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Employee Benefits Questions Every Employer Should Ask
May 06, 2025
Estimated Reading Time: 4m
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Providing competitive employee benefits is smart business for employers, but it can also be a little overwhelming. At PALIG, we work hard to simplify the benefits planning process—as do our local field agents.
To that end, we’ve put together eight essential questions that employers should ask themselves before making benefits decisions, whether purchasing first‑time coverage or making upgrades. But first, let’s begin by discussing why it’s important to work through the process with care.
Why Competitive Employee Benefits Matter
Offering competitive employer benefits isn’t just nice to have a proven talent management strategy and then some. Specifically, a strong employee benefits package:
Helps Attract Top Talent
Quality benefits offerings help employers impress candidates in tight labor markets. One global study found that, while compensation remains the top priority, 49% of candidates also choose an employer based on their benefits package.
Improve Retention
Turnover is expensive. In addition to the cost of hiring and training replacement employees, turnover hurts productivity and morale. The study cited above also found that 54% of employees chose to stay with their employer because they valued their benefits.
Boosts Productivity and Morale
Employees who feel valued tend to show up more, mentally and physically. They’re more engaged at work and experience greater job satisfaction. Studies show that workers equate strong benefits packages with caring employers. And everyone wants to work for employers that care.
Enhance Employer Branding
Beyond employment, consumers prefer to give their business to companies that hold their values. When you take good care of your people, the word gets around, which fosters customer loyalty and strengthens business relationships.
In short, employee benefits play a more essential role in a business’s success than you might think. That’s why it’s critical to be thoughtful and strategic about what you provide for employees.
8 Questions to Answer Before Buying (or Changing) Benefits
Benefits are universally important, but every business has different benefits needs. Answering the following questions will help guide your decision‑making, so you can shape a benefits plan that best fits your business and workforce.
- What Are We Trying to Achieve? Do you see your benefits program stand out in a competitive job market? To retain loyal employees? Or to reflect your company culture? Understanding your “why” will impact every decision you make.
- Who Are Our Employees? Age, life stage, family status and health conditions influence what employees value most—both in terms of the coverages you offer and plan design options. Knowing your team’s makeup can help you achieve a balance of benefits with broad appeal.
- Are There Risks Unique to Our Industry? Not all work carries the same risks. For example, if your employees travel frequently on company business, you may want to focus more on accident insurance. If you own a small business or partnership, key person insurance might be an extra layer of protection that you need.
- What Do Our Employees Want? Don’t just assume that you know what your workforce wants. Ask. If you already offer benefits, find out what employees do and don’t like about them. Whether through surveys or informal conversations, gathering employee input goes a long way to pleasing workers.
- What’s Our Budget? Benefits shouldn’t break the bank. What matters is that you align your offerings with what you can realistically afford. Think in terms of the total picture—sometimes a few high‑impact coverages can be more valuable than an elaborate package.
- Are We Meeting Legal Requirements? Regulations vary widely across countries, industries, and localities. Seek advice about what your obligations may be and that your offerings meet them.
- What Are Our Top Priorities? You may not be able to offer everything right out of the gate, and that’s completely okay. Identify the must‑haves (typically life and health insurance) and create a plan to expand your benefits package over time as your business grows.
- What Do the Benefits Experts Suggest? You don’t need to reinvent the wheel—not when you work with an experienced advisor and carrier that knows your market. At PALIG, we have decades of experience in employee benefits. Your local PALIG agent can offer you expert, personalized guidance targeted to your market.
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