Small business is the backbone of the US economy. Without it, the economy would collapse. That doesn’t mean we don’t have our struggles. Competition with larger employers is one of those and is a statement I often hear. How to stay competitive and keep good employees? It’s not that hard and it’s not one of those “all or nothing” options either. Below, I have listed 5 reasons to offer employee benefits for small business.
Employee Value
Employers should never take for granted what makes their business successful. Their employees. Recruiting the right employee to fit your culture can be challenging in today’s environment. Employees fill valued when an employer looks to put their interests first. This one act alone encourages employees to stay long-term. This has proven to be true pre and post Covid-19.
Cost
If an employee has to purchase an insurance product on their own, most of the time the cost is higher. Some of the reasons for that can be medical underwriting and limited product availability. Most carriers will provide discounts for group coverage just because it’s being offered to more people. They can spread the risk over increased numbers.
One example of spreading the risk is life insurance. Many times, a carrier will offer a guaranteed issue amount, say up to $100,000, and an employee will not have to answer medical questions in order to enroll. If an employee tried to enroll in a personal life insurance policy on their own and had some medical conditions, may get denied. That’s a good reason to add employee benefits for small business.
Broad Selection
Carriers love to offer a package deal. This gives the employee additional options they don’t have in the individual market. Like I mentioned cost previously, employees get the benefit of economies of scale when carriers offer benefits to a company. Selection. One example is disability insurance. BankRate reported in 2019 that 60% of Americans are unable to cover an unexpected $1000 emergency. Employers have an opportunity to offer their employees short and long-term disability to help cover that gap just in case they are unable to work. Employees also get access to worksite plans than cover accidents and cancer.
Healthier Employees
Over the past year, 22% of Americans say they have steered clear of some sort of medical care — including doctor visits, medications, vaccinations, annual exams, screenings, vision checks and routine blood work — because of the expense, according to a recent online survey of roughly 2,500 U.S. adults conducted on behalf of Bankrate.
If an employee is able to afford health insurance through an employer, they are not putting off critical care such as, wellness and prescription medication they need to stay healthy. Healthy employees are more productive and are out of work less often.
Benefits with a Twist
Some benefits don’t have to cost anything. Employers should always look for different ways to offer unique employee benefits with a twist. Below I will give you 4 easy ways to provide a benefit at little or no cost:
- Flexible schedules
Especially during the Covid pandemic, employees found that having a flexible schedule allows them the flexibility to meet the needs of their family. Setting work schedules like, 4 ten-hour days with Friday off can help employees balance the needs of their life. One example would be the employee scheduling personal doctor visits on that Friday off. This is a great way of keeping the office staffed and functioning as it should.
- Work from Home
Pre-Covid 19, employers were hesitant to look at this, even if it was an option. If this is a viable option for your business and you can gage employee productivity, this could be one of those options that appeal, especially to your younger employees. Employees who can handle the work life balance by working from home will thrive with the additional flexibility. To stay compliant, read our article, Transition to Remote Work, Don’t Fall Afoul of Wage and Hour Laws.
- Group Lunch
No better way to show your appreciation to someone than to feed their stomach. An employer paid lunch is one of those small things that will show your employees your appreciation for what that do. One great way to change this up is to alternate cultural traditions. Flavor of the month!
- Free Day Off
One way I implemented a no cost benefit in our office was have someone off each Friday. Yes, we don’t have 100’s of employees, but when employees know they have a free day off with pay, they can schedule some much needed “me time” with a nice long weekend.
As you see, not all benefits come with a huge expense. But no matter the cost, employee appreciation should be at the top of your organizations goals to improve your culture each and every year. Start today by adding employee benefits for small business.
