How Small Businesses Are Offering Big Company Benefits

For small businesses, it’s not feasible to offer the high salaries that can compete with the larger and established organizations. 

One area where small businesses are able to edge out the large company competition is their personal commitment and caring for their staff.  

They can display this by offering top-notch benefits. Visit – Small Businesses, Big Advantages – for synopsis on how small businesses compare to larger organizations.

The SHRM – Society for Human Resource Management conducted a survey showing that roughly 60 percent of workers claim that benefits boosted their job satisfaction.

Small businesses strive for the basics including group health, vision and dental, but understand that in order to genuinely appeal to top talent, they must provide a fringe benefits package to include mandatory provisions like workers’ comp as well as options, including tuition reimbursement or flexible spending accounts. Staff will feel valued, and your company will lead with a competitive edge.

Fortunately, a PEO – Professional Employer Organization, please visit this website, provides the small business leader with access to benefits often reserved for larger organizations and at lower price points.

Understanding Mandatory Employee Benefits

Small businesses in the US are mandated by law to provide workers with certain benefits. In failing to do so, leaders can find themselves facing financial and legal repercussions that can include business closure. 

Some required benefits vary from one state to the next, however, others are federally mandated, including the following.

Unemployment insurance

This is a government program that provides qualified workers with financial support as they search for viable employment. Those who are eligible for this benefit must have lost their current position through no fault of their own, whether a layoff or company downsizing.

The payment amount received is based on previous earnings, and the duration of payout varies from one state to the next.

FMLA – Family and Medical Leave Act

FMLA enables qualified workers of covered employers, such as public and private-sector businesses with 50+ staff, to take up to 12 weeks of unpaid, albeit job-protected leave for reasons such as caregiving or illness. Local and state laws may apply when using this benefit.

Health coverage options

All employers managing 50+ workers must provide health benefits for full-time staff according to the ACA – Affordable Care Act. This benefit must meet certain standards for quality and affordability.

Workers’ Comp Insurance

Workers’ Compensation is a state-mandated benefit created to assist injured workers with medical expenses, death benefits, or lost wages. Eligibility is based on the illness or injury being found to be job-related or occurring in the workplace

This is not an exhaustive list. Employers must also consider state-mandated benefits. Some states, include California, New Jersey, Hawaii, Puerto Rico, New York, and Rhode Island, must provide workers with long- or short-term disability benefits.

With a PEO specialized provider, you can readily manage vital compliance responsibilities. 

For instance, if a worker sustains an injury in the workplace, the PEO helps protect the employer from potential litigation and ensures the worker’s medical and lost wages are covered under workers’ comp benefits for a smooth and hassle-free process.

Optional employee benefits

For smaller businesses to compete with larger organizations, they need to go beyond statutory benefits. When you aim to stand out, it’s important to creete an enticing benefits package that includes volunteer benefits, such as retirement plans, PTO – paid time off, and on.

PTO – generous paid time off

PTO can include personal days, paid vacation time, and sick leave. These benefits enable workers to take time from the job to rest, attend appointments, recuperate, or provide loved ones with care. PTO is not a legal mandate in the US; however, some states do require sick days.

Many small business owners offer staff PTO, granting workers the flexibility to take days off when it’s necessary with manager approval. 

This encourages a healthy work-life balance and aims to reduce the risks of burnout. When deciding the amount of PTO to offer, you want to consider the workers’ well-being along with the company’s needs. This means accounting for the employee’s workload and family configuration.

Life insurance

Offering life insurance gives workers peace of mind and affirms the employer’s commitment to the employee’s loved one’s financial security and personal wellbeing. Life insurance guarantees benefits for a worker’s beneficiaries in the unfortunate instance of their passing, which can include wage replacement.

Varied types of life insurance are available for employers to choose for the business and the workers. Term life insurance coverage is for a predetermined time, whereas whole and universal coverage provides for lifelong and potential investment benefits.

Opt For A PEO Service

Small business owners often have more responsibilities than time in the day, handling daily operations, hiring and managing workers, and strategically, planning for growth. Administrative HR demands take time away from core tasks; therefore, more small business leaders are reaching out to PEO services.

PEO – Professional Employer Organizations are strategic partners that essentially co-employ the workforce, specializing in administrative HR duties. These providers take on duties, including enrolling workers in benefit plans. This frees up leadership’s time and resources to focus on valuable growth strategies.

PEOs ensure workers in small businesses have top-notch benefits at lower price points considering its purchasing and negotiating power. This means your small business can not only attract but retain the best talent in your industry. Go here to learn how small businesses can offer big benefits to attract top candidates.