Why Should Small Businesses Offer Employee Benefits?
You own a small business and employee benefits may be the last thing on your mind. Or perhaps you have considered offering employee benefits but there may be obstacles that stand in your way. So why should small businesses offer employee benefits? Let’s start with two main reasons why many employers currently do not offer benefits:
- Varied employee requirements – Traditionally small businesses aren’t given the same benefits options as a large employer would. The traditional one-size-fits-all plans make it difficult for an employer to meet the needs of a diverse workforce. Consider the variety of ages, family situations and health of your employees.
- Financial concerns – This is perhaps the biggest concern facing small businesses, particularly the predictability of the premiums over the long-term. Many business owners may want to avoid making a commitment that they cannot keep and are concerned about employee reaction to cost sharing.
These are valid concerns and can be a major factor in the decision making process. In addition, some employers may not know where to begin and are suspicious of the sales people falling all over themselves to sell them benefits.
It is possible for a small business owner to have a group benefits plan that not only meets the needs of a diverse workforce, but is also cost effective. So why should small businesses offer employee benefits? Here are some of the main reasons:
- Employee retention – Looking to attract and retain top-end talent? A comprehensive benefits package can make a huge difference in your compensation package. In addition, employees are more likely to stay with a company that is offering quality benefits even though they may earn a higher salary somewhere else.
- Wholesale buying – Many business owners might not be aware that they have access to the same benefits packages offered to large businesses. Imagine being able to offer the same type of benefits as a large employer at a fraction of the cost
- Flexible benefits – One size definitely does not fit all and it is unrealistic to assume your business has the same needs as one in a completely different industry. Flexible benefits allows you to offer coverage to a diverse workforce.
Attracting top talent and keeping employees healthy and productive adds value to your bottom line. If you are interested in learning more about Small Business Benefits, we encourage you to Contact the experts at DENT Benefits for a complimentary consultation on your employee retention strategy.
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.