Mistakes You’re Making With Company Benefits

As a business, marketing, or HR leader, it’s essential to fully understand and optimize company benefits to ensure the well-being of employees and the overall success of the organization. Unfortunately, mistakes can be made when managing these benefits, resulting in lost opportunities or financial losses for both the company and employees. Here are a few common mistakes you could be making.

Leaving Money on the Table

One of the most common mistakes made with company benefits is failing to take advantage of matching contributions, effectively leaving money on the table. Many organizations offer matching contributions to retirement plans, such as 401(k)s, as part of their benefits package. Employees who don’t maximize these contributions miss out on valuable savings that can significantly impact their long-term financial well-being. To avoid this mistake, educate employees about the importance of contributing enough to their retirement plans to receive the full employer match. Encourage them to review their contribution levels regularly and make adjustments as needed to ensure they’re not missing out on any available matching funds.

Still Using an FSA

Another mistake is continuing to use a Flexible Spending Account (FSA) instead of a Health Savings Account (HSA) when an HSA is available. Both accounts offer tax-advantaged savings for healthcare expenses, but HSAs have several advantages over FSAs. Unlike FSAs, HSAs roll over every year, so you never lose the money. They can also be invested, offering the potential for long-term growth. In addition, HSAs are portable, meaning they stay with the employee even if they change jobs or retire. On the other hand, FSAs are subject to a “use it or lose it” rule, where any unused funds are forfeited at the end of the year. Given these differences, it’s essential to evaluate whether an HSA is a better fit for your organization and employees, and make the switch if appropriate.

Overlooking Peripheral Benefits

Peripheral benefits, such as wellness programs, employee assistance programs (EAPs), and professional development opportunities, are often overlooked, despite their potential to improve employee satisfaction and well-being. These benefits can address various aspects of employees’ lives, from physical and mental health to career growth, contributing to a more engaged and productive workforce. To avoid this mistake, take the time to review and assess the peripheral benefits your organization offers. Ensure they align with employees’ needs and interests, and communicate these offerings effectively. Encourage employees to take advantage of these benefits and provide regular reminders and updates to maintain awareness and engagement.

Effectively managing company benefits is crucial for the success and well-being of both your organization and employees. By addressing common mistakes, such as leaving money on the table, still using an FSA, and overlooking peripheral benefits, you can ensure your company’s benefits package is optimized and appreciated by employees, ultimately contributing to a thriving, engaged workforce.

Did you enjoy reading this article? Here’s more to read: The role of emotional intelligence in effective leadership

Categories

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Business Blogging 101: How to Create and Sustain a Successful Blog

Business Blogging 101: How to Create and Sustain a Successful Blog

For businesses, business blogging is becoming a powerful tool to not only attract and engage new customers but also to build brand authority and ultimately grow your brand.
This comprehensive guide will equip you with the essential knowledge and strategies you need to start and succeed in the dynamic world of business blogging.

How to Protect Your Merchandise From Theft

How to Protect Your Merchandise From Theft

Protecting your merchandise from theft is a critical aspect of running a successful business. In a world where security threats are ever-present, safeguarding your inventory is essential. Not only does it protect your bottom line, but it also ensures the safety of...

Experts You Need to Have at Your Business

Experts You Need to Have at Your Business

In the dynamic world of business, having the right team of experts is not just beneficial; it is essential for success and growth. For female leaders who are carving out their paths in business, marketing, or HR, knowing which experts to have on board can make a...

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

As a woman in a medical workplace, you have a lot of responsibility, not just to yourself but to other women who will come along after you. Asserting yourself in your workplace and gaining the respect of other employees and leadership is essential to a successful career. You have worked hard to get where you are, you don’t want to lose momentum.

Continue to grow with online leadership training and more. Follow these tips to assert yourself in the medical workplace.