Common Challenges with Employee Benefits for Small Business
The business world depends on many moving and interchangeable parts, but one thing every company should value is the human resources that keep everything humming. Employee benefits are how you attract and retain talent, which in turn helps you solve complex business problems in a variety of challenging environments.
Although technology can assist with the heavy lifting, human resources are still the most valuable commodity in your organization. According to Stephane Garelli, emeritus professor, the problem is many organizations are making a simple accounting error. Instead of viewing employees as long-term investments, companies will often fall into the trap of viewing them as an enabling asset. For most employees, the benefits on offer are one of the primary distinguishing factors for businesses looking to attract new talent.
Typical Employee Benefits Structures in Small Businesses
Employees have the freedom to move between organizations. Once another company offers them a better deal, you cannot blame them for switching to another organization. While everyone wants a better work/life balance, most remain motivated by employee benefits like job security, paid leave, work flexibility, and above all, health or medical benefits.
Benefits packages and structures are ways you can use to retain existing resources and attract new talent. In the past, sweetening the offer with extra cash amounts may have been enough to recruit new resources. Today, employee benefits (even for small businesses) help any organization compete with large, multinational enterprises. It just depends on how you structure your benefits package.
Common Employee Benefit Packages in Small Businesses
In most organizations, the way you structure your benefits packages will depend on what talent you want to attract and retain. In today’s business climate, most employees view a work/life balance as essential when assessing a new offer from a company. In the same way, organizations still want their employees to perform at optimal levels and help keep operations running smoothly.
Organizations now compete on employee benefits packages that may include:
· Paid time off, sick leave, and paid holidays
· Healthcare, dental, and life insurance
· Retirement packages and investment opportunities
· Wellness programs, disability insurance, and childcare benefits
· Telecommuting and remote work arrangements
For small businesses, providing these benefits may appear cost-prohibitive at first. With the right employee benefit structure, every company can afford to attract and retain talent. Companies may opt for an organizational-oriented benefit structure or a consumer-focused system.
With organizational structures, the company makes all the decisions that may include a formal wellness program, health insurance policies, or retirement and pension programs. In consumer-orientated programs, employees can choose how to spend their employer-funded contributions to customize benefits according to their own individual needs. Reimbursement plans, allowances, and wellness activities may be voluntary but will help balance the scales in the company’s favor.
Current Trends in Small Business Employee Benefits
Since 2019, employees have taken many steps that help improve their health and wellness in companies. According to the Society for Human Resource Management (SHRM), most organizations increased the use of standing desks by 7% while part-time telecommutes grew by 5%. Compared to these trends, health-care contributions are still the primary benefit that defines an organization.
Regardless of company size, healthcare benefits are still a major concern for talented employees. In the SHRM survey, 20% of employers reported increasing their healthcare-related employee benefits and offerings. Keep in mind, the survey was from the year before the pandemic hit the business world. What it shows is that clearly, health and wellness are one of the key differentiators available to organizations who are looking to recruit new resources or prevent experienced assets from leaving the organization.
How to Help Employees Use Their Benefits
Simply offering employees benefits is not enough, as today you need to invest in your workforces and ensure they make use of their benefits. Encouraging employees to use your health and wellness programs (or at least reminding them that it is available) is just as important as designing the benefit structure itself.
Internal communications like newsletters, announcements, and reward programs can help broadcast the company’s commitment to long-term health. If any of the conditions change, ensure you gather your teams and explain the new employee benefits package to everyone involved. Companies are also investing in benefit resource hubs, helping employees stay up to date with changes and track their own data and metrics in real-time. Self-service systems that include streamlined communications are the best way to ensure your employees use the resources available to them at any time during their employment.
Benefits of Having an Employee Benefit Program
Some organizations are experimenting with different benefit structures to help attract talent. Programs like a four-day workweek, work from home, and providing excellent healthcare are now the primary focus for many organizations. Yet, this does not necessarily get you into the list of top employers.
Hilton, with a workforce of 430,000 employees, topped Fortune’s list of top 100 employers for the second year in a row. It is the only non-tech company to achieve this accolade, making the decade-long effort spent by Chris Nassetta even more remarkable. According to the CEO who took over in 2007, caring for employees the way you care for customers is one of the best methods for retaining talent.
How to Structure Your Small Business Employee Benefits Program
As employees age and evolve, needs will change and whatever motivations they had previously may no longer apply. You will want to create an employee benefits program that develops with your resources, providing them with the basics that are essential and the rewards that add value to their lives – now and into the future.
Family-friendly work environments, healthcare, and paid time off remain the essential benefits that most employees will look for before switching to another organization. Elements like remote work, wellness initiatives, and rewards programs will help organizations go beyond their competitors.
Creating an Employee Benefits Program for Your Small Business
In small business employee benefits programs, health coverage is probably the biggest concern for your human resources. If you need to design a health and wellness program for your employees, Benefit Concepts Inc. can help.
We provide guidance and solutions that give employers peace of mind while ensuring your staff gets the coverage they need. With benefit packages becoming the only differentiator between job offers, getting the right package and structure could be the main reason you miss signing up or retaining a key resource.
To let Benefit Concepts Inc. assist you with designing the ideal employee benefits package for your small business, speak to an advisor today.
NOTE: This content is not intended to be taken as legal, benefits, or HR advice. Since regulations change over time and can vary by location and employer size, consult a licensed broker or HR certified expert for specific guidance.
About Benefit Concepts, Inc.
Benefit Concepts, Inc. (BCI) is a Texas-based company that helps individuals and businesses achieve peace of mind through our consultative approach to design and implement comprehensive benefit programs as well as Compliance, HR Services, and Technology Solutions.
As one of the largest group and individual benefit agencies in the United States, BCI also creates strategic partnerships with other agencies across Texas by making available our wide array of solutions, and specialists, to their clients.