Learn how to offer small business employee benefits.
When you’re starting up your own business, one of the most important things to think about is your employees. They are what can make or break your business. So, it’s crucial that you treat them well and reward them appropriately.
Rewarding employees goes beyond offering them a lucrative salary. Eighty percent of job hunters would prefer working for a company that provides more employee benefits over one that pays lucrative salaries, according to a 2018 report by the American Institute of CPAs. This article will take you through essential small business employee benefits you can incorporate into your company to lure top talents and retain your best employees.
How to Structure Employee Benefits
Before you offer employee benefits, you need to design a structure on how your plan will work. Basically, there are two different ways to structure small business employee benefits: Organizational-oriented and consumer-oriented benefits.
Organizational-Oriented Benefits
These are fixed employee benefits that are defined and selected by the employer. Employees can either choose whether they like them or not. Here are some organizational-oriented benefits you can offer your staff:
- Life Insurance. You can show your employees that you love and care for their loved ones by offering them life insurance policies. This can motivate them to work hard and even double their productivity.
- Retirement Pension. You can enroll your employees into a retirement pension and help them pad their future savings. When deciding on a pension plan, consider whether or not you can afford to pay monthly installments for all your staff members.
- Health Insurance. Good health insurance is invaluable because it helps protect your employees against illness and injury, making them concentrate on their work fully. When looking for an insurance policy, find a company that will tailor its coverage to suit your business needs.
Consumer-Oriented Benefits
When you choose a consumer-oriented benefits structure, you only fund the employee benefits but let your workers choose whatever service they want. For example, if it’s a healthcare benefit, you can give your staff a certain amount of money and allow them to choose where they want to be treated. Examples of consumer-oriented benefits small businesses can offer include:
- Health Reimbursement Arrangement. This plan allows employees to use pre-tax income for eligible health care expenses not covered by health insurance. Eligible medical expenses include physician’s office visits, physical therapy, vision exams and eyeglasses, prescription drugs, and vaccinations.
- Allowances for Wellness Activities. You can provide wellness activities or incentives to help your employers care for their overall well-being. This could include offering a small stipend for gym memberships, healthy food purchases, or physical therapy sessions.
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