Are you considering offering benefits to your employees, but you’re not sure where to begin? Providing benefits like health insurance, retirement plans, and wellness programs shows your employees that you value their well-being and their future, and it can greatly impact your ability to attract and retain top talent.
For many small to mid-sized businesses, however, deciding how to offer employee benefits can be an overwhelming process. From choosing the right benefits at a price you can afford, to navigating compliance requirements, there’s a lot to consider.
In this article, we’ll walk you through the steps to get started – so you can create a benefits package that not only supports your employees, but one that also strengthens your business.
How to Start Offering Benefits to Employees
Offering employee benefits is a key step in attracting and retaining talent, especially for small businesses looking to stay competitive in today’s job market. But working out how to offer benefits to employees of a small business can seem daunting.
Follow these steps to help you get started:
- Assess Your Business’s Needs and Budget
Before diving into specific benefits, take a close look at your business’s needs and budget. Consider factors like the size of your workforce, your industry, and what competitors are offering. Understanding these will help you determine what you can afford and what benefits will be most valuable to your employees.
- Research Legal Requirements
Depending on your business’s location and size, certain benefits might be legally required. Research state and federal laws regarding employee benefits to ensure compliance. For example, businesses may need to offer health insurance under the Affordable Care Act if they have a certain number of employees. Meeting legal obligations is the first step in building a compliant benefits package.
- Evaluate Third-Party Providers
Once you’ve outlined your budget and compliance needs, the next step is evaluating third-party providers for benefits such as health insurance, retirement plans, and wellness programs. Many small businesses partner with professional employer organizations (PEOs) or benefits brokers to manage benefits more effectively. Working with a provider can save you time and ensure your benefits are administered properly.
- Communicate With Employees
Before rolling out new benefits, it's important to gauge employee interest and expectations. Surveying your employees helps you understand what they value most in a benefits package. By aligning your offerings with their needs, you’ll create a benefits package that’s more likely to increase job satisfaction and retention.
- Choose Which Benefits to Offer
After conducting your research and gathering input, you can now decide which benefits make sense for your business. Health insurance, dental and vision, retirement plans, and wellness programs are common offerings, but your final selection should reflect your budget and your employees' preferences. This step sets the foundation for building a competitive benefits package that supports your workforce.
In the next section, we’ll dive deeper into how to choose the right benefits for your business and employees.
How to Choose Employee Benefits to Offer
Choosing the right employee benefits is an important decision that can greatly impact your business's ability to attract, retain, and engage top talent. Offering a well-rounded benefits package shows your employees that you care about their well-being, and it also helps your business stay competitive in the market.
Here are a few key steps to help guide you in making the best selections for your company’s specific needs:
- Understand the Needs of Your Workforce
Every business has a unique workforce with its own set of needs. Start by surveying your employees to gain insight into which benefits matter most to them. Are they more interested in health coverage, retirement plans, or flexible work options? Understanding these preferences will help you prioritize benefits that will have the greatest positive impact on employee satisfaction and retention.
- Balance Cost and Value
It’s important to weigh the cost of each benefit against the value it brings to both your employees and your business. While some benefits, like health insurance, may come with a higher price tag, they are also among the most valued by employees. Consider your budget, but also recognize that investing in quality benefits can lead to long-term savings through improved employee retention and productivity.
- Stay Competitive Within Your Industry
Take a look at what other companies in your industry are offering. If your competitors provide robust health insurance and retirement plans, offering similar or better benefits will help you stand out in the job market. On the other hand, if most companies in your industry don’t offer certain perks like wellness programs, introducing these could give your business a competitive edge.
- Prioritize Legal Compliance
Certain benefits, such as workers' compensation and unemployment insurance, are mandated by law. Ensure that your benefits package complies with federal, state, and local regulations to avoid penalties. Additionally, if your business has more than 50 employees, you may need to offer health insurance under the Affordable Care Act. It's essential to stay updated on these requirements to avoid potential legal risks.
- Consider the Long-Term Impact
Think about how the benefits you choose today will impact your business in the long run. Offering a retirement plan, for example, may encourage long-term employee retention by supporting your team’s future financial security. Similarly, providing flexible work arrangements or wellness programs can boost overall employee morale, reduce absenteeism, and contribute to a positive workplace culture.
By carefully assessing your workforce's needs, staying competitive within your industry, and maintaining legal compliance, you can create a benefits package that encourages employee retention, ultimately strengthening your business. A thoughtful approach during this process will lead to happier employees and a healthier company.
G&A Partners can help you give the benefits your employees deserve at a price you can afford. Learn more.
What is the best way for your business to offer employee benefits?
Deciding how to offer employee benefits involves more than just selecting which benefits to provide—it’s also about determining the most efficient and cost-effective way to manage them.
For small and mid-sized businesses, the decision typically comes down to sponsoring your own benefits plan or outsourcing that responsibility to a partner, like a PEO. Each approach has its pros and cons, but many businesses find that working with a PEO streamlines the process and offers significant advantages.
Let’s look a little closer at both options:
- Sponsoring Your Own Benefits Plan
Sponsoring your own benefits plan gives you complete control over the benefits you offer, but it also comes with added responsibilities. This includes finding the right providers, negotiating rates, and ensuring compliance with complex regulations. Additionally, administering a benefits program in-house requires substantial time, resources, and expertise, especially as your business grows. While some companies prefer to maintain this control, the time and administrative costs can add up quickly, especially for smaller businesses.
- Partnering With a PEO
For businesses that want to provide comprehensive benefits without the administrative burden, partnering with a PEO like G&A Partners offers a more streamlined solution. When you work with a PEO, you gain access to affordable, high-quality, competitive benefits similar to those offered by larger corporations.
And using a PEO not only reduces your overall benefits expenses, but it also frees up your internal resources. The PEO takes on the responsibility of administering benefits, ensuring compliance with state and federal regulations, and handling tasks like enrollment and claims processing. This allows your team to focus on growing your business, rather than getting bogged down in the complexities of benefits management.
Additionally, PEOs help you stay compliant with the ever-changing landscape of benefits laws. Whether it’s managing health insurance under the Affordable Care Act or maintaining 401(k) compliance, a good PEO partner has the expertise to keep your business on track so you can avoid costly penalties.
Which option is best for your business?
The best way to offer employee benefits depends on your business’s size, budget, and available resources. For smaller businesses that lack the internal capacity to manage a benefits program, partnering with a PEO is often the most effective option. It allows you to provide an affordable, Fortune 500-level benefits package without the administrative hassle and ensures that your business remains compliant with all relevant regulations.
On the other hand, larger businesses with dedicated HR teams might opt to manage their own benefits in-house. However, even large companies often find value in the expertise and cost savings that come from working with a PEO.
How G&A Can Help
Schedule a consultation today to find out how G&A Partners can help you provide the best possible benefits for your employees, reduce your administrative burden, and ensure compliance, so you can focus on what matters most—growing your business.
