ere are three checklists for HR as it makes decisions on what voluntary benefits to offer employees.

What HR Should Look For:

• Will the selection expand benefit offerings to employees and their families without direct cost?

• Will the benefit provide tailored financial solutions that complement existing sponsored plans?

• Will it assist in building retention and loyalty?

• Will it create a higher level of appreciation and awareness of company-sponsored plans?

• Will it assist HR as it redirects employees away from the idea that the employer is the lone provider of all benefits?

What Employees Will Look For:

• Is the benefit clearly defined so that employees know what they’re getting 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 insurance companies and elective-benefit firms to coordinate the program. This becomes more crucial when the company has facilities in several states. Here are some things to look for:

• Insurance providers should be highly rated by respected financial rating services such as A.M. Best, S&P, and Duff & Phelps.

• Insurance providers should be able to demonstrate strong customer-service policies.

• Providers should have a commitment to high-quality internal or third-party administration.

• Elective-benefit specialists also should have a strong record of customer service and post-enrollment support.

• They should be able to administer the program electronically. Do the elective-benefit specialists have technology partners that understand data integration? This is a must for smooth administration.

Workforce, March 2002, p. 44 -- Subscribe Now!