Our small business clients often tell us they want to offer meaningful benefits but aren’t sure where to start or what they can realistically afford. Below, we’ve shared the introduction to our Employee Benefits for Small Businesses toolkit, covering why benefits matter and how smaller employers can use them to compete for talent. In over a century, we’ve seen that a thoughtful benefits package is one of the most powerful tools a small business has.
Introduction
Employee benefits are perks that workers receive in addition to their normal wages and salaries. They can contribute significantly to employees’ overall well-being, job satisfaction and productivity, all of which ultimately affect an employer’s bottom line. They also play a crucial role in attracting and retaining talented workers.
Although creating a benefits package may seem daunting for small businesses competing with larger organizations, these employers can remain competitive by understanding employee wants and needs and tailoring benefits plans to meet employee desires.
This toolkit serves as a guide to employee benefits for small businesses. It outlines benefits requirements for smaller organizations and optional benefits programs that these businesses can use to attract talent. Furthermore, this toolkit summarizes the different strategies employers can use to select, implement and evaluate their benefits packages.
The Importance of Employee Benefits
A comprehensive, impactful benefits package shows employees that their employer values them, which can help increase motivation and job satisfaction. Depending on the benefits offered, such as health insurance and wellness programs, employees may also experience improved health, translating to fewer missed workdays, increased productivity and reduced stress. These benefits may contribute to a positive company culture and happier, more focused workers.
Workers who are satisfied with their benefits packages are less likely to search for positions at other companies. This improves employee retention and reduces turnover costs. In fact, a recent Forbes survey found that 40% of employers say employees leave their jobs to find better benefits. Thus, a robust benefits package may also help employers attract new job candidates.
It’s important to be aware that certain employee benefits are required at the local, state and federal levels. Small businesses should consult a legal professional to ensure compliance with benefits regulations.
Why Employee Benefits Are Crucial for Small Businesses
Small businesses often have limited resources and budgets compared to large enterprises. For this reason, small businesses may struggle to compete for talent with larger organizations that can offer higher salaries and wages. Fortunately for employers of small organizations, many Americans consider benefits as important as total financial compensation. A study by the Association of International Certified Professional Accountants found that 80% of Americans would choose a job with benefits over a job that offered 30% more salary with no benefits.
Additionally, having fewer employees enables small businesses to tailor their benefits directly to the needs of their employees, a strategy larger organizations may not be able to implement. This presents a unique opportunity for small businesses looking to stand out in the job market.
The full toolkit goes on to cover mandatory and voluntary benefits, how to assess your business’s needs, and how to implement, communicate and evaluate your plan. Want to walk through it together? Explore our employee benefits services or reach out to our team. No pressure, just a conversation about what makes sense for your business.
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