As employers look to reduce spending, many are slashing essential worker benefits like 401(k) plans, health insurance, and tuition assistance. However, experts warn against indiscriminately axing the costliest perks employees rely on. They say a better strategy is identifying underutilized offerings to cut and reallocating those dollars toward in-demand benefits.

Soliciting Employee Input is Crucial

The key to crafting an optimized benefits package is actively gathering and incorporating employee feedback, say human resources experts. This data allows companies to invest resources in the most impactful benefits.

Experts advise that robust communication channels like training, webinars, and benefits fairs should be leveraged not just to share information but also to solicit worker insights on needs and preferences. It’s critical to give employees a voice in determining what’s working, what’s not, and what they require, and then focus spending on solving those most pressing issues.

One-Size-Fits-All Approach Obsolete

With today’s multi-generational, diverse workforces at varying life and career stages, a one-size-fits-all benefits approach falls short. Employee feedback illuminates differing priorities across demographics.

At one large Miami healthcare employer, worker input revealed $200 million in total student loan debt. The company responded by contributing toward monthly loan payments, freeing up worker income for expenses like housing and transportation.

Utilization Data Can Spotlight Underused Perks

Just as feedback highlights benefits gaps, it can also expose offerings no longer valued or used. One employer nixed an underutilized pandemic- era backup childcare benefit after learning it was no longer needed.

Experts stress analyzing utilization metrics along with gathering qualitative feedback to pinpoint areas to cut.

Balance Broad and Tailored Offerings

While investing in standard benefits like health coverage and retirement remains important, experts recommend a balanced approach, allocating some dollars toward specific needs identified through employee insights.

A Miami healthcare provider, for example, boosted minimum wages and implemented tiered health plan contributions to support lower-wage staff — a need surfaced via feedback.

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Copyright © 2024 Smarts Publishing. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.