Employee benefits packages have become so standardized that we can all rattle the major ones off the tops of our heads: health insurance, dental insurance, 401(K) retirement plans, paid sick and vacation time. But when it comes to assembling a benefits package for your own small business, those standards may start to look expensive, too expensive, and what you can offer may feel like too little. It doesn't always have to come down to dollars and cents however-with a little creative thinking you can hit on employee benefits solutions that suit your staff and your budget.
Are Benefits Mandatory?
Benefits packages are so commonplace that it's rare anyone stops to wonder which, if any, of those benefits are mandatory. Until you started your own business, you might not have stopped to think about this either. However, the only benefit that employers are required by law to offer employees comes in the form of worker's compensation insurance or self-insuring against these kinds of claims.
While you're not breaking any laws by offering no more than worker's compensation, you do run the risk of appearing a less-attractive company to work for than companies that do. So employee benefits don't merely provide value to workers, they also serve as a way for you to remain competitive in the marketplace when it comes to attracting and retaining quality staff.
Standard Benefits
Standard benefits like health and dental insurance, retirement plans and paid vacation make up the bulk of your benefits package. Generally speaking, you should strive to offer the best and most benefits you can afford as these are the key benefits employees are looking for, whether you're able to absorb all, part or none of the cost.
Sometimes, just qualifying for a group insurance rate or functioning as a broker for a health savings account (HAS) you can offer employees is enough-in most cases, it will be less expensive or provide better coverage than the other options available to them.
You may not have a choice when it comes to your ability to provide employees with retirement savings plans, but you may be able to work with your payroll company to set up after-tax deductions to any IRA or other savings plans they've established on their own. Conversely, you have significant leeway when it comes to setting your vacation policies and those policies can be so broad as to apply to all staff or customized to staff members according to a variety of criteria like years of service or in lieu of the salary figure they've named, but you're not able to meet.
Other Benefits
Additional benefits you might consider rolling into your employee benefits package include:
Discounts. If your business sells products or services that are of interest to your employees, offer discounted rates to staff.
Flex time or work from home. If you business model can support it, offer employees the opportunity to work four longer days in exchange for five shorter ones or permission to work from home one or more days per week.
Parking. If your building doesn't provide free parking, consider reimbursing employees for monthly parking passes at neighboring garages.
Mileage. Offering to reimburse a potential employee who lives far away, is to pay them a set amount for their actual roundtrip mileage, up to a certain number of work days per week or month.
Training and education. You might also consider offering to reimburse employees for pursuing training or other education that relates to their job, within set guidelines.
Fringe Benefits
Fringe benefits don't have to be big, but they should take your employees' personalities and the company culture you want to create into account. Whatever message you're trying to deliver, your work environment should be structured to support it so long as they don't compromise your service standards and still attract the kinds of employees you want working for you. Best of all? Fringe benefits cost little or nothing, but they're very often the thing that causes someone to accept a job offer. Consider fringe benefits like:
Summer hours. The nature of your business may or may not allow you to work different hours in the summer, but even closing a few hours early one a day week can make a difference.
Casual dress. If jeans and tees make employees feel good and don't detract from business, make every day casual day.
Movie tickets, DVD rentals, gift cards. Keep a stash on hand in small denominations to reward employees at random for meeting goals or other examples of work well done.
Dogs at Desks. So long as you're not violating your lease or the health code, or you have employees with severe allergies, allow staff to bring their dogs to work. They may even stay later because they don't have to run home to take Rover out.
 | Employers who hope to retain employees should be prepared to offer basic employee benefits. Good benefits not only help build a positive working relationship between employer and employee but also promote good work habits and financial practices. |
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Whether your business is large or small, it's important to have the benefits that make your employees feel secure and invested in the company. Setting up a retirement plan, such as 401(k) planning, for employees of a small business can help workers plan for their future and foster loyalty to the company. |
New businesses, both large and small, spring up in America every day. Unique employee benefits, therefore, must be competitive if you want to retain as many hardworking, dedicated employees as possible. |
When starting a new business, you may wonder if it is a good idea to pay yourself first. Before answering that question, you need to balance your personal needs and the needs of your business. |
