Productive, hardworking and motivated employees are essential to any business. That’s why when your stat-up begins to expand and grow it’s vitally important that you look after all existing and new members of staff. You could have the greatest idea in the world but without the right staff it will never become a successful business. There’s a common myth that employee benefits are only something large companies offer and can be an unnecessary expense for start-ups, but this simply isn’t true.
Advantages of Employee Benefits: There are some advantages which offer benefits to the employees even a small business organization with a small budget. Those are discussed below:
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Improved Loyalty
Research has shown that for 60% of employees a benefits package is extremely or very important for their employer loyalty. It’s not just a pay rise that can be used to persuade employees to stay and when offering benefits, it can be advantageous to provide customisable options. Not only is loyalty important to improve the morale and team spirit of your small business, it saves the costs and time of finding and hiring the right people to replace leavers and stops them going to your rivals.
Better Recruitment
In some cases, employees can be more likely to accept a job if there are benefits offered, even if it means taking a pay cut. While if they are provided on top of a good wage then it can be a great way to attract new talent. Therefore, it’s important to highlight this in both advertising any openings and by mentioning during interviews. Benefits such as flexitime and childcare could be the difference between someone accepting a job or not.
Create a Productive Environment
Attendance can be greatly affected by benefits. On average in the UK 4.3 days per worker are missed a year. The reasons vary but common ones include family commitments, lack of childcare and other appointments. Certain benefits can cut back on falling attendance by providing a solution, while the morale boost of some benefits can improve productivity too.
Culture and Morale:
Compare to big business, small business owners are attached with employees, they work closely with the employees. They also take care of employees and offers benefits. Because of this care for health employees become more loyal and contribute their positivity towards the workplace.
Tax Advantage:
Many employees expect the tax benefits from the company. This is not just like a retirement plan and healthcare. Some other types of the plan through which company and employee both can get benefited. Those are life insurance, tuition reimbursement, childcare reimbursement, cafeteria plans, employee discounts, personal use of a company owned vehicle, cell phones, and meals provided at the office and much more.
A Foundation for Growth: This point considers to be the final advantage for the employee benefits which set from foundation to grow. You can start hiring more employees and offer an attractive package to get the best employees.
The Most Desirable Benefits
From a good pension to wealth management services, the most desirable benefits can range from the straightforward to outlandish wants. It’s up to you what benefits are offered, but these are some of the most popular ones employees regularly request:
- Pension plans: This plan helps to keep more talented employees. They will be knowing they have a good retirement plan which will make them more productive. The employee also can contribute some money for their rapid funding of the retirement, if they get a good deal here.
- Private healthcare or insurance: This will help employees to cover some guaranteed issue. The company has to contribute some amount toward employee premium. This will help to the employee for their unhealthy time.
- Flexitime/work from home options: The small business company must have work from home option then company and employee both will get benefited. Employees will be happy, productive, waste less time to commuting, etc. company get benefited because of no need to pay for office supplies, office snacks, no need to waste time for the useless meeting, no matter where they only need to focus to finish the work on time, etc.
- Parental leave: For small business, parental leave is most important because that is the time when they are very happy, and if any complication they do not mind to leave the job. They can also train the junior employees and take a leave.
- Extra holiday days: Employees must get extra holidays like New Year Day, Memorial Day, Independence Day, Labour day, Thanksgiving day, Christmas day, etc. Every employee expects this from their company.
- Gym membership: Some small company offers gym membership if they have their own gym center. Their employees can go and take free practice.
- Company car: For business, buying car can give tax benefits for the company. Owning the business car is the saving from the tax deduction. The deduction can come in two types like the deduction for ownership of the car and deduction the driving cost which has used by car for business purpose.
- Free fruit/snacks/drinks: When employees work in the office they need some refreshment like fruits, snacks, drinks (tea, coffee, and an office water dispenser, etc.), and much more. The company must provide all those in free of cost.
Some alternative benefits:
- Health Reimbursement Account (HRA).
- Flexible Spending Account (FSA).
- Health Saving Account (HSA).
- Commuter Benefits.
- Fringe Benefits.
Depending on the finances and size of your start-up, some may be easier to offer than others. You can always start off with small benefits and build up as your company grows though, to create a productive and appealing working environment.