What Employee Benefits Package Should My Business Offer?

In today’s competitive labor market, attracting and retaining top talent is more challenging than ever. While competitive salaries are essential, employee benefits often tip the scales. According to LIMRA’s 2024 Benefits and Employee Attitude Tracker study, more than six in 10 workers say a benefits package makes them more likely to stay with their employer. A 2024 survey by PeopleKeep found that 81% of employees consider benefits a crucial factor in accepting a job offer.

So, what should you include in your employee benefits package to meet the needs of your workforce? This article covers three of the most popular options and how to tailor your benefits to the size of your business.

1. Health, dental insurance and vision care

Health insurance helps employees cover medical expenses. Plans vary in services covered, deductibles, copayments and premiums. Dental insurance typically covers preventive care like cleanings and exams, and helps pay for common procedures such as fillings, and major treatments like crowns and bridges.

Vision insurance, often not included in standard health plans, helps cover preventive care and prescription eyewear, and sometimes procedures like LASIK.

Learn more about Ameritas dental and vision care offerings.

2. Retirement plans

Retirement plans are a highly valued benefit. The 2024 LIMRA study shows 31% of employees consider a retirement plan benefit one of the most important factors to consider for a new job. They’re a powerful retention tool, especially when companies match a percentage of employee contributions. This not only boosts employees’ savings but also provides tax advantages for both employers and employees.

Retirement plans are accessible even to small- and medium-sized businesses. The SECURE Act 2.0, legislation introduced in December 2022, increased tax credits for small businesses to help offset the costs of starting new retirement plans, making it more affordable for them to offer these benefits. It also allows small businesses to pool resources through Multiple Employer Plans or Pooled Employer Plans, reducing administrative costs.

Explore the many ways Ameritas tailors retirement plans to meet your specific business needs.

3. Life insurance

Life insurance coverage can provide financial assistance to an employee’s family if the employee dies unexpectedly. Offering life insurance demonstrates that a business cares about employees’ well-being—and the well-being of their families—beyond work performance. This can lead to increased employee morale, loyalty and a stronger sense of security, potentially reducing turnover.

Life insurance premiums paid by employers are often tax-deductible as a business expense. This can provide financial advantages for the company while offering valuable benefits to employees.

Tailoring employee benefits to your business size

No matter how many employees you have, your benefits package should provide a mix of cost-effective features that are valuable to your team without strapping your business’s resources or overloading your HR support staff.

Some of the possibilities include:

• Paid time off
• Holistic leave policies
• Employee Assistance Programs (EAPs)
• Mental health coverage
• Telemedicine/virtual care options
• Wellness programs
• Equity
• Parental leave
• Adoption support
• Childcare assistance
• Education assistance
• Flexible work hours
• Hybrid or remote work arrangements
• Pet insurance
• Mileage reimbursement or parking benefits

But how do you decide what’s right for you and your business?

Small businesses

Common benefits offered by small businesses include health insurance, retirement plans, paid time off and flexible work arrangements. Health insurance is often a top priority, making a comprehensive plan a valuable perk. Small businesses also must comply with regulations such as the Affordable Care Act (ACA) and the Family and Medical Leave Act (FMLA) to ensure employees have access to healthcare coverage and protected leave for family and medical reasons.

Retirement plans, such as a 401(k) or IRA, help employees save for their future and demonstrate your commitment to their long-term financial well-being. By pooling resources with other small businesses through Multiple Employer Plans or Pooled Employer Plans, small businesses can reduce administrative burdens and costs associated with offering retirement plans. Read our blog to learn more about the benefits of pooled employer plans for small businesses.

As a small business owner, you may think that offering comprehensive employee benefits is only feasible for larger corporations. With recent changes in financial legislation, small businesses have more opportunities than ever to create competitive benefits packages for their employees.

Medium-sized businesses

Medium-sized businesses, typically with 50 to 250 employees, have unique considerations for employee benefits. As these businesses often find themselves in a growth stage, attracting and retaining top talent becomes essential.

For businesses at this level, offering additional perks such as flexible work arrangements, wellness programs and professional development opportunities may interest the professionals you’re looking to attract. You may also want to consider customized benefits for your key employees, such as executive compensation strategies.

Large organizations

Designing benefits for large organizations comes with its own challenges and considerations. With a larger workforce, it’s crucial to create programs that cater to diverse needs while aligning with the company’s goals and resources.

One primary consideration is the scale of implementation. With a larger workforce, seamless administration and communication of benefits are essential. Leveraging technology solutions and dedicated human resources teams can effectively manage the complexities of benefits enrollment, eligibility and claims.

Comprehensive healthcare and retirement benefits are vital for large corporations to attract and retain top talent. Offering a range of healthcare options, including medical, dental and vision coverage, ensures employees have access to necessary care. Providing retirement benefits, disability income insurance and life insurance helps secure employees’ financial future.

Taking the next step

Ameritas is committed to helping you and your business thrive. From comprehensive business planning to employee benefits, we can help create a financial strategy for you, your employees and your business. Learn more about our many offerings.