Matched Retirement Accounts & Financial Planning
Whether your employees are young and not thinking about the future or are older and looking forward to retirement, helping an employee plan for their future is a sure way to encourage employees to stay with your business for the long haul. 401k matching and investment advice resources are popular with employees because it takes the burden off of their shoulders. Savvy small businesses are already thinking ahead financially, so work with your employees to keep you all on the same page.
What Types Of Benefits Do Companies Typically Offer
Employees place a high importance on benefits when evaluating job offers, so it is important that your business is at the very least offering the most common types of employee benefits.
Vin DiDonna, national practice leader of benefits consulting for Namely, said medical, dental, vision, life and disability insurance, as well as the opportunity to access tax-advantaged health spending accounts like a flexible spending account and a health savings account , are a few of the benefits employees expect.
From there, employers can offer a variety of benefits on both an employer-paid or employee-paid basis to help round out their overall benefits offering, DiDonna told business.com. It is typically here where employees compare and contrast benefits packages when evaluating multiple job offers.
Plan Or Other Retirement Savings Plan
According to Glassdoors poll, 31% of polled employees value a 401 plan, retirement plan, and/or pension plan over a salary bump. Lets run some numbers as to why this make financial sense. Imagine that an employee with a 20% tax rate is given the option to take a $5,000 salary bump or a $5,000 deposit in a 401. With the $5,000 salary bump, the employee only takes home $4,000. On the other hand, with the 401 deposit the employee keeps the entire $5,000 now and defers taxation until retirement when theyre more likely to be in a lower tax bracket. Additionally, the $5,000 contribution lowers their taxable income by $5,000 in their return next year. If youre thinking that offering a workplace retirement savings plan is too expensive, here are three key things to consider:
Here are some additional resources:
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Cost Analysis Per Benefit
Its important to do a cost analysis per benefit when determining your budget. Recently released data from the Bureau of Labor Statistics shows the various amounts that employers pay for different kinds of employee benefits. The percentage that employers spend is well upward of 30% of each employees total compensation. For example, for an employee making $35 per hour, the average employer pays an additional $13 per hour in employee benefits.
Employee Benefit Costs by Type
|Employees are reimbursed for commuter expenses required in some locations.
|Life and Disability Insurance
|Some employers pay for a fixed benefit amount, such as $50,000, providing an option for employees to purchase additional coverage.
Wheelhouse Digital Marketing Group
Number of employees: 25. Headquarters: Seattle, WA.
Benefit: The “Joy Fund”
Wheelhouse Digital Marketing Group‘s “Joy Fund,” a $50-a-month per-employee allowance, allows team members to spend the money to bring someone else happiness.
From books to concert tickets, employees have been creative with their gifts. Sometimes, they even bring their funds together for even bigger, more meaningful gifts.
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The Changing Economy And Millennial Effect
As a small business owner, you know that attracting and keeping the right employees is a challenge. The cost of offering traditional benefits is also expensive, and it’s nearly impossible for small businesses to absorb the cost of providing a full range of standard benefits. Owners have to be creative in their candidate attraction and employee retention efforts.
The Millennial generation, who now make up the largest segment of the workforce, is also driving businesses to become more creative in their benefits. Their unique consumer behavior, economic challenges, and cultural values have sparked many of these changes.
They and other Americans have struggled with stagnant wages, a shortage of affordable housing, and the crushing weight of student loan debt. Many Millennials are now running small businesses and, along with owners from other generations, are spearheading creative solutions that meet the needs of a changing workforce.â
Perks To Help Attract And Retain Employees
Small businesses often cant compete with the salaries or benefits that larger businesses or government employers can provide. But they can make up a lot of ground by offering perks to make working at their small business just as or even more attractive than working at some big company. To attract and retain the talented employees you need and develop a reputation as a great place to work, here are perks that your small business can afford.
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Retirement Plan Options For Small Businesses
While providing retirement plans to employees has its benefits, it also requires serious planning. Employers may need to consider the size of their workforce, their type of work, an employees years until retirement and whether to offer a company match. With those key points in mind, small businesses have three common plan options1 available to them:
- Simplified employee pension plan Employer contribution limits are high, but you can deduct your payments as a business expense.
The Department of Labors Employee Benefits Security Administration and the IRS provide a list of benefits and eligibilities that can help employers make an informed choice or they can speak with a small business banker or financial advisor.
Benefits Reduce Employee Turnover
According to Pew Research Center, 43% of employees who left their jobs in 2021 said poor or no employee benefits played a role in their decision to leave.
