As businesses strive to stay on top, it’s important to be able to attract – and retain – a loyal and productive workforce. By some estimates, it costs more than twice an employee’s salary to find and train a replacement. On top of that, churn can damage morale in your workforce.1
A common strategy for maintaining an enthusiastic workforce is to offer better employee benefits. In a brand new study by Guardian, findings show that 74% of middle-income American workers depend on the workplace for most of their financial security.2 This category includes health care, retirement, and other financial and health benefits, such as life, disability, accident, critical illness, and cancer insurance. Moreover, four out of five employees say that employee benefits are the deciding factor when choosing whether to stay in place or leap to a new job.3 Traditionally, bigger companies have provided their employees with the most comprehensive benefits. A 2014 US Bureau of Labor Statistics report noted that 82% of workers at larger companies had access to retirement benefits, while only 50% of those at companies with 100 employees or less had access to similar benefits.4 Big companies also tend to spend more per worker. To stay competitive, look for the employee benefits plans for small businesses that workers are seeking and moreover, let your current employees know what you’re doing on their behalf.
Here are ten ways that small businesses can compete with bigger companies in the employee benefits arena:
Knowing that 65% of employees believe benefits positively impact their overall financial security, make sure that what you’re offering will attract and hold the kind of employees you want.10
1 Suzanne Lucas, “How much does it cost companies to lose employees?” CBS News Moneywatch, Nov. 11, 2012.
2, 3 Guardian Life Insurance Company of America, The 2014 Guardian Workplace Benefits Study.
4 U.S Department of Labor, Bureau of Labor Statistics, “Employee Benefits in the United States--March 2014.”
5 Tara Seigel Bernard, “Financial Advice by the Demographics,” The New York Times, February 20, 2015.
6 Laura Vanderkam, “Do Corporate Wellness Programs Really Boost Productivity?” Fast Company, July 24, 2014.
7 Brenda Porter-Rockwell, “How to Set Up a Flexible Spending Account Program,” Inc., April 21, 2010.
8 Josh Barro, “Illinois Introduces Automatic Retirement Savings Program, a First in the Nation," New York Times, January 5, 2015
9, 10 Guardian Life Insurance Company of America, “The Guardian Workplace Benefits Study: Third Annual (2015)”