<aside> What’s this about? Providing benefits is an important way to look after your staff, and helps with both retention and recruitment. In the US, private healthcare is the most important, complex, and expensive benefit to set up.
What do I need to do? Decide which benefits you want to offer staff. Then, liaise with brokers to get quotes from benefits providers, and choose which plans are most suitable given your budget and risk appetite.
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Templates
Providing benefits is an important way to look after your staff, and helps with both retention and recruitment.
Common benefits include healthcare, vision, dental, and retirement planning / 401(k), but there are several other benefits worth considering depending on the size of your team and your appetite for risk.
The following insurances are considered staff benefits as they make employment at your organization more appealing.
For other insurances, like Directors and Officers (D&O) insurance or employers’ liability insurance, see Obtain business insurance.
| Protects staff against… | Suitable for… | Approximate cost | |
|---|---|---|---|
| Healthcare | The cost of healthcare claims, such as visits to the emergency room, appointments with primary physicians, or lab tests. | All workforces | $1,000 per employee per month |
| Dental | The cost of dental work, such as orthodontics, endodontics, or periodontics. | All workforces | $100 per employee per month |
| Vision | The cost of equipment and tests relating to vision, such as frames, contact lenses, and eye exams. | All workforces | $15 per employee per month |
| Short-term disability (STD) | A portion of employees’ salaries (typically 60%) in the event that they’re unable to work for a number of weeks. | All workforces | $30 per employee per month |
| Long-term disability (LTD) | A portion of employees’ salaries (typically 60%) in the event that they’re unable to work for a number of years. | All workforces | $30 per employee per month |
| Paid parental leave | A loss of income in the event of pregnancy and childbirth. | All workforces | n/a |
| Retirement planning | Allows employees to invest a portion of their earnings into a 401(k) retirement fund. | All workforces | $5 per employee per month. Monthly cost per employee is typically accompanied by a minimum annual fee for the employer of approx. $500. You may also consider a 2%–4% match of the employee’s savings (optional, but increasingly common for retaining talent). |
| Protects staff against… | Suitable if… | Approximate cost | |
|---|---|---|---|
| Life insurance | The unexpected death of an employee. Support dependents of said employee, typically with a cash payout equivalent to 1–2 years’ worth of the employee’s salary. May also cover accidental dismemberment (and sometimes referred to collectively as “Life/AD&D”). | Staff with dependents or in high-risk industries | $15 per employee per month |
| Fertility | The cost of fertility treatments and resources not covered by a healthcare provider, such as egg freezing, ovulation induction, and adoption. | Staff planning to start or expand their families, particularly those in the 25-40 age range | Varies significantly: ~$1000-$5000 per year for basic coverage like diagnostics and tests, $10k-$50k per year for comprehensive services like IVF |
| Professional development allowance | An annual stipend for staff to spend on tools and resources to accelerate their professional development. | Staff looking to upskill in order to take on more responsibility | Determined by you ($500–$5,000 can be typical) |
| Wellbeing allowance | An annual stipend for staff to spend on tools, resources, and medication not otherwise covered by a healthcare plan (e.g. therapy, a gym subscription, or a mindfulness app). Note that this kind of benefit will always be taxable, and often you shouldn’t directly reimburse medical costs (such as therapy). | Staff in high-stress roles or those with a focus on maintaining a healthy work-life balance | Determined by you ($500–$5,000 can be typical) |
| Equipment allowance | An annual stipend for staff to spend on devices or ergonomic equipment to improve their productivity (e.g. a laptop, mouse, or standing desk). | Staff working remotely or requirement specialized equipment (e.g. software developers or engineers) | Determined by you ($500–$5,000 can be typical) |
| Childcare allowance | An annual stipend for staff with young children to spend on childcare needs (e.g. babysitting or travel). | Staff with young children | Determined by you ($500–$5,000 can be typical) |
When it comes to sourcing quotes, we recommend using a broker.
A broker is a person or company that arranges transactions between your organization and an insurance provider. Brokers may receive a commission from the provider when a transaction succeeds, or they may charge a fee for their service.
Some brokers are able to source quotes from providers across a range of insurance categories; others focus on specific insurances. And some brokers are able to source quotes across the US, while others focus on specific states.
In order to request a quote from a broker, you’ll want to collate some information about your organization and employees to include in your initial message — a “census.” Using a census [template] will avoid a back-and-forth where the broker requests information that they need in order to source suitable quotes.
Once you’ve put together your census, you’ll want to reach out to a broker.
Sometimes, your HR software may be able to act as a broker between your organization and insurance providers. For example, if you’re engaging an employee via an Employer of Record (EOR), the EOR platform will provide a limited selection of plans that comply with its software. For more information on the relationship between staff benefits and HR software, see Set up an HR system and Engage an employee.
Different brokers are likely to present their plans in different formats.
We strongly recommend consolidating quotes into a single spreadsheet, for ease of comparison. You may also consider color-coding values to facilitate comparison. Here’s a template you can use for comparing healthcare quotes.
Insurance quotes also come with a lot of jargon. On the right, we’ve included some terms you’ll need to understand in order to appropriately compare plans.