BUSINESS NEEDS TO KNOW ABOUT EMPLOYEE BENEFITS
- February 07, 2020
- William Lewis
Small businesses often overlook 1 of the most important components of a successful organization; the benefits. Benefits include health insurance, retirement packages, and more, and employees are looking for great benefits when they apply to new companies. Small businesses don’t often have access to good benefits packages unless they’re using a PEO service or have some other avenue available. Here’s what is small businesses need to know about employee benefits and why they should keep good benefits packages on their radar.
A Competitive Edge
What sets a great business apart from a mediocre one, besides its commitment to quality, customer service, and a great work environment? The benefits package the business has to offer to its employees. Benefits are important in a day and age where the health insurance market is overly complex, confusing, and downright unaffordable.
Do you know that health insurance premiums have jumped higher than wages as of last year? The race to find decent, affordable health coverage continues as lawmakers struggle to pass legislation to appease both the public and health insurance companies alike. That being said, it’s vital to small businesses to offer at the very least health coverage in order to gain an edge over the competition.
Most small businesses assume that “competition” simply applies to the market; product versus product, sale versus sale, customer service versus customer service. While that’s certainly true, it also applies to the employees your business hires. Better candidates help improve the work culture, increase productivity, and can even take your business to the next level of service.
Well-qualified and driven candidates are hard enough as it is to come by without scaring them off. Your business can offer everything the ideal candidate desires; from a positive and uplifting work environment to good pay, but without benefits, you just might lose them to the competition.
Having the best benefits package will help you attract and keep your qualified candidates, which is good for the long-term health and success of the business overall. If you had a choice between two businesses that offered similar positions, but one offered benefits, which would you pick?
PEO Services Can Offer Better Opportunities
As a small business, finding competitive benefits packages on your own can be quite a challenge. Not only will you have access to less-than-favourable rates, but you’ll find it quite difficult as a standalone business to find the exact packages you’re looking for. Luckily, there’s a solution that involves not only getting access to better packages and rates but also saving you money in the long-term by outsourcing other tasks.
A professional employer organization, or PEO, can offer a unique solution to small businesses with benefits difficulties. PEO services work with hundreds or even thousands of small businesses, and since they’re pooled together, the PEO service itself can offer far better benefits options as a whole. You’re essentially teaming up with other small businesses to form a single entity that has the power and pull of a large corporation.
It’s no secret that big business gets special treatment. Everything from tax breaks to better benefits seems to be available to the biggest companies out there, which is why pairing with a PEO is a smart move for small businesses. Not only that, but you’ll also be outsourcing your HR department to an expert organization that will keep you in compliance, manage payroll, and more.
Making the decision to pair with a PEO service will benefit you and your employees long-term in many ways.
Benefits Packages are Key to Employee Loyalty
Businesses that experience a high turnover rate have a lot to think about, but the first place to look (after your work environment and policies) is the benefits you’re offering the employees. People want a career that offers competitive benefits, not just a job that pays them. Sometimes, it’s simply not enough to offer a competitive wage without a benefits package to go with it.
Offering benefits shows employees and potential candidates that you not only care about their future but also that you’re willing to spend some of your own money to ensure they’re well-cared for. That’s quite the statement and one that your employees won’t forget. Treat them well with a good work environment, competitive pay and benefits, and a good management team, and your business will thrive for years to come while reducing turnover substantially.
The Bottom Line
Offering benefits is the key to success in small business, you should be thinking about how you’ll provide benefits to future employees. Businesses that offer benefits are far more likely to attract driven, qualified, and loyal candidates to their organizations.