6 Small Business Employee Benefits You Should Consider
Employee benefits are now so important in job offers that they’re often listed alongside total compensation. HR teams and hiring managers highlight perks such as retirement plans, flexible schedules, and dental or vision insurance to attract candidates.
With 83% of millennials saying they would change jobs for lifestyle benefits alone, small businesses should consider creative benefits packages. Even a single perk can be key in attracting and retaining talent. From new startups to growing companies, small businesses can compete by offering well-designed employee benefits.
What Are Employee Benefits?
Employee benefits are additional perks or compensation employees receive beyond their salary. Common examples include paid leave, health insurance, and retirement plans. More unique perks could be gym memberships or ergonomic office equipment.
The U.S. Labor Department estimates that companies spend about 50% extra on top of salaries to cover benefits. While large companies can add perks without financial strain, small businesses may need more affordable options. Fortunately, there are budget-friendly benefits that still have a big impact.
Why Should Small Businesses Offer Employee Benefits?
Studies show less than half of employees at small companies have benefits, compared to over 95% at large companies. This gap can push talent toward bigger firms and increase turnover for smaller ones.
Offering competitive benefits can help small businesses stand out, improve retention, and act as a strong recruitment tool. Flexible and personalized perks can be just as effective as big-company packages.
Do Small Businesses Have to Offer the Same Benefits as Large Companies?
Many legal requirements, such as the Affordable Care Act and Family Medical Leave Act, apply only to companies with 50 or more employees. Small businesses are typically only required to provide:
- Medicare
- Social Security
- Workers’ Compensation Insurance
- Unemployment Insurance
This creates an opportunity for smaller companies to build attractive packages voluntarily, giving them a competitive edge.
How to Create an Attractive Small Business Benefits Package
- Plan Your Budget: Even with limited funds, you can offer valuable voluntary benefits employees can opt into.
- Choose Flexible Perks: Small businesses can offer personalized benefits that are easy to manage and track.
- Select the Right Partners: Work with providers like Paychex or Gusto for retirement and healthcare plans.
- Use Management Tools: Platforms like Oriento help track usage and employee satisfaction.
- Communicate Benefits Clearly: Ensure employees understand and can easily access their benefits.
6 Affordable Small Business Employee Benefits for 2024
1. Flexible PTO, Work Weeks, and Remote Work
Offer flexible PTO and remote work options to attract and retain employees. Avoid unlimited PTO policies, but provide more vacation days than the average 10–14 offered in the U.S.
2. Healthcare Reimbursement Accounts
Provide accounts for employees to cover health-related costs not included in standard insurance plans.
3. Language Lessons
Support international employees by offering language classes to boost confidence and communication.
4. Personalized Days Off
Allow employees to take time off for personal or religious observances, fostering inclusivity.
5. Parenting Support
Offer resources like baby monitors or parenting gear to help working parents balance responsibilities.
6. Wellness Passes Beyond the Gym
Include wellness benefits such as national park visits or mindfulness programs for mental health.
The Key to Successful Small Business Benefits
The most effective small business benefits are those that improve retention and morale. Track their ROI with Oriento to understand what your team values most.
Sign up free to explore Oriento’s benefits management tools and create a package tailored to your small business.