As an employer, you have to constantly be thinking about how you can attract and retain key talent. Employee benefits are certainly one option that you can dangle in front of people to make working for your company seem more attractive.
The Top Benefits You Should Consider Offering
There are hundreds of ways to attract talent to your business. Salaries and compensation are certainly important. Workplace culture matters, too. But when all else is considered equal between two companies, talent almost always relies on benefits packages to determine which job is worth taking. (Likewise, it can be a determining factor in how long an employee decides to stay with a company.)
With all of that being said, employers should spend time carefully thinking about which benefits are worth offering. Here are some of the top ones:
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Health Insurance
Health insurance is often the most important and expensive employee benefit.
“In general, you can expect a group coverage plan to average between $400 and $500 per month per employee,” HSA for America explains. “Other variables include where your business is located, the age of the employee, and family size (when family coverage is offered).”
The benefits of offering health insurance are clear: it provides your employees with access to necessary medical care and can help prevent high medical bills that could lead to financial distress. Additionally, a robust health insurance package can help attract and retain top talent.
However, offering health insurance can also be a significant financial burden for small businesses. Some smaller companies may consider alternative options, such as health savings accounts (HSAs) or healthshare programs, which can be more affordable but may not provide the same level of coverage.
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Retirement Plans
Retirement plans, such as 401(k) plans, are another common employee benefit. Offering a retirement plan can help attract and retain top talent, as it shows your commitment to your employees’ long-term financial stability. Plus, contributions to retirement plans are often tax-deductible for the business.
Offering a retirement plan can also be expensive and time-consuming. The cost of setting up and maintaining a 401(k) plan can vary widely, depending on the size of your business and the specific plan you choose. And then there’s the administrative burden of managing a 401(k) plan, which can be significant. Smaller businesses may consider simpler options, such as Simplified Employee Pension (SEP) plans or Savings Incentive Match Plan for Employees (SIMPLE) plans.
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Paid Time Off
Paid time off (PTO) is a common employee benefit that can be a powerful tool for attracting and retaining top talent. Offering a generous PTO policy shows your commitment to work-life balance and can help prevent burnout. Additionally, PTO can help prevent employee turnover, as employees who feel burned out or overworked are more likely to leave.
The cost of offering PTO can vary widely depending on the specific policy. In general, small businesses should aim to offer at least two weeks of PTO per year. However, some businesses may choose to offer more as a way of standing out in a crowded job market.
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Flexible Work Arrangements
Flexible work arrangements, such as remote work and flexible hours, are becoming increasingly popular employee benefits. Offering these benefits can help attract and retain top talent, as they provide employees with the ability to work in a way that best suits their needs. Additionally, flexible work arrangements can help improve work-life balance and prevent employee burnout.
Offering flexible work arrangements can be challenging for some small businesses. It can be difficult to ensure that employees are still productive and engaged when working from home or on a flexible schedule. On top of that, some industries may not lend themselves well to remote work or flexible hours.
Designing Your Benefits Package
Offering a robust employee benefits package is a powerful tool for attracting and retaining top talent. While benefits like health insurance and retirement plans can be expensive, they are also highly valued by employees. Other benefits, such as PTO and flexible work arrangements, can be more affordable but no less important for creating a positive work environment.
As you think about building your benefits package, consider the needs and desires of your employees, as well as the financial constraints of your business. With the right balance of benefits, you can create a workplace that is attractive to top talent and built to last.
You may be interested in: Should your company be adopting a flexible working policy?