Optimizing your employee benefits program: A guide for HR leaders

About the author: Kathleen Davin is the Director of People Operations at Maven. In her role, she focuses on building intuitive and progressive rewards, systems, and programs for employees. Kathleen previously led benefits programs at Harry’s and Union Square Hospitality Group. She is a graduate of Cornell University and holds her Group Benefits Associate designation from the International Foundation of Employee Benefit Plans.

Working in the benefits space for nearly a decade has taught me one thing—there’s truly no better way to improve recruitment and retention than an employee benefits program. And I’m not just talking about compensation or legally required employee benefits. Everything from health insurance to family support to paid leave policies affect whether your employees decide to stay or go.

To put it in numbers, a recent survey we ran here at Maven found that 57% of employees have taken, or might take, a new job because another job offered better reproductive and family health benefits. 

I’ve seen my benefits peers continue to expand their benefits ecosystems, encompassing everything from fertility care, remote work (continuing beyond COVID), flexible schedules, extended parental leave, autoimmune disease support, and other perks—all to attract and retain the best talent while improving employee morale and well being.

If you’re new to the benefits space or looking to expand your employee benefits programs beyond the basics, here’s what I’ve learned over the course of my career about building best-in-class benefits. 

Why are employee benefit programs important?

It may seem like common knowledge, but experience has shown that better benefits can make a massive difference to your workforce. They’ve helped me:

Attract and retain Gen Z & millennial employees

Simply put, providing the basic medical, dental and retirement package isn't enough. 

With Gen Z entering the workplace, I’ve seen the demand for better employee benefits will continue to increase. In a U.S. Employee Benefit Trends report, 57% of Gen Z employees surveyed said they would be “more successful at a company that offered progressive benefits.” Millennial employees feel the same: one study found that 65% of millennials who resigned would have stayed at their former employer if they had a more robust 401(k) plan.

If you’re curious about the kind of benefits Gen Z is looking for, our content leader Megan Duffy recently did some research into the top requested benefits from this generation, which include mental health support, well-being support, and flexible schedules. 

Build a more inclusive and diverse workforce

Even as DEI faces political backlash, I’m still invested in our DEI efforts here at Maven and view our benefits ecosystem as a primary way to create a more inclusive and diverse workforce. This viewpoint can touch all aspects of benefits strategies: For example, employees with physical disabilities may find it easier to work remotely. LGBTQIA+ employees who want to start or grow their families may request financial resources that cover the cost of fertility treatments, adoption, or surrogacy.

I like to walk through a checklist for inclusive benefits when vetting potential vendors to ensure that they’ll positively support the diverse needs of employees at my company.  

Types of employment benefits I’ve implemented

As you know, there are federal and state-mandated benefits organizations must provide their employees in the U.S., and these mandates can depend on the company size and industry.

At the most basic level, most employers must provide their full-time employees with statutory benefits including Social Security and Medicare, workers' compensation and unemployment insurance, disability insurance, retirement plans, and Family and Medical Leave (FMLA) protections.

On top of this, benefits leaders will bring on additional benefits like fertility benefits, tuition assistance, and life insurance. These aren't mandatory but I’ve seen them be an effective way to retain employees, boost productivity, and provide further financial security aside from an employee's wages.

The most popular types of employee benefits I’ve seen offered by organizations commonly fall into the below categories.

Health insurance and wellness benefits

Health benefits are one of the main components of an employee benefits package. Ensuring you have comprehensive and accessible benefits are vital to employee satisfaction and have a measurable impact on productivity, motivation and a company's bottom line.

• Health insurance: Subsidized medical/health insurance for employees and their families can significantly reduce the financial burden for care by covering medical expenses, supporting healthier employees overall.
• Eye and dental insurance: As with medical insurance, this lessens the financial burden on employees and can lead to better health outcomes for your employees.
• Wellness programs: This catchall category can cover a wide array of benefits. I’ve vetted programs that include  smoking cessation, gym memberships, mental health support, employee assistance programs, and stress management. My goal when implementing benefits like these is to support an employee's whole health above and beyond basic medical care, and dental, eye and health insurance, often with a focus on work life balance, mental health and overall well being.
• Disability insurance: Employees have basic disability insurance and protections through Social Security, but I recommend extending offerings such as short term disability insurance or life insurance benefits. 

