One of the better aspects of being employed is having access to company-sponsored employee benefits. However, this information can be difficult to communicate without a clear document. An employee benefits package template is an effective tool used to educate employees about offered benefits. Firms also use it to market to future candidates by highlighting their competitive benefits package.
Importance of a Benefits Package
Choosing the right employee benefits package can be difficult. Employers may offer several packages from which to choose, along with additional voluntary and supplemental benefits. It’s up to employees to learn what each benefit plan has to offer, along with the associated costs per pay period, eligibility requirements, coverage for qualified dependents, and limitations. Employees can use this information to choose a company with a benefits package that will give them maximum coverage, given their unique health and financial needs.
To make employee benefits more comprehensive, employers often input plan details into an employee benefits package template. This document essentially lists all the benefits offered to employees so that they can compare one plan to another or one employer’s benefits to another’s. It is useful during open enrollment periods, onboarding and recruitment, and when developing an annual statement of benefits for the coming year.
An employee benefits package template isn’t difficult to create. Use the following as a guide to developing a standard employee benefits package template.
Before creating your company benefits template, it is important to gather all the information about the group benefits. This information can be obtained from previous records, the benefits plan administrator, and/or the payroll department. These elements include:
- A full list of benefits and names of the plan administrators
- The payroll deduction amount (pre-tax cost) and frequency of deductions
- The annual out-of-pocket deductible (for the employee only, the employee and spouse, or the employee and family)
- Eligibility for coverage (e.g., full-time vs. part-time, days of service, etc.)
- What portion the employer covers
- Any unique benefits or perks the company provides
Employee Benefits Package Template
A simple employee benefits package template may look like:
|Benefit||Eligibility||Cost Per Pay Period||Employer's Cost|
|LIFE||ALL||$14 Per Unit||$100|
|HSA||FT||$ VARIES||7 Percent Match|
During a job search or when offered a new job, individuals may find the employee benefits package template useful for comparing benefits plans of different companies. The human resources team can use the benefits template to build out a total compensation statement, which outlines all of the benefits and perks that employees can receive. It can be a powerful tool for recruitment, as well as for employee retention.
In most cases, however, this document serves to supplement benefit plan documents so that employees have a handy visual description of what their benefits cover and the choices they have for family coverage. It can help employees decide if they wish to pursue individual coverage or choose the group health care plan as offered by an employer. Employees can also do a side-by-side plan comparison with the employee benefits offered by a spouse’s plan to see what option is best.
Human resource directors should keep a copy of the employee benefits package template available for new hires and employees who may have questions during open enrollment periods. A digital copy should also be available and accessible 24/7 for employee inquiries. When developing annual benefit packages, an updated version needs to be created and offered to all employees.
It can be helpful to show employees the value they are getting for participating in the group health coverage, by what percentage premium rates have increased or decreased, and what’s new in terms of benefits for the new year.
Employee benefits can be a complex and confusing aspect of operating a business. However, by using a standardized employee benefits package template to organize all this information in one place, it's easier to manage and explain to employees what the company offers.