Why Small Businesses Should Seriously Consider Offering Employee Benefits

Why Small Businesses Should Seriously Consider Offering Employee Benefits

 

When you’re running a small business, every dollar and decision counts. It’s easy to think of employee benefits as something only big corporations can afford, but here’s the truth: offering a thoughtful, even modest benefits package can make a huge difference in how well you attract and keep good people.

 

The Business Case for Benefits

We’re in a super competitive job market right now. If you’re a small business trying to hire and retain top talent, you’re up against companies offering some serious perks. But it turns out benefits don’t just help with recruitment—they also build loyalty.

 

According to a study from Principal Financial Group, about 70% of small and mid-sized business owners said that offering benefits helps them attract new hires, and 71% said it helps them retain the folks they already have. That’s not just fluff—that’s a strategic move.

 

Plus, a survey from PeopleKeep showed that 82% of employees say benefits are a key factor when deciding to accept a job. That means paychecks alone might not cut it anymore.

 

Which Benefits Give You the Most Bang for Your Buck?

 

Here’s a breakdown of the benefits that matter most to employees—and the ones that could give you the highest return on investment:

1. Health Insurance

• Almost half of workers say health coverage is one of the main reasons they took their current job.
• Part-timers with health benefits stay in their roles way longer—about 39 months compared to just 23 months for those without.

2. Retirement Plans

• Around 60% of employees consider retirement benefits a major reason to stick around.
• But only about a third of small businesses offer them, which means there's room to stand out here.

3. Flexible Work Options

• Flexibility can cut turnover in half in some industries. That’s a game-changer for businesses where finding and training people is a real cost.

4. Wellness Programs

• These programs don’t just show you care—they can pay off. Studies suggest companies see $3–$6 in return for every $1 spent, thanks to lower healthcare costs and fewer sick days.

5. Mental Health Support

• About 63% of employees say mental health benefits matter to them, but only 5% of small businesses offer them. That’s a big opportunity to fill a real need.

6. Childcare Assistance

• Businesses offering even small-scale childcare support have seen dramatic drops in turnover—especially valuable if you’ve got working parents on your team.

Tips for Making It Work on a Small Business Budget

• Start with the basics: Health insurance, dental coverage or a simple 401(k) match can go a long way.
• Ask your team what matters to them: You might be surprised at which benefits they actually care about most.
• Don’t go it alone: Look for a good broker with a long history in the market, trends, systems, and how carriers work.
• Communicate clearly: Even the best benefits won’t matter if your employees don’t know they exist or understand how they work.

Final Thought

Offering benefits isn’t just about checking a box—it’s about building a workplace where people feel valued, supported, and motivated to stick around. And the best part? You don’t need to offer everything under the sun. Just start with what makes sense for your team and grow from there.

 

About Us

With three decades of expertise in the benefits landscape, Bear Benefits is your trusted ally. We know the ins and outs of the market and how to navigate the complexities, ensuring you get the most from your carrier with minimal effort from both employers and employees. Ready for a stress-free conversation that opens new doors? Connect with us at www.trustbearbenefits.com, and let’s schedule a meeting that could transform your approach to benefits!