By: First Union
7 Employee Benefits Your Company Should Be Offering
Smaller companies may not necessarily have the resources to offer the same sort of comprehensive benefits package that larger firms can. And while employers are required to offer certain benefits, to include, worker’s comp, social security taxes and depending on company size, medical insurance among others, having more than just the basics when it comes to benefits is most definitely how you attract top talent.
So how exactly can you do this without breaking the bank? After all, a small business has financial limits as far as what they can do. Yet you also want to stay competitive and draw in those high caliber employees otherwise looking for a certain salary in tandem with more benefits than just the basics. There are lower-cost benefits options out there; not to mention, cost-sharing is becoming increasingly popular within smaller firms, with employees paying a portion of such things as health insurance costs for example. Below are 7 employee benefits that are affordable and will also help make the package you’re offering to potential employees that much sweeter.
1. Health Insurance
This one is perhaps the main thing that any job candidate will expect to be included in their benefits package. A whopping 70 percent of companies offer health insurance to their employees. Now, exactly how much of it you cover, versus what the employee covers will be dictated by a couple of factors. How big is your company? If it has more than 49 full-time employees, there’s a cap on what you can expect the employee to pay on their own.
A recent survey suggests that the average employer covers nationwide hovers right around 82%. While this isn’t set in stone, you definitely want to weight the pros and cons here. If you can’t afford to cover that much of the premium, then figure out what you can afford and also consult with your insurance broker. He/she is a great source of information and help on this front. They can give you insight into what competitors are doing and the different options that are available to you.
2. Life Insurance
While it’s not quite as common as health insurance, approximately 55% of companies will offer some form of life insurance to their employees. Again, depending on your financials, you may opt instead to pay a portion of the life insurance policy with the employee picking up the rest.
3. Dental Insurance
Dental is actually quite a bit cheaper than health insurance—so for many, it is within the scope of what they can afford to offer their employees. And again, this is one insurance plan that is commonly split with the employee—most usually there’s an 80/20 split.
This tends to be another huge one in terms of what job applicants are looking for from a future employer. 401ks are the most common type currently offered. With retirement accounts, the options tend to be pretty vast. Many businesses will match an employee’s contributions. So essentially, the employer will match 50% of employee contributions up to say 6% of that employee’s salary. There are other organizations that will actually do a 100% match up to a certain value. And then still others that will just make a straight forward contribution to the account.
5. Flexible Schedules
This one is definitely a pretty cost-effective benefit and one that potential employees will certainly appreciate. Everyone has busy lives, hectic schedules—allowing an employee the opportunity to move their hours around or even perhaps going to a four day work week, will make employees happier, according to numerous studies. In fact, the four day work week tends to result in more productive team members.
6. Paid Vacation and Sick Time
Paid time off is basically a given nowadays. It’s usually common to allot two weeks in an employee benefits package of PTO. Now whether this is a combination of sick, vacation and personal days, or whether you bundle all such time off in one package is a decision you will have to make. But know that most if not all potential employees will expect a certain amount of PTO through the course of the year.
7. Paid Holidays
Which paid holidays you choose to give employees is up to you. There are going to be certain days that are a given, such as Memorial Day; beyond the accepted ones though, the paid holidays are totally up to your discretion. Keep in mind, this is a relatively inexpensive benefit that could bolster the package. You have to weigh your options and determine what makes sense for your team.
Certainly, there are many more things that could be added to this list; things such as educational aid, legal service help, FSA accounts, even pet insurance are all benefits that companies have explored and / or integrated into their packages. You want to put together as comprehensive an employee benefits package as you can without of course undermining the financial stability of the firm. This could be a fairly difficult balancing act for some smaller companies—but doing your homework and looking at even more creative options can certainly help.
Looking for a Loan to Assist with Your Employee Benefits?
As you improve employee benefits, you lower your company turnover rate. That’s because it costs more to hire new employees than it does to retain current employees.
At First Union Lending, we can help. Our lending specialist can help you find the best business loan for your company's needs.