The shift to remote work has come with advantages for employers — including the ability to hire talent from anywhere — but it has also heightened the competition for talent. As a result, small businesses must find strategies to set themselves apart from competitors to attract and retain the talent they need.
Employee benefits can help. Competitive benefits remain the top driver of retention, even beating out a strong sense of workplace culture, and can serve as a key differentiator for top talent. Offering a range of benefits also boosts outcomes across the organization, increasing employee productivity and engagement to support business growth.
However, many Canadian small businesses find themselves lagging behind their larger competitors when it comes to benefits: just 65% of small businesses say their benefits plans are excellent or very good, compared to 79% for medium- and large-size businesses.
Here, we’ll discuss how small businesses can remain ahead of benefits trends, how to offer competitive benefits packages on a budget, and how to think bigger about benefits to create a workplace culture that top talent expects.
Understand the expectations of today’s talent
Traditionally, baseline benefits have included vision and dental, retirement savings or contribution plans and paid or unpaid time off — but employees’ expectations have been raised.
Increasingly, employees seek more well-rounded support for their well-being and want benefits that cater to the needs of their entire family. Demand for emerging benefits, including fertility benefits and pet insurance, are on the rise, creating opportunities for employers to stand out by offering these more innovative benefits.
Consider expanding your benefits offerings to include more emerging benefits, so staff can find coverage that meets their needs. If budget is a concern, look to voluntary benefits — ones that employees can access by paying out-of-pocket at a discounted group rate — to expand your offerings with little to no cost or administrative burden to you.
Offer flexibility whenever possible
In addition to demanding a broader range of benefits, employees crave more options, including the ability to select the benefits that meet their needs. And what many small businesses may lack in budget, they make up for in agility and flexibility.
While large organizations may need to cater their offerings to hundreds or thousands of employees at a time, small businesses have the opportunity to be nimble, and adjust their offerings as-needed to meet the unique needs of their staff.
Consider soliciting feedback on your employee benefits and programs to learn what your organization already does well — and where employees crave more benefits support. You’ll gain a deeper understanding of what your workforce is looking for in terms of benefits, identify emerging benefits likely to have a significant positive impact on your staff, and build trust by demonstrating your commitment to strengthening your benefits offerings.
Create a welcoming workplace culture
Workplace benefits don’t just enhance employees’ personal lives, they can also directly strengthen the employee experience.
Look for ways to use benefits to help employees bring their best performance to work — for example, by offering childcare or caretaker benefits, and allowances for employees to create a productive home office. Support your staff with benefits that help employees manage their work-life balance, such as vacation funds, flexible leave policies and the ability to set their own hours.
Consider, too, how benefits can strengthen the on-site employee experience. Breakfast and lunch programs, on-site exercise classes or “bring your dog to work” policies can supplement traditional benefits to attract workers to the office.
Leverage benefits during the recruitment process
Competitive benefits help you stand out when competing for talent — but only if you effectively communicate your benefits and programs during the hiring process. Highlight your benefits offerings in job postings, placing a spotlight on staples like health and retirement benefits as well as emerging offerings, on-site programs and benefits for remote and hybrid employees.
Discuss benefits during the interview process, inviting candidates to share which benefits matter most to them — and communicating your commitment to offering innovative benefits tailored to employees’ needs.
Finally, help new and existing employees make the most of their benefits with tailored communications that help staff understand which benefits are available to them, what each benefit covers, and the real-world impact benefits can have on their well-being.
This article is intended for general informational purposes only and does not constitute legal advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.