How much should we contribute to our benefits package?

Some employers prioritize recruiting and retention by contributing more toward employee premiums. Others need to balance benefit costs with wage increases, retirement contributions, or other investments in their workforce. Neither approach is inherently right or wrong—they’re simply different business strategies.

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The better question isn’t, “How much should we contribute?”

It’s, “What are we trying to accomplish?”

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Once that answer is clear, we can model different contribution strategies and show how each one affects your budget, employee payroll deductions, participation, and the overall value of your benefits program.

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Our goal isn’t to recommend a percentage. It’s to help you understand the tradeoffs behind each approach so your contribution strategy supports both your business objectives and your employees.

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The best contribution strategy isn’t the one that follows a rule of thumb. It’s the one that’s intentionally designed for your organization.

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