As a small business owner, you must compete to attract quality employees against large corporations that can often afford to offer higher salaries for similar positions. One of the ways to stand out is to offer employee benefits that even the playing field. If you are looking for a way to differentiate yourself as an employer, you need to consider the advantages of offering incentives to your employees through benefits.
Healthcare, Dental, and Retirement Benefits
The main three benefits that companies offer to employees are: health/dental insurance, vacation time, and retirement savings. Potential employees are sure to ask what you offer in terms of these benefits, as well as paid maternity/paternity and sick time. All employer contributions to insurance premiums and retirement plans are tax deductible, but the advantage of offering better options is to compete in a competitive job market. While there is a cost to the company, it can be less than a higher salary and improve the caliber of potential applicants for your business.
Intangible Employee Benefits
Not all benefits are monetary-based. Small business owners can be creative when compiling employee benefits to offer a more attractive workplace to potential employees. Thinking outside of the conventional vacation, sick time, retirement, and insurance benefits boxes can create opportunities to obtain and retain quality employees. Some options to consider include:
- Flexible scheduling. Not everyone wants to work from 8-5 or a similar set schedule. Offering split shifts or other options can appeal to those who have time restrictions in their life; helping them maintain a life/work balance.
- Telecommuting. The ability to work from home, even one or two days a week, can be a big bonus for employees. It saves them time and the cost of commuting but does not cost a dime to you or your company.
- Advancements and training. What many people want is the ability to grow in their career. If on-the-job training is available with advancement opportunities, many people will choose a smaller firm where they can work their way up and gain experience or knowledge.
While salary may be one of the first factors potential employees consider when looking for a new position, it is not the only one or even necessarily the deciding factor. Offering employee benefits can make your business more appealing to qualified candidates. To learn more about how employee benefits impact your business’ finances and tax liability, contact our office at 952-545-0424.