Small business owners have a lot to offer when it comes to employee benefits. While larger companies may be able to provide more in terms of perks, small businesses can still compete by offering an affordable health plan and other employee benefits that aren’t as costly.
Benefits are an essential part of compensation packages but can be difficult for small businesses. There are many affordable small business employee benefits that you can afford.
Health insurance is one of the most expensive benefits a company can provide its employees. However, there are some ways to reduce the cost of providing health insurance for your staff.
First, look for a plan that offers high deductibles and co-pays for medical services. This will make it less likely that you will have to pay out-of-pocket costs every time an employee goes to the doctor or fills a prescription. Second, consider offering plans with low premiums and high out-of-pocket maximums. This will decrease your monthly contribution while providing coverage for major medical expenses like hospital stays and surgeries. Finally, if possible, offer several different kinds of plans so that some employees can choose less expensive options (e.g., if someone has no dependents, they may not need comprehensive coverage).
This type of coverage provides medical care and disability payments if an employee is injured. It covers medical expenses, lost earnings, and replacement services while the injured worker cannot work. Workers’ compensation usually provides a lump sum benefit to cover these costs.
Health savings accounts (HSAs) and flexible spending accounts (FSAs) allow employees to put aside money from their paycheck before taxes each pay period toward health care expenses eligible for reimbursement. These accounts provide a way for employees to manage their health care costs while saving money at tax time because they can be used to pay for out-of-pocket medical expenses without worrying about losing any money due to taxes on their end.
These are retirement savings plans sponsored by employers, where participants can save money for retirement with pre-tax dollars. The employer is required to match employee contributions up to a certain percentage. This is an excellent way for you and your employees to save for retirement because it reduces their taxable income and gives them more money to invest in the future.
Short-term disability insurance can help pay your salary while away from work because of illness or injury. The benefit varies greatly depending on the company and its group policy. Still, it typically pays 60 percent of your income for six months or more if you cannot work due to a disabling condition. Health insurance helps cover the cost of medical expenses not covered by Medicare or other programs. Group health plans may include prescription drug coverage, dental services, and vision care coverage for dependents under 21.
Identity theft protection is one of the most important employee benefits, and it’s a great way to keep employees’ finances safe and secure. Identity theft protection includes an annual credit report review, monitoring of credit reports, alerts when changes occur in credit report information, and assistance with filing disputes if needed.
Some companies will offer to help pay off your student loans if you are working in the company for at least two years. This is a great way to help young employees with college or graduate school student loan debt. The company will usually match whatever amount you put towards your student loan, up to a specific limit.
Dental insurance offers similar perks to health insurance — it helps keep employees healthy and protects them against significant expenses like crowns and root canals — but it doesn’t have as much of a legal requirement as medical coverage. Still, dental insurance is something many people want and expect in their jobs, so it might be worth looking into if you’re trying to attract new hires or retain current ones who may be looking for jobs with better dental plans.
Flexible work options are becoming more popular among businesses today. You’ll want to make sure you offer this as an option so that employees can schedule their time around family or other commitments they may have outside of work.
Providing employees with paid time off to volunteer is a great way to help them give back. It allows employees to fulfill their personal goals of giving back, but it also helps your company’s image and can build stronger work relationships between employees. In addition, volunteering can help improve employee morale and increase the overall commitment of your employees.