Benefits Package from Scratch!

HR Newbie

Thanks to everyone who has pointed me in the right direction! I have been tasked with creating a whole new benefits package for a staff of 27. We don't have ANY benefits in place right now, and it's questionable as to how many employees will participate given the general cost (never having had benefits, they have no idea how expensive they can be!). Does anyone know of any good websites that can help me get started? Budgetary constraints will not allow consulting as an option, and I am the only HR person here. Thanks!

PMI

For our medical & dental insurance we use a broker. She researches products available, solicites bids, and makes recommendations regarding the best package to purchase. The service is free because she collects a sales commission from the carrier.

We also work within trade and business organizations to which we belong. In this way we can pool with other similar companies, increasing our purchasing power. For instance we buy our long term disability and life insurance through a pool of New England mutual insurance companies. Good Luck!

Janet

I would also suggest using a broker. There are so many products available and so many regulations that it's the safest way to go. You can also learn a lot from a broker, if you get a good one.

Margaret Morford

I think a broker could be a great help given your situation, but be sure to ask lots of questions. Brokers tend to recommend the products that they get the best commissions or perks on. Make sure they give you rates from five different companies. Don't be afraid to ask the broker what commission he/she makes on each product. Also because of this, some companies chose to pay the broker for their time so that they get rates that do not include a commission. You pay for his/her services up front rather than escalated rates each month in the form of premiums.

Reagrdless of the direction you go in, do not let anyone take you self-insured. Your group is too small and it would be financially risky to do so. You can also hold down costs by excluding certain things from the package.

Hope this helps. If you need more information, do not hesitate to call me at 615-371-8200.

Margaret Morford
theHRedge

DeeAnn

Why not look into a PEO? Some will provide benefits only or payroll/benefits/work comp and you may find this to be less expensive than doing so independently. The best aspect is that it is administered for you and the buying power is unbeatable.

CuriousG

The others who have replied are correct, you need to deal with an independent isurance broker (not a stock or commodities broker.) Be sure the broker you select has extensive experience with design, installation and administration of employee benefits (some focus on financial planning products, life insurance, or casualty coverage.)

I would interview several brokers from your area. Treat this just like you were going to hire an employee. You want to know they are dependable, knowledgible, and that you can communicate easiliy with them. You also want to know how much support they are going to commit to give you when it comes to installing (communications, presentations, and enrolling) the products they sell you.

Good luck!