Retirement benefits and financial planning

The financial side of an employee benefits package is as important as health and wellness. Throughout my career, I’ve felt a certain level of responsibility for the financial wellness of my company’s employees, and research shows that 97% of employers feel the same way. Helping your employees save and plan for their financial future is another way to show your willingness to make long-term investments in your employees and demonstrate your care about their future. 

Financial and retirement employee benefits may look different for each organization, but the most common pension plan for for-profit organizations is a 401(k) program, which has favorable tax benefits. Eligible employees can invest wages into a fund without paying taxes. I also encourage employers to contribute on top of an employee’s contributions as well.  

Many companies also offer life insurance plans where an employee's family and dependents would receive financial security should the employee die during employment.

Bonuses and commissions

Certain employee benefits, such as health insurance, are usually indirect, meaning they do not include monetary compensation. However, two additional benefits are directly tied to compensation: Bonuses and commissions.

Usually, this plays out in two different ways: Commissions can be focused on an individual sales or recruitment target, while bonuses generally tend to be based on the entire organization's health. 

Here at Maven, we also offer our “What It Takes” awards, where we have employees nominate their peers who embody our core company values. Winners receive a bonus and company-wide recognition. 

Paid time off 

It likely goes without saying that paid time off, or PTO, may be one of the most important components of your employee benefits package. 

• PTO looks different at every organization. You may have a general bucket for sick time and personal leave, or offer unlimited PTO. Holidays, including federal and state holidays, can also impact your PTO policy.
• Paid parental leave, such as maternity or paternity leave, is another type of PTO, but should fall outside of the company's standard PTO policy. I encourage companies to offer the same paid parental leave to birthing and non-birthing parents, as well as those who adopted a child or have a child through a surrogate, to allow for essential bonding time with their new child. 

Reproductive and family health benefits

Family health benefits are an integral part of the benefits strategy at organizations I’ve worked for. Our research team here at Maven recently ran a survey of over 1,200 benefits leaders, which found that two-thirds of employers plan to increase their family benefits investment in the next two to three years. 

Says Jackie McNeil, the VP of U.S. Benefits at Deutsche Bank: “Employee wellbeing is one of our top priorities. Women’s and family health benefits empower our colleagues to focus on their families and themselves while enabling them to bring their whole selves to work.”

I usually recommend that reproductive and family benefits include the following features: 

• Virtual, on-demand access to women's and family health specialists like OB-GYNs or doulas to fill gaps in traditional, in-person healthcare (here’s how it’s leaving women and families behind). 
• Access to online classes, clinically-vetted content, and peer communities to teach employees how to advocate for themselves during their reproductive health journey.
• Financially supporting employees' family health needs, offering reimbursements or coverage for fertility treatments, fees associated with adoption and surrogacy, egg freezing costs, and more.

A particular benefit in this space that’s particularly hot (sorry) right now is menopause support. A Biote report from 2022 found that 20% of people experiencing menopause have resigned from their job or considered leaving due to their symptoms. Additional paid time off, virtual access to medical professionals, menopause education, or even a dedicated wellness space can help employees navigate this period in their lives.

The content team here at Maven recently collaborated with industry leaders to put together this report on how to better support employees as they experience menopause. 

Other personalized benefits and perks

The world of employee benefits is very broad, and if your inbox is anything like mine, it’s likely full of new and innovative benefits companies that want to bring their offerings to your employees. Some of the ones I’ve seen or implemented in the past include: 

• Benefits for those with pets including food discounts, 24/7 vet appointments, walking and care services, and pet insurance plans.
• Work life balance benefits such as remote working, a flexible work schedule, and job sharing.
• Commuter benefits such as subsidized public transport and cycle to work programs.
• Educational benefits that improve the employee's skills and career opportunities such as mentorship programs and enhanced training, or tuition reimbursement to help cover the cost of a course taken during employment.

