Small business owners have a lot on their plates, but there are some areas of operations that can’t afford to be neglected or left to chance. One of these areas is overseeing employee benefits. The right benefits package can attract highly qualified and talented employees, and by avoiding employee benefit mistakes, you can keep your employees motivated and your company out of financial trouble. Here are some of the most common mistakes small business owners make with their employee benefits management.
7 Key Mistakes
- They let their employees shop on the individual market rather than providing group insurance plans.
- They choose their contribution based on the cost of the insurance premium, rather than setting a dollar amount per employee.
- They manually administer benefits rather than using an automated tool to make sure all entries and payouts are accurate.
- They don’t offer voluntary benefits like dental or vision plans.
- They don’t offer consumer-driven accounts like a Health Savings Account or Flexible Spending Account to control costs and save employees money.
- They don’t (ignorantly or purposely) comply with government compliance regulations.
- They don’t work with a qualified broker than can ensure compliance, navigate the paperwork, and mediate between the carrier.
Making a mistake with your employees' benefits administration can cost a small business thousands of dollars. Avoiding these mistakes can reduce these liabilities, just as carrying the right insurance plan can help mitigate the financial loss.