Small business owners face a number of challenges every day. It’s no easy feat running your own business, and it can be hard to keep up with the bigger corporations. There are also many advantages to owning a small business. You get to know all of your employees–many times, they even feel like family. Employees at a small business are often fiercely loyal because they know they are appreciated. Their loyalty and productivity is an essential factor in your business’s success. You want to ensure that they feel comfortable at work and that they can address their personal needs as well.Â
A competitive employee benefits package can help you achieve these goals. These benefits can help your employees receive the health care that they need. They’ll also help employees address their emotional and financial well-being.
What Should Be Included in an Employee Benefits Package?
The types of benefits you offer your employees is completely up to you. These are some of the most common benefits that employees look for in a company:
Health Insurance
This is perhaps the most important benefit for most employees. Health insurance provides peace of mind. In a time when doctor and hospital bills can reach exorbitant amounts, many people worry about becoming ill. Without health insurance, an unexpected stay in the hospital or a serious illness can empty a person’s bank account or even cost them their home.
There are a variety of different health insurance plans you can offer your employees, but HMOs are the most popular. With an HMO, an employee is required to choose a primary care doctor and pay co-pays at each visit. If the employee needs to see a specialist, the primary care doctor will refer him to a specialist within the same network. The drawback is that you don’t have total freedom when choosing your doctors, but the costs are usually lower than other health insurance options.
Dental Insurance
Just like medical bills, dental costs can add up very quickly. When an employee has dental insurance, they are more likely to visit their dentist for routine care like cleanings. This helps prevent any serious issues from getting out of control. If a serious issue does arise, dental insurance will help them take care of it.
Businesses can choose to offer fully-funded or partially-funded employer plans, where they will cover the total or a portion of the cost of dental benefits. Fully-funded employee plans are also an option, which means that the employee covers the cost of the benefits.
Vacation/Sick Time
Everyone needs a break once in a while. Time away from the job helps employees de-stress and recuperate both mentally and physically. You’ll notice better overall performance when you offer vacation time. Employees who never take a break become burned out, and sometimes resentful. Sometimes employees feel like they have to come to work sick, because the only option is losing that day’s pay if they call out.
Offering vacation and sick time sends an important message–that you care about your employees and you appreciate the hard work they do on a daily basis. You can decide what type of vacation and sick benefits you want to offer in your employee benefits package.
401k
A 401k plan is an excellent way for your employees to plan for retirement. Employees contribute a specified amount to their plan and some employers match employee contributions, up to a certain amount.
In addition to providing a nest egg at retirement, a 401k has tax benefits. Contributions are pre-tax, which means they are deducted from income before that income is taxed. This means that some employees, depending on how large their 401k contribution is, could be in a lower tax bracket. This type of plan also allows employees’ savings to grow without being taxed–as long as it’s in the plan. The employee is not taxed on that money until they withdraw it.
Maternity Leave
Maternity leave is a priceless benefit for many women. Whether they are currently expecting or plan to have children in the future, knowing that they can spend those first few precious weeks with their baby means a lot. They can also rest assured knowing that they will still have their income during their time off, and their job will be waiting for them upon their return.
Maternity leave varies depending on the company offering it. Usually, it is made up of a combination of sick time, vacation, personal days, and short-term disability. If the employee is not offered paid maternity leave, the Family and Medical Leave Act (FMLA) is a law that allows the employee to take up to 12 weeks of unpaid time off after the birth of a child. There are specific conditions that make a company exempt from offering FMLA, including the size of the business and the length of time that the employee has worked there.
Flexible Schedule
Flexible scheduling is becoming more commonplace now. Many companies no longer require their employees to follow a traditional work schedule. Instead, they offer scheduling that meets the employees needs, so long as the employee can attain the same goals. For example, an employee might work four days a week, 10 hours a day. Or they might telecommute, if possible, and work from the comfort of their home.
This flexibility is incredibly helpful for employees with young children, or people who are working two jobs. It’s also helpful because employees may have to commute to the office less, saving on gas expenses and putting less wear-and-tear on their vehicles.
Benefits of Offering a Competitive Employee Benefits Package
A competitive employee benefits package can benefit your business in numerous ways. It can help your business grow by attracting new talent, and help you retain the promising employees you already have. Offering useful benefits to your employees is an investment in the future of your company.
Employee Retention
You’ve built a team full of great employees–they’re ambitious, they work well together, and they work efficiently. It’s not easy to build a great team like that, and you definitely don’t want to lose them. One of the most foolproof strategies for retaining employees is to offer an awesome benefits package.
According to a Glassdoor survey, employees value benefits more than pay raises. The top five benefits are health insurance, vacation time, performance bonuses, sick time, and a retirement plan. In addition to these benefits, employees also appreciate low-cost benefits, like a flexible schedule and the ability to work from home.
Attract New Employees
Finding brilliant new talent is the key to growing your business. Many job hunters say that a strong employee benefits package can be a deciding factor when accepting a job offer. It’s important to understand what types of benefits attract qualified candidates. An easy technique to gather this information is to make it a part of your interview process. Simply ask your candidates which benefits make the business more attractive. Even if they don’t accept a position, asking this question helps you gain valuable insight.
Increased Productivity
When your employees know you care about their well-being, they’re going to be more content. Employees with the peace-of-mind that comes along with good benefits are less stressed, which allows them to focus better and work more efficiently. Studies from MetLife show that comprehensive benefits, reasonable workloads, and flexible hours lead to increased productivity, engagement, and loyalty.
Get Help from the Professionals
A competitive employee benefits package is beneficial to you and your employees. Offering valuable benefits shows your employees that you care about their well-being, which will have a positive effect on their loyalty. Employees with great benefits also experience less stress, making them more productive in the workplace. The experienced professionals at Silver Tax Group are happy to answer any questions you might have about employee benefits and the associated tax forms.
