Numerous employees in a contemporary labor market report that their companies are not offering benefits. Health insurance persists the most commonly provided at seventy-eight percent, accompanied by dental coverage and retirement plans at less than seventy percent (Greenwald & Fronstin, 2019). However, eight out of ten workers receive a decline when asking for the company’s benefits (Greenwald & Fronstin, 2019).
Thus, to attract qualified workers, companies should have an excellent benefits plan. Even if a business is not significant in size, it should consider bringing more stability to its employees to win their loyalty. For instance, the startup 5miles originated in Dallas, Texas area in 2014 with 34 employees needs to consider adopting benefits for its employees (“5miles”, 2020). This company is particularly interesting as it is a tech startup, and this is one of the most emerging trends in the market. Therefore, such businesses need to learn how to attract skilled developers, and designing a plan is a crucial element to it.
Workers tend to receive various benefits from the companies that they work for, including employment-based and voluntary ones. The technical industry provides fewer benefits than public administration, manufacturing, or healthcare. Therefore, it is vital to introduce a plan that would include health insurance and dental insurance. The insurance plan covering two of these aspects for 34 employees in Dallas would cost around $159 a month per employee (“Blue Cross and Blue Shield of Texas,” n.d.). The health benefits included in the plan cover most medical-related needs, such as annual physical exams, emergencies, and two dental visits per year (“Blue Cross and Blue Shield of Texas,” n.d.). Overall, the plan’s prices can vary slightly so that an employer can choose the most appropriate one.
The company should include a full-time group employment plan. Two parts of the plan are standard; however, Texas does not require small businesses to provide their workers with benefits (“Everything to Know About Small Business,” 2019). Therefore, a small company that provides health and dental insurance offers a unique opportunity for skilled employees. These benefits will attract loyal workers because most employees consider medical and dental care essential (Greenwald & Fronstin, 2019). Furthermore, the company 5miles has many competitors within the Dallas community because mobile applications are a growing and developing type of startups. Therefore, 5miles must ensure that talented workers choose them over any potential competition. Research indicates that workers who do creative or complex jobs seek autonomy (Landry et al., 2017).
A comprehensive benefits package could appeal to the software developers 5miles is looking for because it will allow workers to focus on their responsibilities and not on health and dental concerns. This benefit package needs to allow some autonomy in the worker’s decisions, ultimately letting the employee decide when and how to use the benefits the company provides.
Moreover, the total cost of health and dental insurance for 34 employees, at 159$ per employee per month, is 5406$ per month. The complete compensation package for an average 5miles employee is 60000$ a year (“5miles Salaries”, n.d.), which comes to 5000$ per employee a month. The cost of the benefits package is 3.18% of the total compensation package. Citywide employment rates will affect cost targets, as a decline in unemployment may increase competition for skilled workers. The comprehensive benefits package detailed earlier is focused on attracting and retaining experienced software developers.
The autonomy and security provided by the package act as a safeguard for employee burnout. A review of the plan should focus on local competition, as the plan’s retention works best when it is the most comprehensive in the area. Employees are less likely to leave for a firm with an inferior benefit package, so 5miles must frequently research their competition to compare packages.
The workers in charge of overseeing the benefit packages will use the guidelines of two governmental bodies, the Department of Labor (DOL) and the Employee Benefits Security Administration (EBSA), to ensure the packages used by 5miles meet every legal requirement. Furthermore, these workers will be obligated to be informed about any changes to relevant legal guidelines. The package is generous and comprehensive to cover as many health and dental issues as possible to ensure that every 5miles employee receives the same access to benefits. It covers healthcare aspects that are relevant to both males and females of all races and age groups. This should ensure that no employee feels like another worker is being treated better by the benefit package.
The relatively small size of 5miles coupled with the highly skilled nature of their product makes it easier to justify a substantial benefits package as regularly replacing skilled workers may be more costly in the long-run. Research regarding small and medium employers have the benefit of dynamic capabilities, meaning that smaller companies have an easier time implementing and adapting plans. Conversely, small business capabilities are less extensive than a large business (Rashidirad & Salimian, 2020). For 5miles, this means that managing the initial expenses of a significant benefits package is vital. However, due to its small size, 5miles can quickly adapt the employee benefits to gain a competitive edge in the Dallas market.
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Landry, A. T., Schweyer, A., & Whillans, A. (2017). Winning the war for talent: Modern motivational methods for attracting and retaining employees. Compensation Benefits Review, 49(4), 230–246. Web.
Rashidirad, M., & Salimian, H. (2020). SMEs’ dynamic capabilities and value creation: the mediating role of competitive strategy. European Business Review, ahead-of-print. Web.