Here are three checklists for HR as it makes decisions on what voluntarybenefits to offer employees.
What HR Should Look For:
Will the selection expand benefit offerings to employees and theirfamilies without direct cost?
Will the benefit provide tailored financial solutions that complementexisting sponsored plans?
Will it assist in building retention and loyalty?
Will it create a higher level of appreciation and awareness ofcompany-sponsored plans?
Will it assist HR as it redirects employees away from the idea that theemployer is the lone provider of all benefits?
What Employees Will Look For:
Is the benefit clearly defined so that employees know what they’regetting for their investment?
Will it allow for the building of a program based on individual needs,including individual and family protection?
Does it have the convenience of payroll deduction?
Is it affordable for employees and their families?
Does it provide favorable underwriting and qualification?
What HR Should Look for in Elective-Benefit Specialists:
Perhaps the most challenging decision for HR is selecting the insurancecompanies and elective-benefit firms to coordinate the program. This becomesmore crucial when the company has facilities in several states. Here are somethings to look for:
Insurance providers should be highly rated by respected financial ratingservices such as A.M. Best, S&P, and Duff & Phelps.
Insurance providers should be able to demonstrate strong customer-servicepolicies.
Providers should have a commitment to high-quality internal orthird-party administration.
Elective-benefit specialists also should have a strong record of customerservice and post-enrollment support.
They should be able to administer the program electronically. Do theelective-benefit specialists have technology partners that understand dataintegration? This is a must for smooth administration.
Source: Steven W. Helsing,CEO, National WorksitePartners
Workforce, March 2002, p. 44 -- Subscribe Now!