Entrepreneur’s Guide to Providing Employees with Great Benefits
Money matters but it turns out benefits matter more for prospective employees, says CareerCast.
For an entrepreneur, this means that offering a good benefits package might give you a chance to score higher-ranked professionals that will help to move your business forward faster. It won’t be easy as to offer some good benefits you need to have a huge budget.
However, the point is in giving your employees things that truly matter, not a fancy gym membership (though that can be included once you get to that income level).
What Are the Most Important Employee Benefits Small Business Needs to Offer?
- Health insurance
- Paid leave
- Life and disability insurance
- Dental and vision insurance
- Retirements plans and 401K
You should also do your best to include cafeteria plans if the service you will use includes them. And don’t forget about commuter benefits, which are mandatory in eight states.
4 Employee Benefits Entrepreneurs Can Use
1. PEO
Professional Employer Organizations (PEOs) are the best kind of benefits provider that a small business can find today.
They are the best because being a benefit provider is only a small fraction of what these companies do. They can effectively take over the majority of staffing issues and give you a small cut in taxes as well.
PEOs are extremely versatile in their services and usually offer all essential benefits as well as a few extras that you can use for attracting higher-qualified professionals.
However, because these companies vary and not all of them are 100% reliable, you should definitely get a professional PEO report before hiring one.
2. Insurance company
As the majority of important employee benefits for small business are connected to various insurance types, insurance providers and brokers often offer help in acquiring them.
As it often is when dealing with insurance companies, the costs of this service will be quite high.
On the upside, the quality and reliability should be high as well.
Therefore, if the entrepreneur can afford it, employee benefits plans from insurance companies definitely should be considered.
It’s a good option for businesses that are growing fast. Large companies definitely should prioritize this option.
Another perk of working with independent insurance providers is that they often include good additional benefits. But these benefit providers won’t manage your holidays and PTO.
Related: What to Consider When Choosing Business Insurance
3. HR software
Top-quality HR software solutions include employee benefits, performance management, payroll, and even recruiting. There are usually more services, so study the description closely when shopping for this solution.
Good HR software provides all essential employee benefits, like PEO does. These programs are far more varied, though, so you need to study the exact list of what’s included in every package and compare them carefully.
HR software usually tracks holidays and PTO, as well as allows you to keep track of any employee benefits data easily. Some programs even have a feature that allows employees to assess their data personally.
If you choose to use HR software and are already using cloud accounting software like QuickBooks, look for a solution that will integrate into your current system.
4. Payroll software
Similar to HR software, payroll software can provide an option for obtaining all essential employee benefits for a small business. It’s more limited in other features.
The situation is the same for the types of benefits included, meaning the offers differ greatly, so study them thoroughly.
