Employees are the single greatest resource of any company and are the lifeblood of small businesses. As a small business owner, you have retention tools at your disposal to improve the lives of your employees and their families. The trick is to find the ones you can afford. Your benefits package can be a deciding factor in recruiting and retaining strong employees.
There are two types of employee benefits: those required by law, and those voluntary benefits offered as part of a benefits package. Examples of required benefits include social security and workers’ compensation, while voluntary benefits include health care insurance coverage, voluntary and retirement benefits. You are very familiar with the ones required by law. Let’s look at optional, affordable benefits.
Why Voluntary Benefits?
It is very rewarding knowing that as a small business owner, you have a positive effect on the lives of employees. But that reward carries a great deal of responsibility. That’s because in order to offer generous benefits, you must plan carefully. Some benefits, like health care, do not come cheaply and costs can rise no matter how hard you try to control them.
Furthermore, once you offer a benefit, it is awkward to take it away should your business no longer be able to afford it. When you can offer your employees a solid and affordable benefit package that is portable in the event they leave your employ, then you know you are fulfilling your responsibility.
A Solid, Affordable Benefits Package
Even though you may not offer health insurance, that doesn’t mean you can’t help your employees control costs. Voluntary benefits like life, accident, critical illness, and short-term disability insurance have become the best option for employees to plug the gaps in health insurance coverage. These options can be 100% employee funded.
Because you are offering them through the workplace, your benefits package is cheaper than your employees can find on their own. Plus these plans can offer portability and limited underwriting which makes it easier for all employees to qualify for coverage.
Employees prefer to buy health and life insurance benefits at work because of the convenience, the ability to pay through payroll deduction, and reliance upon you, the employer, to do some investigation on products and carriers. Also, these benefits can be deducted from paychecks with pre-tax dollars which helps employees save on costs.
What You Should Offer
The success of any voluntary benefit offering will hinge on your commitment to the success of the enrollment and the employee’s sense that this is about meeting their needs. You want to make sure that the voluntary products that you offer do not duplicate coverage that you are already providing. Also, make sure to identify what is important to your employees.
To get started with building your affordable benefits package, click here.