Attracting and retaining the best talent involves more than just salary or wages. Today’s hiring landscape is highly competitive. Your small business has to offer professionals more than just a paycheck because they’re looking for meaningful benefits to support their real-life needs. Unfortunately, many small business leaders still work under outdated assumptions about the most important benefits. Knowing what employees genuinely want out of their benefits means empowering your small business to leverage modern solutions, ranging from professional employer organizations to ancillary benefits. Accomplishing this creates a business culture that fosters productivity, growth, and loyalty.

The Evolution of Small Business Benefits

Historically speaking, small business benefits leaned to the minimal side; if anything was provided, it might be paid vacation and health insurance. Smaller human resources departments and limited resources made robust offerings difficult or impossible. Today’s employees expect more, however, and they should. Most of the modern workforce consists of Millennials and Gen Z, and they want comprehensive benefits packages that address their total wellness. Comprehensive coverage must include physical and mental health, financial security, and work-life balance.

Flexibility Is King

If the pandemic taught small businesses anything, flexibility is more of a necessity than a luxury. Compressed workweeks, flexible hours, and remote work options are among the most desired employment perks. Employees want autonomy in when and how they work, which can be a golden opportunity for a small business. Massive corporations often have rigid structures, but smaller companies can adapt quickly by creating flexible arrangements for employees and the business. You don’t have to let everyone work from home daily, but you can build policies that trust employees to manage their own time and still be accountable for their outcomes.

Mental Health Support Isn’t Optional

Mental health is at the forefront of many workplace conversations, and good reasons exist for this. Anxiety, stress, and burnout are all impacting professionals across many industries. Unfortunately, traditional benefit packages are known to skip this area altogether. Today’s talent wants access to mental wellness programs, counseling, and therapy. Access to mindfulness apps, Employee Assistance Programs, and subsidized therapy sessions are all signals that your small business truly cares about the overall well-being of its employees.

You don’t have to develop these from scratch. Professional employer organizations offer support for mental health and wellness as components of their comprehensive benefits offerings. This makes it easier for small businesses to stay current with evolving needs.

Ancillary Benefits Make a Big Difference

Health insurance is still a high priority, but ancillary benefits can complete a competitive benefits package by including dental, life insurance, vision, and disability coverage. Such secondary benefits might look optional at first glance, but many employees expect them. Providing these benefits demonstrates to employees that they’re working for someone who looks past the basics and is willing to invest in their long-term wellness. The great thing about this is that many benefits are more affordable than expected, particularly if you access them via a PEO or group plan. These perks can dramatically improve your small business appeal as an employment destination and even help you compete with bigger companies for talent.

Financial Wellness Is the New Frontier

Employees want help in handling their financial futures. Competitive wages and salaries are a good start, but you should offer student loan repayment assistance, 401(k) matching, and financial planning resources as well. Over half of employees say that financial stress negatively influences their work productivity. Helping them feel financially secure is a direct investment in the overall performance of your small business.

Career Development and Growth Opportunities

Benefits packages should cover more than insurance and health plans. Growth opportunities should also be included. Many employees want to believe their current role has the possibility of advancement. Win them over as an employer willing to invest resources into their professional growth and development.

Offer training and mentorship programs or cover the expenses of industry certifications. These options motivate employees and make them feel like they’re long-term contributors instead of short-term labor. Upskilling your small business workforce is excellent for the bottom line because a team with more skills can handle more responsibilities, be innovative, and minimize the need for external hires.

Partnering With a PEO: A Game-Changer for Small Businesses

You might feel intimidated by the idea of taking this on alone, but there are options for help. Professional employer organizations can partner with small businesses by offering access to benefits, compliance support, and HR services. A co-employment model means a PEO lets your small business provide big-company benefits without a big-business budget.

Pooling employees from multiple companies together enables PEOs to negotiate better rates on everything from health insurance to ancillary benefits. Delegating HR administrative burdens to them frees up your focus to stay solely on the growth of your business. The National Association of Professional Employer Organizations highlights research showing that small businesses that partner with PEOs are more likely to stay in business, enjoy lower turnover rates, and grow faster.

Think Human First

When it’s all said and done, small business benefits involve more than cost management and compliance. Everything revolves around people. What are the things your team cares about? What do your employees think about at night? Do you know what inspires them to stay with your company and grow?

Don’t just mimic what big companies offer. Start by listening to the employees in your small business. In doing so, you can construct a benefits package that genuinely resonates with them. It might include flexible work scheduling, ancillary benefits, or financial and mental wellness support. With a potential professional employer organization partnership, you can access more options. Culture is more critical than cubicles in any business; employees crave connections over corner offices. You’ll win in the talent game when your small business rethinks its benefits with innovation and empathy.