Offering employee perks that your current employees want helps to convince them to stay with your organization. If your benefits package is better than what your competitors provide, your employees will be less interested in looking for other opportunities.
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Friendly Competitions That Encourage Healthy Choices
Encourage a fun competition among your employees that provides incentives for making healthy lifestyle choices. Consider offering discounts on the initial purchase of fitness monitors to those who wish to participate, as well as fun, inexpensive prizes for winning or meeting goals. You can splurge on cash gift cards and extra PTO days for winners, or keep it simple with a non-Friday casual dress day.
Organize intramural sports teams for after work or encourage an informal lunchtime walk that any employee can choose to participate in, on any given day. Partnering with a local gym to offer employees company-exclusive gym membership discounts or fitness stipends is another relatively inexpensive option.
Vacation / Paid Time Off
Its been said that time is our most valuable commodity.
As Rick Warren writes in his book, The Purpose Driven Life, Time is your most precious gift because you only have a set amount of it. You can make more money, but you cant make more time. Your time is your life.
Similarly, studies have shown that once our basic needs are met, experiences contribute to our long term happiness much more than material things.
For these reasons, a preponderance of respondents to Glassdoors survey indicated that they valued vacation or paid time off over a salary raise.
Many companies have escalated this idea to its logical extreme, and instituted open vacation policies and summer Fridays off.
While it may seem counterintuitive, companies like Netflix and Austin-based Umbel have found that an unlimited vacation policy can have a wide range of benefits, including more productive employees.
Dont be mistaken an unlimited or open vacation policy doesnt mean that employees can take off half the year and still collect a paycheck. Rather, companies that adopt these policies allow employees as much PTO as they need to recharge as long as they meet deadlines and produce results.
Aligning your vacation policy with results rather than basing it on accrual can have a profound effect on your organizations overall culture.
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Small Business Employee Benefits To Offer Your Staff
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The people in your organisation are the backbone in its ability to thrive and progress. Rewards and benefits in the workplace can go a long way in creating a healthy working culture and developing a community that helps to achieve the businesses objectives and goals, together. By offering employees benefits in addition to their salary displays your value to them within your organisation and such benefits have shown to lower turnover rates, boost morale and improve attendance. Though small businesses may not be able to integrate big scale perks seen in large tech giants, here are 27 small business employee benefits you can implement that your staff will love.
Falling ill or getting into an accident can be costly if you arenât covered by an insurer. Offering health insurance not only benefits your staff but shows your level of care for their wellbeing and physical health, so they are able to work well.
Dental care is an expensive business that can often feel like a luxury, but it is a necessity. Without regular check-ups, we can face large costs and hefty dental work. The dental cover allows employees to rest assured that with frequent trips to the dentist their teeth will be well looked after for longer.
Group Life Insurance
Paid Time Off
Gym Membership Discount
Tea and Coffee Supplies
Start A Wellness Program
Many employees feel unhealthy because of the amount of time they spend at work. Creating a wellness program could go a long way to helping your employees be healthier, feel better about themselves, and be more productive when working.
A wellness program is designed to help employees with their fitness, diet and be more aware of their overall health. Wellness doesnât have to be the same in every business, and in fact, a strong program will likely be very tailored to where your team works and the type of work they do every week. For example, a team in an office might organize walks or a team to run a 5K race together.
A good wellness program can be started with very little financial commitment and is more about the consistency of information and activity that gets the team to be more active together. This not only can help your employees be healthier, but it can foster teamwork and cohesion amongst your workers.
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Disability Insurance And Life Insurance
Health insurance is a key element of any employee benefits package, but small business owners should consider offering other benefits as well.
Life insurance is a popular choice. Many workers have family members, often including young children, who depend on their income. Life insurance helps ensure that they will be able to provide for their families even if the worst were to happen. According to BLS, 56 percent of private industry workers have access to life insurance benefits, and the take up rate is 98 percent.
Disability insurance is another popular option. Injuries, pregnancy, cancer diagnoses, heart disease and other health issues can prevent workers from working, and that prevents them from earning an income. Some employers offer paid sick leave, but usually not enough to cover a serious health problem. According to BLS, 71 percent of private industry workers have paid sick leave, and at 20 years of service, they had an average of eight sick leave benefit days. For workers with conditions that last for more than about a week, this can be a serious concern, and while the Family and Medical Leave Act provides guaranteed job protection, it does not guarantee pay.
