Competitive employee benefits are a valuable resource for attracting and retaining top talent, but for the small business owner, paying for them is a significant hurdle. Giant corporations can afford to offer fancy packages, but small businesses must be creative if they are to stay in the running without going broke.
A solid benefits package enables companies to retain top talent, increases job satisfaction, boosts productivity, and fosters company allegiance. Providing benefits doesn’t have to break the bank—it’s about being strategic, understanding what your employees value most, and finding cost-saving options.
How Competitive Employee Benefits Affects Employee’s Health
Competitive employee benefits, especially those associated with health and wellness, have a positive effect on employee health by alleviating financial stress, facilitating a healthy work-life balance, and stimulating employee’s proactive healthcare choices, which in turn leads to a more productive and healthy workforce.
Here are some of the ways in which competitive employee benefits can have an impact on the health of the people working in an organization:
- Promoting work-life balance.
- Reduces stress about financial security.
- Encourages proactive healthcare choices.
How Can Entrepreneurs Offer Competitive Employee Benefits?
Now that you know about how these Competitive Employee Benefits affect the health of the employees, you might want to know how you can provide them in your business. So, here are some of the things that you can do:
Understanding What Employees Value Most
Before creating a benefits package, it is useful to determine what employees are most concerned about. Although most employees frequently prioritize healthcare, they are also very concerned about retirement plans, flexible scheduling, paid time off, and wellness programs.
A Society for Human Resource Management (SHRM) survey reported that retirement benefits, paid time off, and health insurance are the three most valued competitive employee benefits. Small business owners, though, must be careful about job requirements and generational trends.
By asking workers through surveys or directly in casual conversations, business owners can find out which benefits will work best for their workers at an affordable cost.
Offering Affordable Health Insurance Options
Health insurance is typically the most expensive employee benefit, but small companies can afford it without draining their coffers
- Group Health Insurance Plans: Many health insurance providers have group health insurance plans specifically for small businesses, with flexible coverage and affordable premiums. A few states even offer tax credits to small companies offering group health insurance.
- Health Reimbursement Arrangements (HRAs): HRAs allow employers to reimburse employees for medical bills and insurance premiums rather than providing traditional health insurance. They are flexible and also give employees the power to manage the cost of healthcare.
- Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs): These tax-advantaged accounts allow employees to use them to pay medical expenses, reducing out-of-pocket costs and offering low-cost alternatives for small businesses over traditional health coverage.
- Partnering with a Professional Employer Organization (PEO): PEOs provide low-cost group health insurance by aggregating small businesses to offer purchasing power.
Providing Retirement Benefits Without High Costs
Workers, especially those at high retirement age, value retirement pensions highly. Even though traditional pension schemes are beyond the budget of small businesses, others with less expense are increasing in number.
- Simplified Employee Pension (SEP) IRA: A Type of retirement scheme where employers can make contributions to workers’ retirement savings in proportion with their incomes. It is frugal in terms of administrative expenses and easy to manage.
- SIMPLE IRA: This is a postponed retirement plan for businesses with 100 or fewer employees, to which employers and employees may contribute.
- 401(k) Plans for Small Businesses: Select carriers offer flexible contribution 401(k) plans with employer discretion regarding contributions. This allows firms to offer competitive retirement benefits at a low cost.
Implementing Flexible Work Arrangements
Today’s employees are seeking work-life balance, and flexible work arrangements can be an inexpensive product.
- Remote Work and Hybrid Schedules: Offering a choice between telework or flexible scheduling can enhance worker satisfaction and productivity and reduce overheads for office space and utilities.
- Flexible Hours: Giving employees control of the schedule—i.e., selecting start and end times—boosts personal needs and reduces stress.
- Compressed Workweeks: Offering an alternative four-day workweek or non-traditional scheduling makes work-life balance achievable without reducing productivity.
Offering Paid Time Off and Leave Benefits
Paid time off (PTO) is an excellent morale booster. Although small businesses cannot always afford elaborate vacation benefits, there are a few ways to offer generous leave without going broke.
- Unlimited PTO: Some firms are converting to unlimited PTO systems, and workers put in overtime as needed. This typically translates to fewer days than an accrued system of leave.
- Paid Sick Leave: A paid sick day policy compensates employees for having a healthy workplace and preventing the spread of sickness.
- Family Leave and Parental Benefits: Extended paid maternity or paternity leave is costly, but flexible return-to-work policies, telecommuting, or work sharing can help new parents.
Creating an Employee Wellness Program
A carefully crafted wellness program can enhance employee health and job performance and save healthcare expenditures in the long run.
- Mental Health Support: Mental health service provision, counseling meetings, or an Employee Assistance Program (EAP) may aid employees.
- Gym Membership Reimbursements or Fitness Challenges: Limited reimbursement or office wellness challenges promoting exercise create a healthier employee.
- On-Site Wellness Activities: Yoga instruction, meditation class, or minimal programs like stand desks help employees with little costs.
Providing Educational and Professional Development Opportunities
Investment in career and professional growth of employees is a long-term investment in employer and employee’s interest.
- Tuition Reimbursement or Student Loan Assistance: Reimbursing the tuition or student loans to a minimum can enhance staff retention.
- Online Learning and Certifications: Many free or low-cost websites for online training offer training on enhancing job performance skills.
- Mentorship and Career Development Programs: Providing in-house professional development and mentorship programs ensures that the employees feel valued and are offered opportunities for career development.
Leveraging Voluntary Benefits
Voluntary benefits allow the employees to receive additional coverage without raising the employer’s cost. Voluntary benefits comprise:
- Dental and Vision Insurance: They are typically less costly than standard health policies, but they provide excellent coverage that workers value.
- Disability Insurance: Short—and long-term disability insurance protects workers’ salaries in case they fall ill or are injured.
- Life Insurance: Some small employers provide life insurance policies with standard coverage, while others provide buy-up options.
- Legal Assistance Plans: Workers are given affordable legal advice for personal issues such as estate planning, property transactions, or family issues.
Taking Advantage of Tax Credits and Incentives
There are various government programs for small businesses that offer cash incentives to provide benefits.
- Small Business Health Care Tax Credit: Businesses with 25 or fewer full-time employees can qualify for a tax credit to cover the cost of health coverage.
- Work Opportunity Tax Credit (WOTC): Employers who hire employees from target groups such as veterans or long-term unemployed employees are entitled to tax credits.
- State and Local Incentives: Some states offer other credits or offsets to help small employers administer competitive employee benefits plans.
Partnering with a Benefits Advisor
Managing employee benefits may be cumbersome, and small businesses may not have time or may not know how to navigate all options.
Advice from a benefits broker or advisor can assist small businesses for their employees. Benefits brokers or advisors can analyze suitable programs within the budget that conform to labor regulations and laws.
Striking the Right Balance
Competitive employee benefits need not empty the treasury. Small companies can provide better benefits packages without emptying the treasury by making the most of the employees’ needs.
Keeping low-cost options to an absolute minimum and utilizing available tax incentives. An effective benefits program attracts and retains employees and results in a productive workforce and overall business success.
READ MORE:
