Offering benefits to prospective employees is about more than creating a positive work environment - it’s an excellent way for an organization, especially a small business, to set itself apart from the competition for the best talent. With employees having a much deeper pool of potential employers, a stellar benefits package can easily be the deciding factor when accepting a job offer. Whether you already have an existing package or are just starting and looking to build the right package that balances your budget with your goals, this blog will help you understand your options to create the right package for you.
Medical, Dental and/or Vision Insurance
The Need:
One of the primary benefits an employer might offer an employee - and one that almost every employee is looking for when considering a new role. Medical, dental and vision insurance don’t just cover regular check-ups and healthcare; they give employees a safety net against unexpected health issues and the expenses that can accompany them.
Advantages for Businesses:
Besides increasing employee retention, reducing absenteeism, and enhancing overall job satisfaction, these benefits can help your staff stay healthier, happier, and generally more productive without worrying about unexpected health costs.
Flexible Spending Accounts (FSAs) and/or Health Savings Accounts (HSAs)
The Need:
While regular medical, dental, and vision benefits can be great, they can sometimes be restrictive for employees, as there are typically strict rules regarding their usage and what can be claimed against them. A FSA or HSA can be a great addition to your benefits package either to supplement your existing benefits or as a lower-cost option to offering traditional medical, dental, and vision. These accounts allow employees to claim a broader range of expenses, from gym memberships and meal prep kits to the more expected health expenses such as check-ups and eye exams.
Advantages for Businesses:
While these accounts offer great flexibility for employees, they also provide notable perks for businesses. Not only are they often lower in cost than other benefits, but they can also lead to potential tax savings for employees and employers.
Retirement Plans
The Need:
Planning for retirement is a universal concern. Everyone wants to have a retirement where they are free of worry about their day-to-day expenses and can enjoy their time as they see fit. Retirement plans offer a way for employees to make this goal a reality.
Advantages for Businesses:
By offering retirement plans as a part of your benefits, you will attract not only great talent but also the kind of employees who are thinking about long-term success. Not only will this affect your ability to bring in new talent, but a good retirement plan helps retain top-tier talent, reducing turnover and associated recruitment costs.
Read more: The Best Retirement Plan Options for Small Business Owners
Life and/or Disability Insurance
The Need:
Life can be unpredictable, and unfortunately, that sometimes means dealing with unexpected accidents or health issues. Life and disability insurance provides a safety net to employees, giving them the peace of mind to do their best, knowing they and their families are protected.
Advantages for Businesses:
At first glance, offering Life and Disability Insurance can seem like an expensive addition to your benefits package with less return than other options, but that couldn’t be further from the truth. Not only is this benefit less common, making you stand out all the more, but having this additional layer of protection leads to increased employee morale and job satisfaction.
Personal Time Off
The Need:
Your benefits packages don’t have to be all about finances and an investment on your part. They can also incorporate things like Personal Time Off (PTO). PTO is more than a benefit - it’s essential to good work-life balance and creating a healthy, optimal work environment. Taking time to rest and recharge is a must for every employee, and having PTO encourages employees to take time for themselves without undue financial stress.
Advantages for Businesses:
While there are requirements to offer a certain amount of PTO, going above and beyond can help you recruit talent and keep your existing employees from experiencing burnout. Well-rested employees are more productive and innovative and, even better, are less likely to leave or experience health problems due to overworking.
Retirement and Benefits Planning Services with Greater Midwest Financial Group
Planning for Business Owners/Executives
For business owners, benefits planning requires additional considerations and paperwork.
Work with an advisor and get answers to your biggest executive benefit questions:
- What are the different types of stock options available to me and what are their tax consequences?
- Should I use my deferred compensation plan? How much of my compensation should I defer?
- How do insurance and fringe benefits impact my need for other insurance outside my company?
- How can I best navigate tax and planning issues?
Benefits Planning for Individuals
We also offer advice for your employees. They can receive support with choosing these benefits and more:
- Health insurance
- Life insurance
- 401K/403b
- Stock options
- Deferred compensation
- Long-Term Disability Insurance
- Employee Stock Purchase Plan (ESPP)
- Health Savings Account (HSA)
- Flexible Savings Account (FSA)
Greater Midwest Financial Group is a financial advisor firm serving St. Paul, Minneapolis and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management and other personal finance needs.
