How to Implement a Benefits Plan (Step-by-Step)
VanTech ABC Ltd. hired their 3rd employee and thought it is time to consider a benefits plan. The business owner, John Smith had a few concerns/questions:
- Will the plan be affordable?
- What are other tech companies offering their employees? Can he compete?
- Who will help with the plan administration?
1st INTRODUCTORY MEETING
In our first meeting, we let Mr. Smith know that a comprehensive plan for full-time employees will start at about 5-6% of his current payroll. He agreed that was affordable. We then, showed him statistics of what other tech companies in BC are offering their employees. After having a more detailed discussion about VanTech and what Mr. Smith envisioned, we decided it is best to request pricing for two plans – a basic plan and the industry average plan. The 5-6% of payroll was only an estimate – we would need to get exact quotes from the insurance carriers.
With regards to the plan implementation and day-to-day plan administration, we assured Mr. Smith, everything will be taken care of. We manage the entire plan implementation while day-to-day administration involves 3 e-mail templates which we will customize especially for VanTech. He was happy to hear that. As we were leaving, he asked what our services cost and we let him know that our fees are standard and included in the premiums insurance carriers charge – so it did not matter whether he used our services, went directly to the insurer, or to another brokerage.
2nd PRESENTATION MEETING (The Market Survey)
At our next meeting, we showed Mr. Smith the summary of the 9 insurance carriers’ 18 quotes. We had shortlisted the 3 most competitive insurers and compared the benefits side-by-side with a final recommendation. Mr. Smith was happy to see he could afford to offer his employees the industry plan with a few enhancements. In the competitive tech market, he knew he had to do better than the average to attract key employees. We then met individually with each employee to answer any questions as they filled out a 1 page benefits enrollment form.
3rd DELIVERY MEETING (Employee Presentation & Plan Administration Training)
Three weeks later, when the benefits packages arrived, we set up a short employee meeting to deliver the cards, benefits statements, booklets, and walk the employees through the online system for claims submission. At that time, we also sat down with Mr. Smith to show him the 3 plan administration e-mail templates, the online system for terminating and adding employees and our plan administrative check-list. We assured him that if anything comes up, he can call or email us at any time and we will get back to him within the hour. We also let him know that we have complimentary HR support and an employee wellness program for small businesses We would be in touch in a couple of months to follow-up on the employee satisfaction and proceed to roll out any additional programs VanTech is ready for.