Disability insurance provides a practical solution. BLS says that 40 percent of civilian workers have access to short-term disability insurance, and 35 percent of civilian workers have access to long-term disability insurance.
What Is Trending For Employee Benefits
Canada is one of the most diverse places to live, which translates to a diverse workforce. As a result, there is a customization trend for employee benefits. With diversity comes differences. For the employer, this means providing benefits and perks which can work for different needs.
These flexible benefits allow employees to pick and choose what works best for them. Examples include telecommuting , flexible schedules , health spending accounts , and more.
While employee benefits have a track record for boosting employee morale, it is still dependent on the employer/employee relationship. In order to provide these types of employee benefits, there must be a mutual level of trust.
Below is a comprehensive list of employee benefitsfor a small business:
NOTE: Some benefits may fall under several categories. To avoid confusion, I have chosen not to duplicate any benefits.
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Best Employee Benefits For Millennials
A one-size-fits-all approach doesnt work anymore. With the rise of millennials and diversity in the workforce, the need to implement various employee benefits packages is high.
Millennials now take up almost 35% of the workforce. They are smart, ambitious, energetic and will not conform to the traditional norms. And they are good at their work.
So, what do you do?
Well, you give them what they want. The benefits they need and try your best to fulfill their expectations.
Benefits Of Retirement Savings For Employees And Employers
Many workers today are extending employment into their senior years, largely for two reasons. Either theyve been unable to meet their savings goals or they dont fully understand their expenses to decide when its a good time to retire. This is a risky strategy because leaves of absence, layoffs or caregiver issues can arise unexpectedly and limit income.
Employers can help their workforce members avoid such a scenario by offering a retirement savings plan. In addition to improving financial security for employees and alleviating their stress, retirement plans can help businesses reduce health care costs, improve workplace productivity and retain talent.
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Ner With A Modern Health Insurance Company That Includes Comprehensive Mental Health Coverage And Wellness Resources For Your Employees
When you partner with a modern, tech-enabled health insurer that keeps up with benefits trends, they will do a lot of the heavy lifting related to benefits for you. For instance, if you can trust that your insurer is on top of modern employee benefits such as quality mental health coverage, health and lifestyle coaching, and expansive virtual care options, then you do not have to source and administer those benefits yourself. Some health insurers even give your employees $0 access to employee wellness programs and/or employee assistance programs.
At Sana, we offer dependable, affordable health insurance to small business owners. We partner with a handful of next-gen providers to give our members $0 access to a host of modern benefits such as virtual mental health care, virtual physical therapy, virtual 24/7 pediatric care, fertility benefits, virtual health coaching, chronic condition management, Centers of Excellence, fitness classes, and more.
Snacks And Food Options
Subscription snack boxes or weekly free lunches can do a lot more than sate your employees appetites.
Snacks may help promote a social atmosphere because they encourage group meals and bonding. Plus, its one less expense for employees to worry about. Even if you cant pay for regular, catered lunches for your entire staff, even providing a birthday lunch or occasional treat can be helpful.
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Attract And Retain Great Employees With Shareable For Hires
While offering unique employee benefits is a great way to attract new talent and keep existing employees productive, employers must also do their best to bring in highly qualified candidates in the first place by creating a robust screening policy. After all, all your great perks will be wasted on an employee who fibbed on their resume, has a relevant criminal history, oreven worseeats all of the breakroom treats before anyone else has even had a chance to see them.
Dont let sub-par employees take advantage of your great benefits know who youre really hiring with comprehensive employment background checks through ShareAble for Hires. Created specifically for small businesses, ShareAble for Hires makes it easy to vet job candidates and get detailed, easy-to-read reports within minutes
Confirm that your candidate is who they say they are with identity verification. Running a candidates personal information can help prevent employee fraud and identity theftcrimes that could devastate your small business. With an in-depth criminal history check, your job candidates information is compared to national and state-wide criminal databases to see if there are any matches. Knowing that your candidate has been a responsible person in the past can make you more confident that they can be trusted with perks like flex time and remote work.
Senior Marketing Analyst, TransUnion ShareAble
Daily Pints Of Ice Cream
Ben & Jerrys rewards its employees with three pints of ice cream every day. While it may seem like the opposite of many employer wellness programs and on-the-job offerings of healthy snacks, Ben & Jerrys employees are popular with their friends and loved ones, with whom they are encouraged to share this daily job perk. Employees also have a say in the names of ice cream flavors, and, of course, boasting rights if theirs is chosen.
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