How to Create a Small Business Employee Benefits Package

As a small or recently started business, your budget may be tight, you must make wise, strategic decisions about where to invest. One investment you may want to consider is the implementation of a small business employee benefits package. In the United States, having employer-subsidized health insurance, vision care, and dental care can go a long way in promoting your small business. Also this will help you to stand out among your larger, longer-lived competitors. While offering benefits as a small business may seem costly, the advantages can far outweigh the expenses. It can also help your business to increase its efficiency, attract top talent, and grow exponentially.

The 2021 Aflac WorkForces report demonstrated the tremendous gap that exists between companies that leverage benefits as a part of their business strategy and companies that do not. Approximately 9 in 10 employees of small, medium, and large-sized businesses acknowledge that their need for supplemental insurance is increasing. More than half of American workers view supplemental benefits as a critical component of a comprehensive benefits program.  

In this article, Hitchings Insurance goes over the various benefits of implementing a small business employee benefits package. As well as how to create a package best suited to your workers.

Why Introduce a Small Business Employee Benefits Package?

Offering a comprehensive employee benefits package is a key aspect of attracting and retaining top talent. Benefits demonstrate that you value your employees’ overall health and well-being, in addition to their contributions to your company. Research has shown, again and again, that satisfaction at work increases when employees have access to benefits, and those same employees are much less likely to quit.

Moreover, when you’re offering employee benefits, top talent may be more likely to choose your business. This is valuable to a small business that might be struggling to compete with larger companies. It gives them a better shot at highly skilled individuals.

Employee benefits have been shown to improve productivity as employees are far more effective when their minds aren’t wandering, and worrying about security for themselves and their families. There are reduced stress, decreased burnout, and greater commitment – a win-win for both employers and employees.

What Types of Employee Benefits Should Be Included in a Small Business Employee Benefits Package?

Small businesses can offer many different types of employee benefits packages. It all depends on budget, employee needs, and even industry. For example, for a smaller business that works with young professionals, you may cater your plan towards offering professional development opportunities.

On a similar note, you may prioritize health insurance options, including vision and dental, if you have a lot of employees with larger families who want security for their loved ones. All in all, it pays to be mindful of what your employees are looking for and what they prioritize the most. Ideally, this is much easier in a smaller business, since you would have less of a pool overall to satisfy.

Here are some types of benefits you may want to consider in your small business employee benefits package:

• Paid time off: This includes sick leave, personal time, and, of course, vacation. Offering this benefit ensures that employees can take their necessary time, and get back to working at maximum efficiency. Plus, it reduces stress and burnout.
• Health insurance: Some regulations, depending on your state, may require you to provide group health insurance. Either way, this is probably the most important benefit you can offer. It helps employees to pay doctor visits, hospital stays, medical expenses, and even for any necessary prescription medication. You may also include dental, and vision options.
• Retirement plans: This includes, for example, a 401(k) or IRA, which enables employees the opportunity to plan accordingly for the future and potentially receive employer contributions.
• Flexible scheduling: Giving employees the chance to work remotely or offering flexible hours may reduce stress and improve their work-life balance. Recent studies have shown that remote working options are ranked fairly high on many employees’ “benefits preferences.”

What you offer, as stated previously, will vary. Make sure to go to your employees first when gauging which benefits make the most sense to offer as part of your package.

How to Create a Competitive Small Business Employee Benefits Package

Creating a competitive small business employee benefits package is a matter of understanding your own employee needs and catering your options to what they require. It’s a careful science, balancing their needs and your budget, but it can be done. Here are the steps to creating a great benefits package:

• Create a budget. See what you have room for and what the costs of each benefit will be, multiplying that by each employee you have.
• Ask your employees. What benefits do they value the most? What is needed to be successful at their jobs? Use this information to guide your decisions.
• Consider part-time. Will you be offering benefits to your part-time employees, as well, that can be optionally pro-rated based on how many hours they work? This allows you to show that you value each employee’s contributions regardless of how many hours worked.
• Do your own shopping. You can ask a Hitchings Insurance agent to help you find options for group health insurance, as well as other benefit plans/retirement plans. Compare prices and what each plan offers so you get the best deal.
• Be clear with your employees about eligibility requirements, what is offered, and how they may be able to participate in your plan. Be clear about exclusions and limitations.

All in all, offering a comprehensive benefits package to your employees is an integral aspect of any small business trying to remain competitive with the “big guys.” It can be tough to know how to make a great plan, but luckily Hitchings Insurance has the information you need to get the best options for your business and your employees’ needs.