How I’ve built best-in-class employee benefits program 

No two benefit programs are the same—every company that I’ve worked for has had different goals, focuses, culture, and budgets. When deciding which benefits to implement, I find it’s helpful to go through the following steps: 

1. Identify organizational needs

Why do you need to offer these benefits? Zero in on your prime objective for creating or updating your organization's employee benefits offerings. Perhaps you've noticed a downward trend in retention, or your industry is evolving and you want to keep up with the trends. Identify what your organization needs to accomplish and delineate between the “must-haves” and “nice-to-haves.”

2. Understand employees' needs and preferences

Every employee won't have the same needs, but taking the time to determine any specific trends can help the decision-making process. Are more employees asking for family-building support? Or perhaps you've noticed an upward trend in employees wanting to work remotely. Understanding what your employees value and prefer is necessary as you develop a personalized benefits package.

My biggest piece of advice? Ask them. Employee feedback is a critical component of providing effective, personalized employee benefits. Anonymously surveying your employees empowers them to give honest and helpful feedback. Surveys I’ve run in the past have shown me that a current benefit isn't serving the majority of the population or that I have a gap that needs to be filled.

3. Research & select the right benefits

There are many benefit providers, and the choices can be overwhelming. I’ve used this checklist and sent it to my peers to help evaluate each vendor. It’s an extended process, but going through the checklist has saved me time and money in the long run by helping me find vendors that are fully aligned with our goals and vision.

4. Evaluate cost-effectiveness

I know we all dream of a world where we have unlimited employee benefits budgets, but until then, we have to think about cost. When looking at benefits, I always look at the effect that they’ll have on my company’s short- and long-term financial health. I generally opt for a more comprehensive benefits solution, which minimizes the number of vendors I have to manage and tends to drive higher ROI. 

"We're trying to control costs with a real focus on quality and the VOI (value of investment)," said Juli Galloway, Vice President of Global Benefits at AT&T, during a recent webinar. "We pay attention to the data to guide us and try to streamline and simplify wherever possible. We want to make it as easy as possible for our employees to access the care they need, which ultimately leads to that return on investment or value on investment."

5. Communicate the benefits program to employees

In my opinion, there are few things more frustrating than bringing on great employee benefits and having utilization be low. Effective employee communication is sometimes overlooked, but can make all the difference. I included some of the emails I use to communicate new benefits during open enrollment in this toolkit, but if you are adding benefits, it may be helpful to set up additional touchpoints. 

I like to host benefit office hours where you answer employee questions or informational sessions in partnership with your benefits vendors. Our financial benefit vendor, for example, hosts regular webinars throughout the year to educate employees on everything from stock options to investing. 

6. Evaluate the effectiveness of your employee benefits offerings

Once you have established your employee benefits program, you’ll have to show that they’re effective and worth a continued investment. Regularly evaluating our benefits options helps me determine several things: employee satisfaction, employee engagement, and the ROI of our benefits programs. A few few evaluation methods I’ve used throughout my career include:

• Employee surveys: Asking employees is often the best way to determine what's working for them. An annual or semi-annual survey allows you to review responses and make necessary program changes.
• Focus groups: Live feedback gathered through focus groups can also be helpful, as they allow time for conversation and more in-depth, qualitative feedback.
• Measure engagement: What good is a benefit if nobody uses it? Regularly evaluating how much employees use their benefits can help manage costs and gauge employee satisfaction.
• Track health outcomes: Another way you can measure the effectiveness of your benefits is by looking at the health outcomes for your employee population as a whole. Your benefits vendors can help you measure and track outcomes data while staying compliant with local and federal data privacy laws. 

How Maven can help you develop an effective employee benefits package

Creating an effective employee benefits program can be daunting, but you don't have to do it alone. Here at Maven, we can be a valuable partner for your employees' family and reproductive health needs.

We offer an integrated platform that provides clinical, emotional, and financial support all in one place. From fertility and family building support to maternity, parenting and menopause, we provide a suite of employee benefits that support your employees to navigate multiple stages of life whilst thriving in their career.

Our benefits experts would love to chat with you more about how we can partner together—you can get in touch with them here.