Five benefits to consider offering employees

Hiring and retaining employees is usually at the top of the agenda for small business owners. In today’s job market, companies of all sizes compete for the best talent. Many small businesses successfully compete with the pay and benefits that larger companies can provide by providing a better work-life balance. But especially in a tight labor market, smaller companies are often better positioned to offer a range of attractive benefits to their employees, even if they may not be aware of it.

As a small business owner, there are several benefits you should consider adding to your overall benefits package, each with their own associated costs and benefits for your employees. When building a unique benefits package that best suits your business, consider your budget and research the most affordable options for your business.

Here are five benefits smaller employers can consider to recruit and retain a talented workforce.

1. Health Insurance: Health insurance is a great incentive for employees, and it’s often difficult to hire full-time employees if you don’t offer it. As a small business owner, you can take advantage of the Small Business Health Care Tax Credit, as well as the SHOP health insurance program or the ACA Marketplaces to provide coverage for your employees. You may also want to consider new health insurance plans, such as ICHRAs and QSEHRAs, that give your employees more flexibility.

2. Pension: If you want to stand out as a company, consider offering your employees a pension plan. There are an increasing number of programs and tax credits that incentivize employers to offer retirement benefits, including some facilitated by state governments. For example, several states, including California, Illinois, Maryland, Oregon, and Colorado, have established state-sponsored retirement savings programs that provide low-cost retirement benefits to small businesses. Learn more about these kinds of programs here.

3. Paid Leave: Paid leave is increasingly being offered by employers. Offering paid time off allows you to expand your talent base, including non-traditional employees such as working family caregivers, helping you meet the economic needs of your workforce while remaining competitive in recruiting and retaining skilled workers.

4. Life and Disability Insurance: Life insurance and disability insurance may not be a common benefit for most small business owners, but they are in high demand in the job market. Life insurance and disability insurance are particularly attractive to potential employees if your business is prone to accidents and risks.

5. Personalized Benefits: There are several other benefits you can provide to your employees based on their needs that will make your business a more attractive landing spot. These benefits include overtime, financial wellness programs, and business driving allowances.

Once you’ve decided what benefits you want to offer your employees, the next step is to create those plans. For certain benefits, such as paid time off, you’ll need to check if your state has an existing paid time off program, as 14 states, including the District of Columbia, currently do. Just be sure to consult your accountant, payroll company, or other trusted advisor and set up a fund with your budgeted amount to create your program.

Also, be sure to research the small business tax credits available federally or in your state for providing certain benefits. For example, you may qualify for a tax credit for certain types of paid time off for eligible employees. Many states also offer tax credits for providing paid time off or retirement benefits to your employees, which help you pay back and fund your programs.

Offering the best benefits is a great way to attract top talent. In addition to recruiting, benefits can also increase employee morale and reduce employee turnover.