A competitive employee benefits package is crucial for any small business to attract and retain top talent. While small businesses may not have the resources of larger corporations, they can still create competitive offerings by prioritizing employee needs and leveraging creative solutions.
Explore how to set up an attractive employee benefits package as a small business that will help you stand out as an employer of choice without running out of budget.
Understand Your Resources and Budget
Before diving into the world of benefits, it’s important to understand what your limitations are. Determine what budget you have available to allocate to employee benefits. Keep in mind your budget doesn’t need to stay the same. In fact, as time goes on and your business grows and changes, it will likely change—and so will your benefits package.
Understanding what you have to work with will help you provide quality and potentially unique benefits packages without breaking the bank.
Know What Your Employees Want
If you’re looking to attract or maintain a certain kind of employee, it’s crucial to understand what kind of benefits they are actually looking for. Consider the demographics of your desired workforce and what their preferences may be. A benefits package tailored to the needs of your employees will be more appreciated and effective than a generic, traditional plan may be.
By understanding what exactly your employees are looking for, you’ll be able to create a uniquely competitive benefits package. You may even find that cheaper, non-traditional benefits are more sought after than potentially out-of-budget benefits like retirement plans. For example, Generation Z employees place a high value on work-life balance, meaning flexible scheduling options are more of a priority to them.
The easiest way to know what benefits your employees value is to ask them. Consider conducting surveys or group interviews of your current employees to see what benefits they are most appreciative of and what they would like to have in the future. This can also show you what benefits you may be offering that your employees don’t use.
Offer a Variety of Unique Benefits
While there are some types of benefits, such as healthcare, that may be required for your company, you can utilize other more unique benefits to create a competitive and attractive benefits package. For example, voluntary benefits such as Flexible Spending Accounts (FSA), Paid Time Off (PTO), and dental coverage can give your package the competitive edge it needs to attract quality employees.
Likewise, consider other services and employee wellness programs you can offer. These are more unique forms of benefits that focus more on the general welfare of your employees.
For example, you could leverage membership in professional organizations or industry groups that offer discounted health insurance or retirement plan options for small businesses. Similarly, consider partnerships with local gyms or coworking spaces to provide employees with access to these facilities at a reduced cost or even for free. By tapping into these unique benefits, you can offer value-added benefits without significant financial strain.
Continually Review and Update
Again, your business is likely to change over time—and so should your benefits package. Regularly review what benefits you offer to ensure that what you are providing is beneficial to your employees. As your business, preferred employee, and budget change, be sure to update your benefits package in order to stay competitive.
By understanding how to set up an attractive employee benefits package as a small business, you can help your company attract and retain top talent. Investing in your employees’ well-being is an investment in your company’s future success.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.