Reviewing and Updating Employee Benefits: Preparing for the Next Fiscal Year

As the fiscal year draws to a close, nonprofit organizations face a critical task: reviewing and updating their employee benefits packages. This is more than just an administrative necessity—it's an opportunity to ensure your team feels valued and supported while aligning your benefits strategy with your mission and budget. By taking a proactive approach to employee benefits, you can attract and retain top talent, reduce turnover, and strengthen your nonprofit's culture of care.

In this blog, we’ll explore how nonprofits can effectively review and update their employee benefits, preparing for the next fiscal year with confidence and compassion.

Why Reviewing Benefits Is Important

Nonprofits operate in an ever-changing environment, often with limited financial resources. Reviewing employee benefits each year helps ensure you’re making the most of what you offer, keeping up with trends in the sector, and addressing your employees’ evolving needs.

Employee expectations are also shifting. Many workers now prioritize benefits such as mental health support, flexible work options, and professional development over traditional perks like higher salaries. Regularly revisiting your benefits package ensures that your organization remains competitive, even if you can't always offer the highest wages.

For nonprofits, reviewing benefits can also help identify ways to better serve employees while being financially responsible. Finding the right balance between employee well-being and budget constraints is key to fostering a positive workplace culture.

Steps to Review and Update Employee Benefits

1. Assess Current Benefits and Employee Feedback

Start by evaluating your current benefits package. This includes looking at traditional benefits like health insurance, retirement plans, and paid time off, as well as any additional perks you offer, such as wellness programs or educational assistance.

Don’t just rely on your own assessment—seek feedback from your staff. Send out an anonymous survey or hold focus groups to learn what benefits they value most and which ones they feel are lacking. This direct input will give you a clear picture of what’s working and what needs to be improved.

Example questions to ask in a survey:

• How satisfied are you with the current health insurance options?

• What additional benefits would you find valuable?

• How important are flexible work arrangements to you?

• Are there any benefits you currently don't use or find unnecessary?

2. Benchmark Against the Sector

It’s important to see how your benefits compare to other nonprofits, especially those of a similar size or mission. Research sector standards using resources like nonprofit industry surveys or consulting peers in your network. What are similar organizations offering? Are there emerging trends that could enhance your benefits package?

This benchmarking will help you stay competitive in attracting and retaining employees, especially if you can’t match for-profit salary levels. Even small tweaks to your benefits could make a big difference in your team’s satisfaction.

3. Prioritize High-Impact Benefits

With feedback from employees and knowledge of sector standards, you can now identify which benefits to prioritize. Focus on those that have the highest impact on employee satisfaction and well-being. Health insurance, retirement savings plans, and paid time off typically top the list, but don’t overlook less traditional benefits.

Some high-impact, low-cost benefits include:

• Flexible work options: Offering remote work or flexible hours can be a game-changer for employees seeking better work-life balance.

• Mental health support: Access to counseling services or wellness programs can help reduce stress and increase productivity.

• Professional development: Offering opportunities for skill-building, training, and education shows employees that you are invested in their growth.

Prioritizing these benefits ensures that your package supports both employee well-being and your organization’s financial health.

4. Review Legal and Compliance Considerations

Don’t forget to review the legal and compliance aspects of your benefits package. Ensure that your benefits meet state and federal regulations, including any changes that may have occurred in the past year. This is especially important for health insurance, retirement plans, and paid leave policies. Consulting with legal advisors or trusted partners in employee benefits can help ensure compliance and avoid any potential legal pitfalls.

5. Communicate Changes Clearly and Effectively

Once you've made decisions about your benefits package, it’s time to communicate these changes to your staff. Effective communication is key to ensuring that employees understand what benefits are available to them, how to access them, and what changes have been made.

Consider holding an all-staff meeting to go over the updates, followed by written communication that employees can refer to later. This could include a benefits guide, a dedicated section on your internal website, or even short videos explaining specific benefits.

Make sure to emphasize why changes were made and how the new benefits support their overall well-being and professional growth. Clear, transparent communication fosters trust and shows employees that their input is valued.

6. Partner with Trusted Resources

Revamping your employee benefits can be a complex task, but you don’t have to do it alone. Partnering with trusted resources, like CalNonprofits Insurance Services, can help ensure you offer a well-rounded and competitive benefits package that aligns with your organization’s mission and financial goals. Whether you’re updating health insurance, adding new wellness programs, or adjusting retirement plans, we can help you find solutions that meet your specific needs.

Conclusion: Looking Ahead

Reviewing and updating employee benefits is not just about making adjustments for the sake of it. It’s about creating a benefits package that truly supports your team, enhances job satisfaction, and strengthens your nonprofit’s ability to fulfill its mission. As you prepare for the next fiscal year, take the time to assess, prioritize, and communicate changes thoughtfully—your employees will thank you for it.

By focusing on what matters most to your team, you can build a benefits package that aligns with your nonprofit’s values, engages your staff, and ultimately, sets your organization up for success in the coming year.

If you're ready to explore ways to improve your benefits, CalNonprofits Insurance Services can guide you through the process, helping you offer the best possible options for your employees and your organization.

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