Starting a small business brings with it a number of challenges. One of these trials can be setting aside enough of a budget to provide competitive benefits to your employees. Understanding how to create an impressive benefits package and learning about your options to secure benefits at a reasonable price can help you figure out how you can offer these perks.
Small businesses that are just getting started can work with a human resources (HR) outsourcing company with experience in benefits management. Benefits management packages are customizable, so you can pick options that fit your needs and your budget to help your business succeed.
The Importance of Competitive Benefits in the Market
In todayâ€™s market, a business that does not have a solid benefits package might be passed over by potential employees. Some employees value benefits even over pay raises. The exact benefits that you will need to offer to stay competitive will vary based on a few factors, including:
- Your industry
- Your location
- Your competitors
Some industries are expected to offer more benefits than others, and if you fail to provide employees with these perks, they may decide to work elsewhere. Likewise, certain areas of the country will demand better benefits packages than other locations. And, finally, if your competition provides employees with a better benefits package, you will likely lose workers.
Determining What Benefits Your Business Needs
Before you can decide what portion of your budget should be set aside for employee benefits, you need to figure out which benefits you should offer.
Health insurance may be the first option that springs to mind when thinking about employee benefits, but it is not alone. There are many additional benefit options for you to choose from, including:
- Retirement plans
- Parental leave
- Life insurance
- Paid time off
- Health and wellness programs
- Education incentives
Your company might also think about offering ownership rights or even reimbursement for employee transportation.
The benefits you decide to offer will depend on the exact needs of your business. These perks are very attractive to employees, but they can all add up to a tremendous drag on your budget.
Methods to Afford Competitive Employee Benefits in a Small Business
Small businesses often run on a shoestring budget, especially when theyâ€™re getting started. You might feel like you do not have the funds to spare for employee benefits. However, you often need benefits to draw employees, who can help you increase your revenue. Luckily, you do have options that ensure this situation is not insurmountable.
Some small businesses work with insurance companies to handle their benefits packages, but this can get expensive very quickly. Other companies work with alternative benefits providers, though these organizations may not offer everything you need.
Many new businesses look to professional employer organizations (PEO) to handle benefits administration. A PEO can handle all of your HR needs externally. They work by pooling the costs and needs of many small businesses together, allowing you to enjoy the benefits that would normally be associated with a much larger company at a cost you can afford.
A PEO works with many companies, which means they can negotiate with insurance companies for better deals on benefits, allowing you to stay competitive. PEOs also offer other HR services, which can lower additional costs for your business.
You could also choose an administrative services organization (ASO) to handle your benefits needs. These organizations will take care of all of your HR and payroll needs on an outsourced basis. This can save you money on the costs associated with running a HR department. You can your savings funnel into other areas of your business.
Finding the Benefits Program That Works for You
Determining which option you want to use to pay for competitive employee benefits will impact your small business now and in the future. Einstein HR offers both ASO and PEO human resources outsourcing to address your HR needs. We offer full packages, or you can pick the benefits you want that meet your budget.
We offer national services, so you can draw on the benefits associated with an outsourced HR department no matter where youâ€™re located. We have 11 years of experience and will help businesses in any field. Put your trust in a company with the skills and experience necessary to successfully handle your benefits so you can remain competitive in the market. Contact us today at (770) 766-4180 to find out exactly what we can do for you.