Employee provided benefits are a very important aspect of every employer”™s compensation package. These days, businesses are feeling the strain to pay for all they did before. Instead of providing the staff with a medical or dental plan, tell them what can be afforded and give them coverage options from which to choose. They then can make the decision about where they want to spend their dollars.
As the economic slowdown has taken hold here in Westchester, the quality and quantity of employee applicants has increased dramatically. Business owners need to understand that these people are not bargains that you should try to get cheap. This is an opportunity to upgrade your staff.
We are finding that many employers are looking for low-cost insurance options, but we are cautioning them not to get involved with complicated schemes to save money.
More and more employer groups are using defined contribution plans for their employee benefits and medical insurance, in particular. These cafeteria or menu-based plans allow the employees to put money toward their benefits in many creative ways. This type of plan delivery system allows employers to budget their costs while the employees have a wide selection of choices.
When reviewing your finances and savings, make intelligent choices about your investments. The current market conditions have pointed out that having all your savings at risk is not a wise way to operate. Look toward diversifying into some fixed assets and inquire about principle guaranteed investment programs.
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Norman Michaels is president of Michaels & Associates Inc., an employee benefit consulting and brokerage firm in Armonk. Reach him at (914) 273-4723 or nmichaels@michaels-associates.com.
