With unemployment rates low and the job market tighter than ever, small businesses are feeling the squeeze when it comes to attracting and keeping great employees. Some of that difficulty has to do with employers not offering enough compensation—or the right kind of compensation. Some of it is because big companies like Amazon, Starbucks, or Walmart might be able to offer higher pay than the local market rate, making it tough for small businesses with a more limited budget to compete.
But there’s good news: You don’t have to go broke to offer perks that make your business stand out. By getting a little creative, you can build a competitive benefits package that helps you attract and retain top talent and keeps your team happy.
Candidates have their sights set on competitive employee benefits packages
Did you know that offering real, meaningful benefits is one of the most effective ways to attract and keep great employees? That’s right; while a bigger paycheck is certainly important for some, employees today are looking for more than just financial incentives. According to a recent Gallup poll, nearly two-thirds (64%) of employees consider a major boost in income or benefits when deciding whether to switch jobs. But what’s just as compelling is that 61% are also specifically seeking benefits like greater work-life balance and better overall well-being.
So while money is part of the equation, it’s by no means the only factor driving job changes. Employees are prioritizing things like flexible work, company culture, and professional development opportunities when they’re evaluating job options. They want to feel valued, be able to grow, and develop their skills. So by tailoring your benefits package to address these needs, small businesses can create an environment where employees feel supported and engaged, making them much less likely to jump ship for a higher paycheck elsewhere.
Competitive benefits can actually make or break an offer
For years, we’ve heard that compensation is king for job seekers, but it’s not just about salary anymore. In fact, a Glassdoor survey revealed that 60% of employees also weighed the proposed benefits package when deciding whether or not to accept an offer. So in a competitive job market, a well-rounded benefits package can be the deciding factor that sets your business apart. Even if you can’t offer the highest salary, providing benefits that align with what employees value—like work-life balance and professional development—can make your offer stand out. On the flip side, offering a weak or nonexistent benefits package could lead candidates to pass on an otherwise great opportunity. For many job seekers, benefits can be the dealbreaker, so it’s important to give them as much attention as you would the base salary.
Retain top talent by rethinking your current employee benefits package
When was the last time you took stock of your benefits offering? In a fast-changing—and competitive—job market, it’s easy for employee benefits packages to become outdated if they aren’t regularly reviewed and adjusted. To stay competitive and keep employees satisfied, employers should consistently evaluate their offerings to ensure they remain relevant and valuable.
One of the best ways to assess the effectiveness of your benefits package is to ask the people who use it—your employees. Surveying employees to gather feedback on their satisfaction level with their current benefits can provide some great insights. You can learn which benefits are being used, what employees find valuable, and what’s not hitting the mark. This feedback allows you to make informed decisions about adjustments, helping you keep your offerings fresh and aligned with what employees truly want.
It’s also helpful to include open-ended questions in your surveys to get more detailed input. For example, asking employees which benefits they use most frequently or what additional benefits they’d like to see can reveal opportunities for improvement. Maybe employees would appreciate more wellness options, flexible work arrangements, or educational benefits that weren’t previously on your radar.
Take a step back and add benefits that today’s job seekers really want
While surveys give you more information on what your current employees are getting from your benefits package, you also need to look outside your company for what prospective employees might be searching for. In today’s job market, employees are looking for benefits that go beyond the basics, like health insurance, retirement plans, or two weeks of vacation. To stand out and compete with larger national or multinational companies, rethink your approach to these benefits that frequently rank at the top of candidate wish lists:
- Flexible work arrangements: Many employees now expect the flexibility to work remotely, choose their hours, or have a hybrid work option. Offering flexible schedules or remote work can make a big impact without adding extra costs.
- Professional development: Employees want opportunities to grow in their careers. Offering access to workshops, courses, or covering the cost of certifications can show your team that you’re invested in their future. This not only benefits the employees but also boosts the overall skill set of your workforce.
- Wellness programs: A focus on mental and physical well-being is becoming more important. You don’t have to offer a full gym membership; smaller budget-friendly benefits like access to meditation apps, wellness challenges, or discounts at local fitness centers can be just as appreciated.
- Paid time off (PTO): More generous PTO policies, including offering mental health days or paid volunteer days, can be a big draw for employees. It shows that you value their well-being and work-life balance.
- Employee recognition: All of us want to feel valued, whether we’re at home or in the office. Implementing regular recognition programs—like employee of the month awards, bonuses for excellent performance, or public recognition for achievements—can make a big impact on morale and engagement without a huge cost.
Don’t be afraid to think outside the box for creative and affordable employee benefits
Still wish you could be doing more to set your company apart? Because they’re more agile and can institute changes faster than big companies, small businesses have the opportunity to get creative with their benefits package—adding some unusual and cost-effective benefits that will make a difference to your team.
Your current employees might have some great ideas for new benefits, or your particular industry might lend itself to a benefit that might not work elsewhere. If you’re looking for a few starter ideas, you might want to explore:
- Partnering with local businesses: Work out partnerships with local gyms, coffee shops, or wellness providers to offer discounts to your employees. These perks can add value without increasing your operating costs.
- Early release or summer Fridays: Build a half-day into your schedule for the day before holiday weekends to allow employees to start their time off a little earlier. Or introduce summer Fridays, where the office closes on Friday all summer long.
- Offering flexible stipends: Instead of offering rigid benefits, give employees a monthly stipend they can use for their own priorities—whether that’s gym memberships, childcare, or commuting costs. This puts the choice in their hands and shows that you trust them to know what benefits suit them best.
- “Late start great start” incentives: Allow employees to come in an hour late on designated days if they can prove they participated in a workout during that time frame.
There are many more ideas out there, and by getting creative with your offerings, small businesses can build a competitive benefits package that not only attracts talent but keeps them engaged and loyal for the long term. These strategies are practical and implementable, and help you stay in the race with larger companies, even on a smaller budget.
Need help creating an affordable employee benefits package?
Revamping your benefits package to meet the evolving needs of employees can give your business a competitive edge in today’s tight job market. By offering flexible, creative, and meaningful perks, you can retain top talent and keep them engaged without breaking the bank.
If you’re looking for more ways to make your attraction and retention strategy even stronger, partnering with a leading-edge staffing agency like Distinctive Talent Partners can help. We specialize in helping businesses understand the full benefits of working with a staffing partner to meet hiring goals. With our support, you can build a team that drives your business toward long-term success.