees and their families and have a significant financial and administrative impact on a business' future. Most companies operate in an environment where an educated workforce has come to expect a comprehensive benefits program. Indeed, the absence of a program or an inadequate program can seriously hinder a company's ability to attract and retain personnel. Employers must be aware of these issues and be ready to make informed decisions when they select employee benefits.

Designing the right benefit plan for your employees can be an intimidating task. There are many issues to consider, including tax and legal aspects, funding, and finding the right vendors or administrators.

For many employers, a benefit plan is an integral part of total compensation because employers either pay the entire cost of a benefit plan or have employees contribute a small portion of premium costs for their coverage. In some cases, "voluntary" coverage is offered, in which employees pay the entire costs for group benefits.

You may not be aware that there are benefits providers specializing solely in meeting the needs of small to mid-sized businesses. GE Financial Employer Services Group, for example, offers a diverse range of products for small to mid-sized businesses including:

• Term life
• Short and long term disability
• Dental
• Flexible spending account
• COBRA administration
• Stop loss-medical
• Group voluntary (dental & life) and individual voluntary benefits
• Integrated medical and dental claim administration services for self-funded employers

Before implementing any benefit plan at your company, as a first step, you should ask yourself the following 6 important questions:

1. What do you think a benefit plan should accomplish? Do you think it is more important to protect your employees from economic hardship now—or in the future? 2. What is your employee group like today? Can you project what it might be like in the future? 3. What kinds of benefits interest your employees? (Do you want employee input?) 4. How much are you willing to pay for coverage? 5. Is a good medical plan more important than a retirement plan? 6. Do you want to administer the benefit plan, or do you want the administration done by an insurance carrier?

Answering the above questions will arm you with some basic benefits information (as well as the basic questions that may still need answers) before you go benefit shopping for your employees.
If you are serious about offering your employees a satisfactory benefit plan, the best next step may be to contact an insurance broker or carrier. In today's benefits marketplace, benefits can be designed on an "a la carte" basis, in which you may be able to select a number of products that will suit your needs. An insurance broker or actuary can help you design a specialized benefit program.

An adequate benefit program has become essential to today's successful business, large or small. With careful planning, you and your employees can enjoy good health and retirement protection at a cost your business can afford.

Most employers find that offering benefits to employees not only helps them attract and retain capable personnel, but also lets them stay a step ahead of their competitors. Additionally, it promotes good morale within the company.

Finding a benefit plan that meets your budget constraints and fills the needs of your employees is crucial. The top five sources to check are:

1. Independent insurance agents who are knowledgeable about employee benefit plans (GE Financial Employer Services Group can give you a referral in your local area) 2. Your local Chamber of Commerce 3. Trade associations related to your business 4. Benefit consultants or actuaries 5. State Department (or commissions) of Insurance

Once you have identified a benefits provider(s) that you are comfortable with, here are some important last questions to ask before signing a benefits application:

1. Who is the insurance company? 2. Is it committed to small or mid-sized businesses? 3. How solvent is it? What is its financial rating? 4. What is the carrier's reputation for customer service? 5. What is the choice of doctors and hospitals offered? 6. Who administers the plan? 7. What information must the employer provide? 8. How are the employees enrolled?

To maximize the value of your benefits expense, it is important to make your employees very aware of the benefit plan. Employee meetings often ensure a smooth plan implementation. Not only do they represent smart internal "PR," but they also enable employees to use the plan effectively and to appreciate the role of benefits in their total compensation. And benefits orientation should be part of the orientation of a new employee. You can use newsletters, staff memos or employee meetings with audiovisuals to announce plan changes or to answer employees' questions.

No doubt about it, deciding to offer (or not to offer) employee benefits can be very complex. If you answer and consider the questions raised in this article, the process should be a lot easier for you. If you have other questions about health benefits, please feel free to go to GE Financial Employer Services Group and you will be directed to an ESG office near you for some additional assistance.