Why expanding businesses should offer employee benefits
Employer-sponsored benefits are a key factor in keeping employees happy and attracting the best workers to grow your business. However, it can be time-consuming and costly for small businesses to compete with larger companies or even other small businesses when it comes to providing benefits.
You could have 100, 500 or even 1,500 employees, depending on your industry, and still be defined as a small business by the Small Business Administration. About 99.9% of U.S. companies are considered to be small businesses.1
That’s why it’s important to make a benefits plan that works for your small business and for your bottom line. Here are some key factors to consider as your business grows.
1. Benefits offer advantages for your business.
While you may think of benefits as primarily helping your employees, they also benefit your business due to:
- Increased productivity: Forbes reports that offering medical, dental, vision and wellness benefits leads to more engaged, happier, healthier and productive employees.2 Medical, dental and vision benefits can also help reduce absenteeism.3
- Tax advantages: Talk with your accountant to see if you can deduct your contributions for medical, dental, vision and life insurance, retirement plans and other employee benefits.
- Development of a caring culture: Benefits are a good way to show employees you care about their health and financial well-being.
2. Some benefits are highly desired.
Benefits can help your business stand out in attracting and retaining employees. It’s a good idea to provide medical, dental and vision benefits because they are the most valued benefits by job seekers. Employee Benefit News labels them as “must-have employee benefits.”4
These benefits may be more affordable than you think. For instance, there are many options for medical, dental and vision plans, including voluntary plans where employees pay part or all of the monthly premium.
3. Some benefits are required.
Regardless of the size of your business, there are some employee benefits that must be provided. Talk to your benefits consultant or the Small Business Administration to see what may be required in your state.
To get started or to improve your benefits offering, talk with your employees about what they value and research what other businesses in your industry are providing.
Sources:
1 https://www.sba.gov/sites/default/files/advocacy/2018-Small-Business-Profiles-US.pdf
2 https://www.forbes.com/sites/forbeslacouncil/2018/07/03/the-four-advantages-of-offering-health-and-wellness-benefits-to-employees/#232b198646ad
3 https://www.ncbi.nlm.nih.gov/pubmed/16404205
4 https://www.benefitnews.com/slideshow/top-10-must-have-employee-benefits