The third danger that small business owners face are rigid benefit structures imposed by suppliers.
A rigid benefit structure is designed to meet the financial and administrative needs of the supplier and is not customized to your unique needs.
Benefit suppliers often package their most profitable products with their most popular ones. For example, your employees might only be interested in health coverage but most benefit suppliers will require you to also purchase life insurance. Another approach often used by suppliers to include coverage that has not been requested. For example, some suppliers package accidental death and dismemberment insurance with life insurance, or an employee assistance program with health insurance.
You could end up wasting money and confusing employees with irrelevant products if you are not sure what benefits you want and why you want them.