Can Employee Benefits Be Too Personalized?

Can Employee Benefits Be Too Personalized?

When creating a group benefits plan for your company, understanding your staff and their needs is essential. Spending big to offer an impressive list of comprehensive benefits that don’t meet your employees’ needs is not only inefficient, but it also fails the most basic purpose of a benefits plan. 

Instead, choosing a personalized employee benefits plan allows you to make the most out of your benefits budget. While tailoring your company’s plan, however, it’s important to be mindful of all the factors at play.

The Value of Personalized Employee Benefits

There are many options available when deciding on the best benefits to offer for your business. From basic extended health coverage to more specific things like mental health or dental plans, it’s up to you to find the right balance of coverage and affordability. 

A personalized employee benefits plan is often the best way to give your staff everything they need and nothing that they don’t. For example, you may choose to cover some conditions that affect your employees, which may not be included in standard extended health plans. Similarly, you may opt to exclude one or more benefits if you know that your staff will not use them. Not only can this save you money, but personalizing employee benefits can be a tangible way of showing that you’re personally invested in your staff. 

Personalized Employee Benefit Risks

As valuable as personalized employee benefits can be, there is such a thing as making your extended health plan too personalized. Perhaps the single most common mistake that employers make when implementing benefits is failing to sufficiently consider the future sustainability of their plans. 

For one, when considering offering a non-standard option such as chronic illness medication coverage, it’s important to remember that the cost of that coverage will be recurring. Even if you can afford it this year, how confident are you that this will still be the case next year? 

Small vs. Large Organizations

Over-personalization is especially common among smaller companies. Often, small businesses will have a handful of steady employees. You may have a close, even personal relationship with some of your staff, so ensuring that they are taken care of is an even higher priority than it may be in a larger organization. 

As admirable as this is, however, tailoring your personalized employee benefits plan too closely to a small group of core staff members runs the risk of excluding or even alienating future hires. Similarly, if the staff in your plan was originally designed for leave or retire, you may be stuck with a plan that is not well-optimized for anyone else. 

Create the Perfect Benefits Plan with Zarmac

Zarmac Benefits has been providing benefit programs to both new and established businesses for over 20 years. We take the time to analyze what you need and customize a benefits package specifically for your business style, now and for the future. 

Zarmac provides critical analysis specific to your business to deliver real choices, advise on trends, streamline renewals, and optimize your plan design. We make it easy for you and your team by supporting the management of your program. We also proactively educate and eliminate questions to ensure there are no surprises.

Ready to protect your business and your team? Find out more about the Zarmac difference!


We have some exciting news at Zarmac Benefits! We are extremely pleased to announce our merger with Marquee Benefits Inc., a highly respected benefit and pension solutions consultant based in Barrie, Ontario. Our newly combined firm will be conducting its practice as Marquee Benefits Inc., effective February 13, 2024.

Marquee Benefits shares the same values as we do. A genuine approach based on extensive knowledge of the industry and genuine desire to help create the right benefit solution for your organization. Please feel free to connect with us if you have any questions.

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