Attracting and retaining employees is a constant struggle for organizations of any size, but it’s particularly so for small businesses. With smaller teams, employers need to hold onto talent whenever possible. And that can be a challenge, especially when resources are scarce as they are
currently amid the lingering effects of the COVID-19 pandemic.
That’s why it’s critical for small employers to tailor their benefit offerings in a way that attracts
and retains the most employees. One of the best ways to start this process is by surveying existing and potential employees.
While each workforce will have unique needs and interests, there are some commonalities seen
among small business employees. This article outlines six of the most popular benefits that small
businesses are using to attract and retain employees.
1. Health Insurance-Health insurance is consistently one of the most desired benefits among small
business employees. That may be because health care is so expensive and is unaffordable without
employer-sponsored insurance. Having good health coverage is more critical than ever. This provides
employers with an opportunity. By offering generous health benefits, employers can compete for top
talent. In fact, doubling down on health insurance might be a better option for some employers than
adding other ancillary benefits that employees don’t need or want.
2. Leave Benefits-The ability to take time away from work is an important consideration for employees.
Employees may have more caregiving responsibilities than they had before—making scheduling
flexibility all the more important. Leave benefits will vary by workplace, but they typically include
paid time off (PTO), vacation days and sick time. These types of leave usually come with specific use
requirements. Employers could allow faster PTO accrual, providing more sick days or allowing for
flexible scheduling.
3. Performance Bonuses-Employees want to be recognized for their hard work. Failing to do so can
lower morale and affect retention. Introducing performance bonuses as an employee benefit can be a
way to combat this. Performance bonuses will vary, but the general idea is to compensate employees
in some way for a job well done. How this looks in practice will depend on the employer. For instance,
employees might receive incentives such as gift cards, cash, additional PTO or other perks, depending
on their achievement. However, before implementing such bonuses, employers should ensure
compliance with any applicable workplace laws regarding employee compensation.
4. Retirement Planning Financial security is very important to employees, and that sentiment grows
as employees near retirement age. Employees want their employers to invest in their retirements in
return for years of service. Offering a 401(k) with contribution matching can be a powerful attraction
and retention tool, as it demonstrates an employer’s investment in their workers in the long term.
5. Professional Development Employees may leave a workplace simply because they want other
opportunities or need more of a challenge, rather than being driven solely by compensation.
Generally, this involves cross-training employees on other positions or otherwise preparing them to
take on additional responsibilities. This helps provide the employee with more growth opportunities
while still keeping them within the business. Offering such development opportunities also signals
to prospective employees that a workplace has upward mobility and is willing to help workers along
with their career pathing goals—two factors that can weigh heavily in recruiting conversations.
6. Wellness Benefits
Wellness is a hot topic these days, and employees are looking more and more for employers who take
wellness seriously. For instance, benefits may include mental health counseling, health breakroom
snacks, gym memberships, fitness trackers, yoga sessions or other perks. When it comes down to it,
employees want to feel like their employers care about them as individuals. This means prioritizing
well-being.
Knowing which employee benefits to offer as attraction and retention tools isn’t always easy. One of
the best places to start is by surveying current and prospective employees, as the offerings are meant
for them.
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other potential incentives. Call 281-448-3040 to speak with a Commercial Agent. You can also visit us online at www.cobensrv.com. CLICK HERE FOR UNIQUE PLANS
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