What Is the Typical Benefits Package for a Small Business?
Small to midsize businesses typically have to be strategic when building their benefits packages. They may not have a big budget for benefits, but still want to offer plans that can keep employees engaged while competing with similar (and sometimes larger) employers.
There is no one-size-fits-all small business employee benefits offering that will work for every SMB employer. Still, there are a couple of benefits that small businesses should consider. Read on to learn more.
First, make sure your small business has a great employee benefits broker.
Working with an awesome employee benefits broker can save your team both time and money – and create a stronger benefits strategy overall.
A great broker will look at your business’ values, goals, and employees’ needs, and build a benefits package to meet those needs.
Especially for small businesses with a small HR team, your broker should act as an “unofficial” outsourced team member to help manage benefits year-round. This helps to ensure that your employees not only have insurance but also know how to use it effectively to meet their unique needs.
A great employee benefits broker can be an invaluable resource for employers of all sizes, but especially for small businesses. Large employers often have entire teams devoted to benefits, whereas smaller businesses may not have the same resources available. For that reason, small businesses should find a broker who specializes in supporting employers of their size.
What benefits packages do small businesses typically offer?
Building a benefits offering for a small business is a balancing act between your willingness to invest in employee engagement and your bottom line. You may think you’re doing your business a favor by offering only the essentials, but a plan that can meet your employees’ needs will keep your people happy. The trick is finding that balance.
For that reason, the best benefits package for your small business is unique to your budget, goals, and employees’ needs. Here are some benefits that small businesses should consider.
The three must-have benefits for small businesses: medical, dental, and vision
Medical, dental, and vision benefits are generally considered table stakes. If you want to keep your employees healthy and engaged, we recommend starting here.
These plans are essential for recruiting and retaining employees and have the added benefit of keeping your employees healthy, which allows them to complete their job functions to the best of their ability.
(Plus, under the Affordable Care Act (ACA), small businesses are legally required to offer health insurance to employees who work a minimum of 30 hours a week. So if you’re reading this, you likely already know that these benefits are a must-have.)
To choose the perfect supplier for your company, you must first determine what you need in terms of your employee population, business goals, and budget. Once you are clear on those three things, your benefits broker will be able to assist you with choosing the ideal health, vision, and dental care for your unique needs.
Mental health benefits have always been an important piece in any benefits offering. But this category of benefits has spiked in popularity in the last couple of years.
That’s because mental health is health – and more employers than ever are choosing to invest in this essential benefit. It’s just as crucial as physical health to your employee’s performance on the job as well as their overall well-being.
For those reasons (and many others), mental healthcare should be included as part of a comprehensive health plan in order to attract and keep high-level talent.
March 2022 Bureau of Labor statistics reveal that retirement benefits are not just for larger businesses anymore, with 54% of businesses with 1 to 49 employees offering retirement benefits. Smaller companies can make it easier for employees to save for retirement with 401(k) plans or other retirement savings vehicles, such as SEP IRAs or SIMPLE IRAs.
What other ancillary benefits do small businesses typically offer?
Depending on your employee population and their needs, it may be a good idea to offer ancillary benefits like childcare, student loan repayment assistance, commuter benefits, or wellness programs. These additional benefits help add the support they need for a well-balanced life. Plus, these benefits can make it easier to attract and keep talented employees.
Heads up – this list is anything but exhaustive. The benefits landscape is changing, and now there’s usually a benefit and a vendor to meet every need your employees might have. Work with your broker to determine which additional benefits may be the right choice for your business.
Flexible Spending Accounts (FSAs) are a type of benefits plan that allows for flexibility and personalization. Using these benefits, employees can choose from a range of offerings to build a plan to match their unique needs.
Flexible benefits can also help with Diversity, Equity, and Inclusion (DEI) by supporting a range of lifestyles and needs. These are especially cost-effective for small businesses with a limited budget, allowing them to meet the demand for employee healthcare benefits without spending outside of their means.
Many among us wish we had learned more about financial matters back in school – but it’s not too late. Financial wellness benefits are here to bridge that gap.
These benefits help employees manage their finances and plan for their future. This could include retirement planning, budget coaching, access to financial counseling, student loan repayment, or tuition assistance programs.
This benefit helps employees navigate the complex world of healthcare and insurance — and get the most value out of their benefits.
Using healthcare navigation tools, employees have access to guidance and resources to help them understand (and use) their healthcare plans. This might mean they find help locating quality in-network providers, navigating confusing medical bills, or choosing their plans during open enrollment.
By using healthcare navigation tools, your employees can get the full value of their benefits, which means your money spent on healthcare goes farther. Plus, thses tools also can help your employees save money by understanding how to best use their benefits and avoid unnecessary spending.
The first step to planning your small business’ benefits package? Find a great benefits broker.
While all of these benefits can put an employer at an advantage against its competitors, the best way to wow potential employees is by working with a benefits broker that acts as a member of the team.
Talk to an expert today to customize a package to fit your small business’ unique needs, values, and budget.