Employee Benefits

3 Ways Small Businesses Can Succeed With Employee Benefits

Happy waitress working at small business with employee benefits.

In the U.S., approximately 27 million small businesses employ over 60 million workers. Small business owners rely on employees to work with customers and keep operations running smoothly. However, finding and keeping great employees can be challenging. Providing benefits and perks enable businesses to recruit and retain top team members, and helps keep them healthy and productive at work. Consider three tips for success:

1. Choices – Small businesses often cannot dedicate a large percent of their budgets to employee benefits, but they can provide access to health coverage. A 2016 Harris Poll found that employees rank health insurance, including medical, dental and vision, among their top choices for benefits. Other perks they enjoy include bonuses, rewards, vacation time, flexible schedules or 401k/retirement plans.

2. Pretax plans – Small businesses can help employees stretch their salary by offering a Flexible Spending Account (FSA) or Health Savings Account (HSA). Employees set aside money to pay for out-of-pocket health care costs, such as dental procedures, prescription eyeglasses or prescriptions. Many employers subsidize employees’ contributions. Make sure employees know whether or not unused funds can be carried over to the next year.

3. Right partners – Establish a relationship with a trusted broker and insurance carrier to keep apprised of government regulations and benefits choices. Use these partners to:

  • Review how employees use benefits coverage.
  • Find out benefits employees want.
  • Identify plan designs and voluntary coverage options.
  • Educate employees about their benefits choices.
  • Assist employees in selecting and using their plans.

Don’t forget to take time throughout the year to remind employees of the value of their benefits. Learn communication ideas by reviewing this interview with Jennifer Benz, a national expert on benefits.

 

Sources:
The Terrell Tribune
Glassdoor

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