A competitive benefits package attracts and retains great talents. It enhances employee engagement while increasing work motivation, job satisfaction and productivity, ultimately leading to business growth.
A survey conducted by content marketing agency Fractl shows that at least 80% of workers give significant consideration to specific benefits. These include better health insurance, work-from-home options, flexible work hours, and more vacation time.
To create a comprehensive benefits program, it’s important to listen to our employees’ needs and understand their priorities. Here, we’ll discuss the standard benefits mid-size companies offer to help you create an attractive benefits package ideal for your company size and budget.
Standard Benefits for Mid-Size Companies
The best kind of benefits package covers health, wellness, financial stability, retirement, work-life balance, and professional growth. But though we’d want to provide the best benefits to our employees, we are sometimes constrained by certain factors. Small to mid-size companies, for instance, may find it difficult to offer 4-day work weeks when they have limited staff. There’s also the issue of the additional costs incurred by these benefits.
In order to remain competitive in the job market, mid-size companies have these standard benefits in place:
1. Health insurance
Ideally, insurance packages cover health, accident, life, dental and vision. However, mid-size companies may not have the appropriate budget to offer all these.
Have at least basic health insurance for all your employees. There are several insurance packages available and their costs vary depending on company size and industry. Choose a health care provider that matches your budget.
Most companies shoulder 50-80% of the premiums for insurance packages. Try to work around a figure that’s within your capacity so you can sustain premium payments.
2. Retirement plan
A retirement plan is one of the most important benefits you can offer your employees. If offering a pension plan is not feasible due to your company’s size, consider offering a 401K retirement plan.
The 401K is a voluntary retirement saving plan where employees contribute a portion of their pre-tax earnings. This plan gives employees more financial independence as it allows them to decide how much of their money they want to deduct and deposit to the plan.
3. Performance Bonus
Performance bonus programs allow companies to reward high-performing employees, and there are many ways to implement them.
You can give annual incentive bonuses to those who achieve pre-set goals. You can also offer profit-sharing plans or employee stock ownership to motivate your employees to contribute to the company’s growth.
We can also create happiness at work by giving out spot bonuses. They don’t have to be huge amounts—they can be as simple as a $25 gift card for being the early worm at work the entire week.
4. Paid holidays and Paid Time Off
Most companies provide paid holidays for New Year, Christmas Day, Independence Day, and other national holidays. Some also provide one to two weeks paid vacation time per year.
A two-week paid leave is standard for small to mid-size companies, and is considered enough time for employees to relax and recharge without affecting the company’s overall productivity.
When developing an employee vacation policy, base decisions on what’s best for both your company and your employees. Make sure to specify terms regarding the appropriate period when filing their notice and turnover of job responsibilities.
5. Paid sick leave
While only a few states mandate companies to provide paid sick leave, most companies include this in their benefits package. Two weeks paid sick leave is the most common offer.
Paid sick leave boosts employee productivity, reduces employee turnover, and increases employee morale.
When employees work while sick, the quality of their work suffers. Allowing them to fully recover from an illness results in better productivity when they return to work.
Furthermore, when we show employees that we care about their health and well-being, we boost their morale.
6. Family and Medical Leave
The state requires companies to provide medical leave for their employees. This includes paid maternity and paternity leaves, sick leaves, and unpaid leaves for other medical reasons.
The Family and Medical Leave Act (FMLA) allows employees to file leaves for family and medical reasons without fear of losing their job. They can take up to twelve weeks of unpaid leave every year.
Those on maternity or paternity leave are usually given six weeks paid leave. If they wish to care for their newborn child longer, they are usually allowed to use vacation or sick leaves for additional weeks.
This type of leave can also be filed when caring for an immediate family member who has serious health difficulties.
Note that regardless of company size, we are all mandated by law to include this in our benefits package.
7. Flexible hours
Offering flexible work schedules will not entail much cost, yet we can gain much in terms of employee productivity.
Employee burnout is a common cause for employee turnover. This can be partly addressed by allowing employees to work during hours that are convenient for them.
For example, we can offer 4-day work weeks, work-from-home, telecommuting, or job-sharing options. Consider your staff size and productivity requirements when choosing which options to offer your employees.
8. Education Assistance & Career Development Opportunities
When we invest in our employees, they are more likely to invest back into the company. We not only help them gain knowledge and abilities that improve their productivity, we also gain their loyalty.
You can offer scholarships for employees who want to earn higher degrees, or implement low-cost continuing education strategies to develop their skill sets. Memberships to online training courses like Udemy and Coursera are cost-effective ways to do this.
A way to retain young employees is to offer them student loan assistance. Even just as little as $100 per month can help them pay off student loans faster.
Consider these benefits as worthwhile investments that allow employees to contribute more to the company, ultimately returning said investments into increased productivity.
These are just eight of the standard benefits ideally offered by small to mid-size companies. More benefits can be added depending on financial capacity. Even something as simple as a cozy pantry with free-flowing coffee at the office can significantly raise employee satisfaction.
Provide Competitive Employee Benefits
Benefits and perks are a great way to attract highly-skilled employees and retain high-performing ones. Aim to create a comprehensive compensation package that includes an equitable salary and core benefits.
While doing this, keep an eye on the bottom line. Make sure to have proper financial planning to properly sustain all company benefits without severely affecting your company’s profits.
If funds are tight, your benefits package can be flexible. You can ask employees to choose which benefits they want to have with the amount of budget you can afford to provide. Allow employees to personalize their benefits package can help them meet their own personal goals. However, it’s not recommended to withdraw a benefit once it’s already on the table.
In the long run, a competitive employee benefits package creates a thriving workplace where potential talent is easier to recruit and your current employees are satisfied, loyal, and happy to grow the company with you.