The 3 Best Employee Perks to Offer as a Small Business

The race to attract and retain talent can be make or break for a small business. Employees at larger company’s enjoy perks such as a 401(k) match and pet insurance that they would forgo by taking a risk and joining your smaller business.

Hiring your first several W2 employees is daunting. You have to consider payroll taxes, health insurance contributions, and small software expenditures that add up such as a CRM, VOIP system and e-mail.

These are all expenses that eat into revenue, so companies overlook other perks that ultimately help drive employee engagement and sense of belonging.

49% of employees plan to quit within the next 12 months, citing insufficient benefits as a factor (BBSI)

It's clear that businesses now more than ever need to provide benefits that are tailored to their workforce. 

In this blog, we’ll discuss 3 benefits that you can roll out to your company today at little to no cost.

These are all designed to complement a business that’s already offering health, dental and vision insurance since those are a priority benefit.

Not offering health insurance but would like to receive a no hassle quote? Contact us today.

Equity and Stock Options:

99% of businesses won’t up trading hands on the Nasdaq. Employees are aware of this, but it doesn’t mean you’re not able to offer upside to employees. This is in the form of a stock grant or options in a liquidity event such as an acquisition or merger.

There’s no upfront cost (except the equity management platform such as Carta) and it aligns employees interests with the company’s long term growth, fostering a sense of ownership and loyalty.

A common strategy is a 4-year vesting cliff that’s back loaded, 5% / 15%/ 35% / 45%

We also recommend smaller, annual refreshes to the top 50% percentile of employees.

Professional Development Opportunities: 

Employees crave purpose and satisfaction in their work. Offering opportunities for employees to participate in workshops, conferences and cross-team collaboration will help re-energize employees.

Take advantage of your smaller size and fewer barriers to leadership by providing a 360-feedback loop for employees. This can be as informal as a debrief at the conclusion of a project.

Generous Leave Policies:

Recognizing the importance of R&R is crucial for any business. A flexible (unlimited with several parameters) PTO policy is typical best for a small business, as it encourages a healthy work-life integration that leads to increased engagement and productivity, without the cost of paying out unused PTO at the conclusion of an employee's service.

While several state shave paid family leave requirements, we recommend covering a short-term disability policy for employees. This is typically less than $5 per month per employee and ensures that employees are properly able to unplug and spend time with their newborn while receiving a portion of their income for several months.

The Bottom Line

Smaller businesses face serious competition, attracting and retaining top employees. By offering a well-designed benefits package, they can level the playing field and create an outstanding workplace.