One of the best and easiest ways to get and keep talent on board is to offer impressive benefits packages that would attract top talent to your company.

Employee benefits are a different form of compensation, separate from one's regular salary. Benefits can affect a team member's sense of security, motivation, loyalty, job performance, and even quality of life.

So how does a small business even begin to build a desirable compensation and benefits package for the first time?

Here are five steps to help you create a cost-effective, comprehensive, and competitive benefits program for your team:

1.   Review your talent goals and budget

Start with the basics of knowing why you want to offer benefits to your team members. Is it to stand out in the labor market? Is it to attract highly qualified applicants to your company? Is there a motivating human resources factor? Be clear about your motivators.

It’s also a good idea to take financial inventory. Operating within a realistic budget can help you narrow down which perks to offer.

2.   Know the required benefits

There's a good chance you are already offering a few benefits to your staff – the ones required by law.

Some of these mandatory benefits include:

●      Social Security

●      Unemployment insurance

●      Workers' compensation

●      Disability insurance (required in select states)

●      Leaves of absence

Figure out how much it costs to offer these obligatory benefits so you can include them in your budget allocation. Clearly communicate them to your potential employee as part of the total compensation package. 

3.   Choose extra benefits you want to offer

Non-mandated employee benefits are up to you to include. Benefits packages are significant considerations when individuals evaluate job offers. Employers know this and are wise to offer competitive packages wherever possible.

You get to decide what non-mandated benefits you want to offer. Here are a few options you might want to consider:

●      Health coverage – Burnout is inevitable sometimes, especially during peak seasons. Keep employees healthy and reduce absenteeism by making sure they have a reliable and affordable health plan when things go sideways – or just need a tune up. 

●      Life insurance – Protect your team members’ families by allotting a certain amount to cover their beneficiaries in the event of death. 

●      Disability insurance – Look out for your staff by setting up a contingency allowance that can replace their income if they cannot work due to accidents or unexpected illnesses. 

●      Retirement savings plans – Offering contributions to retirement plans, such as a 401(k), can help you stay competitive. You can even go above and beyond by setting up an employer matching program, wherein you match your employees’ contribution, to encourage a long-term career.

●      Paid time off (PTO) – Most employees expect companies to offer paid time off for national holidays, vacations, and sick leaves (standard total leave is at least three weeks per year).

Consult with your tax professional on what makes the most sense for your company and employees.

4.   Highlight special perks

Emphasizing perks that can impact the well-being of your team members and reinforce company culture can make your offer more inviting.

These can include options like work schedule flexibility, remote work, training, gym memberships, clothing allowances, and more.

Run surveys with your employees and use job interviews to ask potential employees what benefits they’d be excited to have.

5.   Draw the total compensation package picture

Let your employees fully appreciate all the benefits you're providing by giving them an annual total compensation statement. The benefits’ dollar equivalent will show them how much more they’re actually getting “paid” than their yearly salary.

INVEST IN YOUR EMPLOYEES IN 2022 AND BEYOND

Your team members are your business' best assets. A well-researched employee benefits package that fits the bill and aligns with your human resource goals can help your company perform better.

Show your new and existing employees you value them with excellent perks, starting with an essential benefit like health coverage.

Selecting a good health insurance plan for your company can be challenging, but HealthChoice of Michigan is here to take the guesswork off your plate with its Small Business Plan.

We provide comprehensive health, dental, and optical benefits for Oakland and Wayne County businesses through an extensive network of Metro Detroit's most respected physicians and hospitals.

With a flat rate of $240 /month per team member, regardless of age or gender, you can afford the best coverage for your team – and they can afford the care they need. 

Learn more about our Small Business Plans here.