Not all benefits are worth the investment, especially when you’re in the early stages of your business. So what benefit package should you offer to employees?
Benefits and retention go hand-in-hand. Companies with excellent compensation packages are better able to attract (and keep) top-tier employees. Want to give yourself an edge? Here’s how you can amp up your employees’ benefits.
What’s a full benefits package?
A full benefits package is an essential perk that employees expect from their workplace. Full benefits packages help employees overcome expected and unexpected obstacles alike, with a particular emphasis on healthcare. Full benefits packages include health, vision, and dental insurance, short-term and long-term disability insurance, 401ks and retirement plans, and paid time off.
In a word: retention. People have a lot of options for employment these days, and a good salary alone isn’t always enough to make them stay. If you want top talent to stick around, you have to give them a great reason to.
According to a 2019 Access Perks study, as many as 32% of workers are planning to leave their jobs this year. Of those, 15% claim that the lack of benefits is the biggest driving factor. So, is compensation really that important? Yes! The benefits a company offers are one of its biggest draws — 73% of US employees claim that health and wellness packages are a key consideration in their job hunt.
Companies are taking notice and introducing new, widespread perks. A recent SHRM study revealed that of the 34% of companies that added new benefits last year, 72% claimed employee retention was the main goal.
How can I get started?
Learn What Employees Want
Not all benefits are worth the investment, especially when you’re in the early stages of your full benefit strategy. Use your money wisely. Instead of an all-at-once attempt, determine which key benefits make the most sense for your employees and your unique business.
According to a Justworks survey, 45% of employees consider health benefits the most important component of a compensation package. Respondents’ top priorities also include 401 K and retirement plans (37%), lifestyle perks (26%), and paid parental leave (20%). Don’t think your employees will feel the same? Ask. Find out what your employees would appreciate and use that information to guide your strategy.
Evaluate Your Options
Once you’re clear on which compensation package would be the most beneficial for your employees, research your options. Prioritize price, especially if you’re a small business owner— there’s no point analyzing a plan you can’t afford in the first place. When you find a few plans that fit your budget, compare and contrast benefits until you’ve narrowed the list to the best possible option.
How much should you spend, exactly? It depends on the size of your business and the plans you select. According to BLS statistics, companies spend an average of 30% of each employee’s salary on benefits. Prepare to pay a similar amount.
Layout a Plan for Future Growth
As you start to roll out your new benefits package, determine your next steps. What perks will you introduce net? How much will they cost to implement? How long will it take your business to get there? Let your team know that the best is yet to come — some things are worth waiting for.