For many small and mid-sized businesses, benefits renewal can feel like an overwhelming process—one with shifting priorities, rising costs, and ever-evolving employee expectations. Business leaders must juggle compliance requirements, budget constraints, and the need to offer competitive benefits that attract and retain talent. It's a high-stakes balancing act, but with the right preparation and support, it’s one that can yield meaningful results for both your workforce and your bottom line.
Employers waiting to hear from insurers or their benefits partners about how much their health plans will cost next year should take this time to prepare for the upcoming renewal period, which could be uniquely challenging. Methodically approaching the task of benefits renewal and doing as much advance planning as possible will simplify the process and help maximize benefits spending.
Assess your existing plans by looking at where people enrolled and which plans they seem to prefer. This will tell you how relevant the current plans were to your employees’ needs and will help to inform your budgetary and benefits offerings decisions for next year.
Employee benefits should not be chosen in a vacuum because they play a large role in boosting engagement and satisfaction levels. A late 2019 global survey about benefits attitudes found that 37 percent of U.S. workers would rather receive better benefits than higher salaries/wages.
Employee benefit surveys are good tools for understanding what your employees want and need, which has probably changed in the wake of the pandemic. As you make benefit plan decisions for the year ahead, incorporating feedback from your team about benefits they value most, what they’re willing to pay for them and how satisfied they are with their current options will help you retain and attract top talent.
Recognizing that health care benefits costs increase every year, review what you spent on the plans you offered employees this year and determine what you can afford to spend in the year ahead.
After you’ve gathered all the information you can, you’re in the strongest position to begin shaping your 2021 benefits menu. Take those factors into account as you decide if you will change your plan’s structure, add new options or share more or less of the plan costs with your employees.
The importance of communicating with employees before and during the renewal process cannot be overstated. Many employees underestimate how much their employers pay for their benefits and, worse, often are unaware of all the benefits their companies offer. When they know and understand all of their options, employees tend to appreciate their employer more and make better decisions about how they use the plan.
Make sure to explain every available benefit, workers’ share of related costs and tips on how they can save on out-of-pocket expenses – for example, using in-network health care providers and only visiting the emergency room for crisis situations.
Renewing employee benefits can feel like assembling a complex puzzle, especially when balancing cost, compliance, and employee satisfaction. Axcet HR Solutions helps small and mid-sized businesses navigate this process with confidence. From plan evaluation and employee surveys to budget planning and compliance, our team ensures your benefits package aligns with your business goals and workforce needs.
Let us take the complexity out of your benefits renewal. Explore our employee benefits administration and compliance services to see how Axcet HR Solutions can support your business in delivering competitive, compliant, and cost-effective benefits.
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