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How to evaluate small business benefits to offer

Generous and unique employee benefits can go a long way toward attracting loyal talent.

Leading your own small business means attracting and retaining talent. And deciding what types of employee benefits to offer your workforce as part of a compensation package can go a long way toward ensuring success. Whether you're providing generous sick leave or promoting well-being on the job, there are plenty of small business benefits that can make your company a great place to work. Here's what to keep in mind when evaluating how to offer benefits to employees.

401k matching

When you are determining how to implement small business employee benefit packages for your staff, 401k considerations are an appealing place to start. Making it easier for your staff to save for retirement promotes financial security — and may even provide tax incentives for your small business. Consider offering 401k matching as an added perk, which means the company contributes a set amount toward an employee's retirement savings based on the employee's contribution.

Volunteer hours

Empowering your workers to designate volunteer time away from their desk can do double duty and help them improve lives while appreciating their own work environment. Designate a certain number of paid volunteer hours — say 30 per year — for employees to help local nonprofits and make a difference in their community.

Paid time-off policy

Paid time-off (PTO) policies can be a critical part of a generous compensation package. Consider offering a flexible PTO policy to cover vacation, sick leave or anything in between that can help employees deal with unexpected challenges. Giving your workers the freedom to use their PTO as they see fit can go a long way toward helping them feel valued on the job.

Health savings accounts

Offering a health savings account (HSA) option — along with a comprehensive group health insurance plan — is simple and allows employees to get the medical care they need while helping them save money on insurance premiums. As a small business, you'll need to set up the plan with a health benefits provider that allows employees to contribute pre-tax dollars to the HSA.

Wellness perks

With so many hours on the job, employees want to feel that a company truly cares about their well-being. Gym membership reimbursement, implementing a "no-meetings"day each week and offering standing desks are easy tweaks that create a respectful and uplifting work environment.

Flexible work setups

As you continue to consider how to offer benefits as a small business, remember not every incentive has to be financial. Even if you're not enabling your staff to go 100% remote, many workers are craving a hybrid workweek so they can spend some time working from home. Consider offering flexible working policies — even if you're promoting just one day out of the office — to help retain talent.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

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