Value of a Needs Assessment when Developing Employee Benefit Plans

A Charleston, South Carolina based employee benefits specialist with experience spanning over two decades, Brandon Guest is currently the area president of Gallagher Benefit Services Inc., a leading nationwide employee benefits advisor. During his career, Brandon Guest has gained expertise working closely with clients in South Carolina to help them develop and manage compliant and cost-effective employee benefit programs.

Managing employee benefits is an important aspect of any organization that is keen on the welfare of its employees. Even though there are mandatory and statutory benefits, employers should go further and consider other benefits for their employees. Employee benefits programs vary according to the nature and needs of an organization. To have a successful employee benefit plan, employers should conduct a needs assessment that considers both employee needs and employer objectives. A needs assessment should include how an employer perceives their employee benefits, prevailing tax laws and regulations as well as competitor’s benefits practices.

In addition, during a needs assessment, employers should evaluate a current employee benefits plan and determine how it’s being utilized. Knowing how frequent a benefit is used and to what extent helps employers to formulate the best cost-saving practices. When carrying out a needs assessment, organizations should analyze the existing workforce demographics to help identify the needs of each employee category. For instance, while younger employees may be keen on paid leave, older employees may prefer more focus on retirement income plans.