In the hiring process, one of the areas of interest to candidates are the employee benefits.
Employee benefits pertain to the compensation provided to employees that doesn’t come in the form of salary. These benefits can affect employee morale and productivity, as well as work motivation.
Most big companies offer packages such as memberships in health clubs or extracurricular activities. Although smaller in size and fewer in employees, small companies provide a lot of benefits that match what their bigger counterparts have to offer.
In this guide, we’ll talk about the benefits that are standard for small companies in today’s setting. We’ll also discuss the various strategies you can implement to improve what you already have to offer.
Financial Assistance with Savings and Education
Most of the workforce for both smaller and bigger businesses come from the group of millennials. This age group tends to be more practical in what they want and what they expect from a job they are applying for. This includes employee benefits.
A CNBC article reported that millennials are looking for assistance with their finances. This can be in the form of either a savings program or student loan assistance.
Most businesses now, including the smaller ones, try to address the problem with student loans by offering to chip in payments for their employee’s debts.
A 401k plan is essentially a retirement plan that offers competitive benefits for workers. While most plans don’t require employees to contribute, it gives them access to tax-deferred growth potential and pre-tax contributions.
For businesses that can’t afford the 401k plans, they also offer college savings plans.
When we say college savings, it’s a type of education savings plan that’s typically operated by a state or educational institution. It allows businesses to offer voluntary benefits to their employees through automatic payroll deductions deposited into their accounts.
For the practical millennial and employee, it’s a way to make sure their money goes to something that will secure their future.
Security in Health Insurance
Health insurances are also standard for companies. What people want is to be sure that in the event that anything happens to them, they — and their families — will be well compensated.
Depending on the size of their workforce, most small companies cover 100% of their employees’ health insurance.
Dental coverage and vision insurance are usually included in the offered health benefits. Vision plans can include annual eye exams and even allowances for new glasses or contact lenses.
According to PeopleKeep, most small businesses can expect to pay $540 for single coverage and $1,468 for family coverage on a monthly basis.
The health insurance doesn’t necessarily have to be pricy. There are existing health insurance plans that sell group policies depending on the business size.
Protective Policies That Ensure Safety and Comfort
Employees, especially women, want to feel that their company is protecting them. A toxic work culture can be detrimental to a person’s performance.
It should be a standard benefit for a company to have policies on how to handle harassment at work. These policies should hold everyone accountable, including the management.
With a smaller pool of people to look after, smaller businesses can provide more clear-cut policies without the loopholes that some larger companies take advantage of.
Opportunities for Career and Personal Growth
When millennials were asked what they look for in a job, most of them mentioned wanting a workplace that will give them the chance to grow.
They look for jobs that allow them the chance to enhance themselves in a flexible environment. This includes work from home arrangements and flextime schedules.
Among other practical benefits, employees also seek out opportunities to relieve stress that comes with the work load or the demands placed upon them.
These activities don’t have to be expensive or extravagant. Monthly get-togethers where people can talk business in a more relaxed environment are easy for any small company to organize.
How Do You Improve Your Company’s Benefits Packages?
1. Be flexible with what your employees want and what they need.
Not everyone is going to be pleased with the benefits that your company has to offer, so it’s important to keep an open mind. There are various ways to get insights from your employees.
Annual performance reviews are one method where you ask your employees about what keeps them motivated. Their answers can then give you an idea on what you can do to improve the benefits you offer.
Some options might be relevant to your employees; others might become less enticing as priorities and expectations change.
Different people want different things as benefits. Older people might want reimbursements for school tuitions. They might also ask to choose their own doctor while their medical costs are being covered by the company.
On the other hand, younger employees might just want to be able to pay their student loans or lessen their out of pocket expenses.
You can try to identify what your employees want either through evaluations or just listening to them talk. If an employee feels valued and well-compensated, the higher the chances are of them staying.
And the more an employee enjoys the company benefits, the more they’ll feel like they’re part of the team during their time with the business. This increases employee engagement and satisfaction.
2. Have a budget and an organizational design in mind.
Identify the structures that best fit the employee benefits you intend to give out. Determine what your budget is, and then you can look for a provider that offers all of the benefits you want.
In general, businesses have two ways of offering employee benefits:
Organizational benefits: Organizational-oriented benefits are when employers offer their employees a specific benefit. Examples of this can be a health insurance policy or a wellness program.
These types of benefits are employer-owned and employer-selected.
Consumer-oriented benefits: When we say consumer-oriented, these are benefits that are employer-funded and employee-selected.
If you use this structure, it gives your employees the freedom to choose what they want from what you have to offer. Some of these include reimbursement plans for health and tuition or personalized benefits.
Benefits are a good way to entice people into giving our business a chance.
Because of the budget that they have, most small companies are turning to consumer-oriented benefits. This structure helps them control costs while addressing what their employees expect and need.
Employees like to feel valued and involved in the workplace. The benefits offered to them play a big part in convincing an employee into staying with the company or eventually leaving to go look for other opportunities that suit them.
While there is an array of benefits to be offered, the standards for small businesses usually involve healthcare plans, financial support, and flexible working environments.