Common Small Business Employee Benefits
What are employee benefits?
Employee benefits are a form of compensation in addition to an employee’s salary. While companies are not obligated to provide these benefits, most of them offer some benefits in order to stay competitive and attract employees. These benefits also help employees stay engaged, decrease employee absenteeism, and increases employee retention. Some benefits like healthcare are more desirable and considered essential, while others like office snacks are only considered a nice perk.
Five most important employee benefits
Healthcare is a benefit category, both important and appreciated across all industries and generations. This top-ranked benefit usually consists of medical, dental, and vision coverage. While healthcare benefits have always been popular, with the emergence of COVID-19 they have become increasingly important for employees.
Concerns about pension and retirement savings are among the top stressors employees face currently. Considering that the largest source of income in retirement for many employees will be their 401k savings, this benefit is a significant factor in attracting and keeping employees. By offering pension planning employers have a lot to gain.
From vacation leave, to paid time off and sick leave, having an attractive leave package is something that is considered a priority among all industries and lines of work. Companies offering a reasonable leave package show that they care about employees having a good work-life balance and indicate a healthy work culture.
Companies and employees stand to gain numerous benefits from wellness programs. Employees experience greater morale, better health, and a boost in productivity, while the companies have a great return on investment by lowering health care costs and reducing employee absenteeism. Although the most commonly offered benefit is a gym membership, the list includes benefits like smoking cessation, weight and obesity management, physical examinations, and dietary advice.
Life insurance gives employees the peace of mind that should something happen to them, and in the event of them passing away, their loved ones will have a financial safety net. Life insurance has become a key benefit that sets employers apart and creates a company culture where each employee feels valued.
Examples of common small business employee benefits
Examples of unique and uncommon benefits
More companies are strategically starting to offer some rare benefits that make them stand out from competitors. These benefits are outside the norm of what companies generally offer. Some examples are:
Companies have a lot to consider when it comes to choosing which benefits to offer. They need to be mindful of the needs of their employees and, at the same time, pick a package that is financially suitable for their budget.