Think your small business can’t afford to offer benefits? Think again.
In my years of helping small business owners explore benefits, the most common hesitation is that offering benefits to employees will be unaffordable for their business. The reality is that many benefits can be offered at little or no cost to the business. And, it may save you money in lower turnover and training costs.
Many of our clients have saved time and money while making their small business more competitive by attracting and retaining top talent by offering benefits that employees truly value. We’ve identified four steps you should follow to get started with deciding which benefits are right for you and your employees.
1. Set a Budget
Before looking at benefit packages to offer, it’s important to know what your business can realistically afford. We suggest starting with a total monthly dollar amount that you feel comfortable building into expenses. This will then allow you to look at an annual number and allocate a per employee budget.
2. Determine Your Strategy
It’s important to have a general goal in mind when deciding to offer benefits to avoid wasted resources. The strategy may evolve over time, but knowing where to begin will help guide the decision-making process. While no two business are the same, here are some common questions that may help you narrow down your objectives:
- Are you trying to retain only key employees?
- Is your business growing?
- Is high turnover hurting your bottom line?
3. Survey Employees
Small business owners often assume offering benefits means paying for an expensive medical plan. However, if employees already have medical coverage elsewhere, you may be better off offering lower cost supplemental plans that employees truly value. At Lewer Benefits Group, we can assist with a survey and gather the data for you. Not only does this provide you a clear strategy, but it’s also a great way to engage with employees during the process.
4. Understand Your Options
Once you have an idea of your budget, strategy and employee need it’s important to know what’s available. Working with a trusted advisor who understands your industry and the unique needs of your employees can ensure your offering comes together properly. While the cost of benefits is a significant aspect, don’t ignore customer experience and consultative services as these are essential to ongoing success of your plans.
With all this in mind the real question is can you afford to NOT offer benefits? I invite you to contact us and see for yourself how a customized employee benefit package may save you money in the long run.