In the post-pandemic era, employee benefits have taken on a new dimension of importance. However, due to rising expectations for benefits that were introduced during COVID-19, there is often a gap between what employees want versus what small business owners are prepared to provide.
Ipsos’ Future of Work study recently surveyed more than 1,100 full-time and part-time American workers about their employer benefits. Nearly half (49%) of respondents reported that their organizations’ benefits made them more likely to stay at their current jobs.
Thirty-four percent of Ipsos’ respondents said their employers were now offering mental health and wellbeing services such as employee assistance program, discounts on therapy, and coverage for mental health care in a health insurance plan, while 28% mentioned paid parental leave as a core benefit.
While typical voluntary benefits like retirement contributions (54%) and paid time off (57%) continue to top the list of what employers are offering their workforces, newer services such as fertility (9%), adoption (9%), and gender transition (6%) support are gaining traction.
While it’s not fair to compare small businesses with larger organizations with more resources, many owners recognize that improving benefits is a critical exercise in attracting and keeping higher quality talent.
“The hiring marketplace is competitive for a small business, so we need to make it easy for people to say yes to us, and part of that equation is employee benefits,” said Robert Brill, owner of Brill Media.
Brill has consciously evolved his benefit offerings over time. They include the accrual of three weeks of vacation time and health insurance, as well as new parent leave, access to Teladoc for quick phone medical help, and extra days off for tenured employees.
Rather than decreasing benefits now that the pandemic crisis has mostly passed, Brill has increased his “as a thank you to the people who stayed with us,” he said.
Wendy Wang, owner of F&J Outdoor, also enhanced her employee benefits during the pandemic and has no plans to dial them back. “We increased the flexibility of our working hours and introduced remote work options to ensure the safety and wellbeing of our team,” Wang said. “We believe these changes have positively impacted our work culture and will continue to do so in the post-pandemic world.”
F&J Outdoor offers a range of benefits including health insurance, gym memberships, professional development courses, and tuition reimbursement. “We believe that a happy and healthy employee is a productive one, and these benefits reflect that belief,” she added.
For Muffetta Krueger, owner of Muffetta Household Staffing Agency, selecting benefits involved a thoughtful and thorough process. “We conducted surveys and held discussions to understand the specific needs and preferences of our employees,” she said. “Additionally, we sought professional advice to ensure that the chosen benefits align with both our budgetary constraints and the wellbeing of our workforce.”
Wang added that legal compliance adds another layer to benefit selection, saying that depending on the location and size of the business, there may be legal requirements to provide certain benefits to comply with labor laws.
How should small business owners go about ensuring that their benefits package meets the needs of their workforce and stays within their means? The following tips may prove helpful.
Start with the basics.
Research your competitors’ offerings to determine the benefits that are considered standard in the industry and for your size organization. For example, providing company-sponsored health insurance may be a given in some situations, while in others it’s at the employer’s discretion.
Choose extensions based on feedback.
Hold open dialogue sessions and leverage technology to survey your employees often. The results should provide major insights into the benefit trade-offs that your employees are willing to make. An ideal benefit supports the values of employees as well as the values of the organization.
Keep in mind that supplemental benefits you offer may vary depending on demographics, life stages, and individual circumstances – and are likely to change alongside market shifts and societal disruptions like a pandemic.
Monitor and adjust your strategy.
Krueger suggested that small business owners analyze claims data and participation rate in benefits programs to accurately gauge their effectiveness. Converse with your HR representative (if you have one) to get an important perspective on the evolving needs of your team and partner to continuously improve offerings.
Keep enrollment simple.
If your employees don’t know certain benefits exist, they can’t take advantage of them. However, it’s not unusual for leaders to change existing benefit offerings or add valuable new ones without alerting their workforces. There’s Communicate about your benefits frequently and in all mediums so re enrollment instructions and dates don’t get lost in the shuffle. Make it easy to sign up and chart a clear path to help or questions about a given benefit.
Even for small businesses, the options are broader and more holistic than ever before – from professional development opportunities to self-scheduling tools and wellness programs. Being willing to think flexibly about benefits will help close the gap between what employees are looking for and what you provide.
Perhaps Krueger said it best: A well-crafted benefits package is not just an expense; it's an investment in the success and longevity of your business through the satisfaction and productivity of your workforce.
This piece was originally published on AMEX Business.
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