How benefit plans in small businesses can compete with large firms

It’s hard for a small business to compete with the costly health care and retirement benefits routinely offered by large employers. But there’s still plenty a small company can do, even on a shoestring, to make employees’ lives easier and win the coveted—and valuable—status as a best place to work.

The annual MetLife Employee Benefits Trends study reported this year that 72 percent of employees who are very satisfied with their benefits feel strongly loyal to their employer. Loyalty plummets to 25 percent among employees not satisfied with their benefits.

Small businesses should get creative in taking the best possible care of their employees, so that they can recruit top talent and achieve a low turnover rate. Here are some strategies:

Health Insurance

This is the big one, the issue that small business owners most fret over. But there are affordable options that many small businesses have not discovered. They should work with a benefits consultant to learn how they can creatively offer employees more options at less cost.

Dental, vision, life, and disability insurance can be voluntary benefits—with the premiums paid by employees if they select coverage—but employers should consider taking the trouble to set up a group rate and present the options. Premiums for some plans can be paid for with pre-tax dollars by setting up payroll deduction, a further benefit for employees that doesn’t cost employers, and might even benefit them by reducing payroll taxes.

“It can be a win-win situation,” said Dr. Ronald S. Leopold, vice president and national medical director, U.S. Business, MetLife. “Employees can mitigate some of their financial stresses and obtain greater peace of mind, and employers can reap the benefits of a more productive and loyal workforce.”

Flexibility

Here, small businesses shine. With less bureaucracy and formality, it’s easier to offer workers flexible schedules, telecommuting options and leniency when it comes to taking time to tend to personal issues. Focusing more on the job getting done than the clock being punched makes for a happier—and generally more productive—workforce. 

Wellness

Letting employees know that their employer cares about their health and wellbeing can generate respect and loyalty—and ultimately boost the bottom line. A small company might not be able to pay for gym memberships, but it might be able to give employees a longer lunch so that they can go for a power walk, or to arrange a local yoga instructor to give a weekly class on site.

Solicit employee input: Is there a group of employees trying to quit smoking, lose weight or reduce debt? The business can arrange support groups and even offer small rewards as incentives to reach goals. Workshops on nutrition in the workplace, stress reduction, meditation or saving for college can be offered at minimal cost, and are likely to impress employees.

Community Service

Letting employees volunteer on company time raises workers’ morale and boosts the business’s image in the community. In the United States, VolunteerMatch lists group opportunities by location.

Professional Development

With fewer layers of management, small businesses can entice employees with opportunities to learn new skills and take on greater responsibilities. Employee ideas can be solicited during regular breakfasts with the owner, and creative proposals rewarded with affordable, yet thoughtful, perks like a gift certificate for dinner, or movie tickets—in addition to the satisfaction of making a difference.

A Family Environment

Small businesses have the chance to build a workforce that feels more like a family. Employee birthdays can be acknowledged with small celebrations, and fun can be had on regular trivia contests or working in teams on a scavenger hunt. Such exercises cost little, but are what make employees tell their friends they love where they work.

With some creativity and attention, and minimal expense, small businesses can offer benefits that make employees feel their employer is taking care of them just as well, or even better, than a big company would.

 

Build community and track the benefits offered to employees in your small business with TribeHR's human resource software. Are you in the Waterloo Region? Learn all about HR and benefits at our HR for startups workshop.