Small and medium sized companies often find themselves at a crossroads. Many have the ultimate goal of growing and developing into larger companies. To achieve this, they look to minimize operational costs in order to invest in growth and expansion over time. Most of these cost-saving tactics target employees and HR costs, because they can be quite high for companies of this size.
However, investing in the workforce is one of the best ways for small and medium-sized businesses to grow. It is important for such companies to attract and retain employees by offering competitive employee benefit packages.
A typical effective employee benefits package for a small/medium-sized company should include the following components:
With the high and unpredictable cost of medical treatment in the U.S., most people consider health insurance as a top priority. Any employee benefits package should begin with health insurance coverage for employees and their families. While research shows that the employee portion of healthcare benefits has been increasing in recent years, it’s still necessary to have sufficient employer health insurance if you want to attract the top talent available in the labor pool today.
Short-term disability benefits
Short-term disability is a benefit that covers employees who are unable to work for a brief period due to an injury or sickness. The benefit offers employees a portion of their income for the time that they are unable to work. Some companies provide their own short-term disability benefit programs, while others are managed by their third-party providers. Maternal and paternal leave periods are also often categorized under short-term disability for benefit purposes. In the District of Columbia and five other states - New York, Rhode Island, New Jersey, Hawaii, and California - employers are legally required to provide temporary disability insurance.
Giving your employees time off work is an essential part of boosting their productivity in the workplace. Employees often return to work rejuvenated and ready to perform after getting a much-needed break. Research shows that vacationing will improve employee happiness and productivity when they return.
An employee benefits package should include some paid vacation time to make it easier for workers to enjoy some extended days off. Some companies today are also offering deals or rewards with certain hospitality and travel brands.
EAP and Elder Care Benefits
Employment Assistance Programs are also becoming a necessary component of benefit packages offered by small/medium-sized businesses. EAPs assist workers in dealing with issues that they (or their families) face that could hinder performance in the workplace.
For every $1 that is invested in EAPs, companies receive a $3 ROI. For small and medium-sized businesses, this kind of return is well worth it, even though it may not come in the form of direct dollars added to the bottom line.
Similarly, elder care helps employees handle the burden of caring for aging loved ones, which is especially challenging when they also have to take care of young children. With the right elder care benefits your business can alleviate some of these challenges, improving employee focus and reducing absenteeism.
Want to learn more about how to choose benefits that align with today’s typical small-to-medium business? Schedule a meeting with the team at Senior Providers Network to see how we can help.