3 Benefits Strategies for Small Businesses
Many small business owners assume they cannot afford to offer benefits to their employees, often due to how expensive traditional health insurance is. With the right strategy, any business can offer benefits.
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Many small business owners assume they cannot afford to offer benefits to their employees, often due to how expensive traditional health insurance is, especially for smaller groups that cannot benefit from the same economies of scale that larger companies can. But there are ways to offer benefits that will keep your employees happy and not be a financial burden on your business.
Benefits strategy #1: Start small
If you’re running a small business, you shouldn’t expect to jump into a benefits program that doesn’t fit you. While big moves like matching 401k and health savings account contributions might not be a reality now, you can still offer your employees valuable benefits that will keep them happy and help them stick around longer.
Here are some ways you can start small with benefits for your employees:
Wellness Programs
According to the Chapman Institute, workplace wellness programs can reduce sick leave by 25%. Even simple initiatives can make a big difference in productivity and produce a return on investment.
- Partner with a local gym to provide membership discounts for your employees.
- Organize monthly or quarterly wellness challenges with small incentives or rewards.
Flexible Work Arrangements
Now more than ever, workers are placing high value on flexibility in their work schedules and commuting expectations. A Stanford study shows companies that accommodate remote work see 50% less turnover and a 17% increase in productivity—nearly a full day per week.
- If possible, offer flexible working hours to accommodate personal schedules.
- Allow employees to work from home on certain days.
Work-Life Balance
When employees can find a balance between life and work that feels enjoyable and sustainable according to this breakdown of work-life statistics, they are 21% more productive and 33% more likely to stay with the company.
These types of initiatives can offer hard-to-trace savings in the form of retaining your best employees and not having to retrain new employees.
- Offer a few extra paid days off per year for vacation or personal time.
- Offer the option to work longer hours on fewer days, allowing employees to enjoy an extra day off each week.
Benefits strategy #2: Take advantage of nontraditional benefits
There is no shortage of lesser known but high-quality health benefits and programs out there, and many are turning to these nontraditional options as an affordable alternative to health insurance. With these services, your employees still have access to the quality of healthcare they would expect, while not becoming a financial burden of traditional benefits.
HealthShare Membership
A HealthShare is a community of individuals that all contribute to one another’s medical expenses.
- Membership in a HealthShare will offer your employees a safeguard against large medical expenses at a much lower monthly cost to them.
- You can learn more about HealthShares here.
Direct Primary Care
Direct Primary Care (DPC) memberships provide unlimited access to primary care services for a flat monthly fee. DPC’s can reduce overall healthcare costs by up to 20%.
- Offer your employees a direct primary care membership at a local clinic to provide access to routine and preventive services like checkups, screenings, and vaccinations.
- Partner with a local clinic or healthcare provider to offer preventive services at discounted rates.
Virtual Care
Virtual care can provide cost-effective and convenient access to healthcare professionals. Many data points, compiled by the Olson Group, suggest that employees with access to virtual care enjoy more timely access to professionals and thus see lower hospital admissions, lower depression, anxiety, and stress.
- Provide virtual care memberships to your employees, allowing them to connect with healthcare providers virtually at a lower cost.
- You might consider including mental health support through a virtual care program for online counseling or therapy sessions.
Benefits strategy #3: Use a third-party administrator
While the benefits above can add a lot of value for your employees at a lower cost than a traditional benefits package, the process of researching options and making necessary arrangements and enrollments can be time consuming for small business owners that need to focus on their operation. To alleviate this burden, consider using a third-party administrator (TPA) as part of your benefits strategy.
Administration & Support
TPA’s handle the complexity and burden of benefits administration, from enrollment to claims to support.
Expert Guidance
TPA’s are experts in the field of employee benefits. They stay up to date on trends, regulations, and best practices, so they are able to provide informed guidance.
Better Rates
TPA’s have the leverage to negotiate better rates with benefit providers due to their large client base, leading to increased savings for your business.
Compliance
TPA’s are equipped to handle compliance issues and reduce the risk of government penalties.
How Planstin can help with your benefits strategy
At Planstin, we blend the strategies above into unique benefits solutions tailored for businesses of all sizes. We ease the administrative burden of an employee benefits program while designing packages that use nontraditional benefit options to provide access to quality healthcare at more affordable rates. We also show businesses how to use level funding and stop-loss protection as another layer of savings.
Consider a New Benefits Strategy with Planstin:
- We’ll design benefits packages to fit the unique shape of your business and employees, using nontraditional options to provide quality healthcare at lower costs.
- We’ll handle the management of your benefits program, from enrollment to claims, while making sure you stay compliant with government regulations.
- We’ll show you how to use a level-funding strategy combined with stop-loss protection so you and your employees will save 40-60% over packages based in traditional health insurance.
No matter the size of your company, some level of employee benefits is achievable and can be perceived as a value to your employees. So, if you want to start small with manageable options like a wellness program and flexible work arrangements, or you would rather look into more robust nontraditional benefits like HealthShares or direct primary care, each approach offers advantages that will feel like a real value to your best employees, keeping them happy and retaining them for longer.
Start Small
Employee benefits can be as simple as discounted gym membership and extra days off work.
Nontraditional Benefits
Provide your employees with health benefits that are not insurance but feel like it for a fraction of the cost.
Third-Party Administration
If you prefer a more well-rounded solution, Planstin can help design a benefits package that blends the lower-cost alternatives to insurance to provide your employees with access to healthcare for 40-60% less than traditional insurance.
Even the smallest step along any of these paths will be felt by your employees, and you’ll be on your way to a more productive and satisfied team. Consider your options, your business’s needs, and take the route that aligns best with your goals.
Even the smallest step along any of these paths will be felt by your employees, and you’ll be on your way to a more productive and satisfied team. Consider your options, your business’s needs, and take the route that aligns best with your goals.
If you’re ready to take the next step or would like some guidance on where to start, Planstin is here to help. Contact us to learn more about how you can make benefits a reality for your business.
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