A good benefits package is not only important for business owners and their families, but it’s also a way to recruit and retain the best employees. Some startups are afraid that they can’t afford to offer benefits, but employees are a big revenue-producing asset that a company can’t afford to neglect!
There are certain group benefits that are big satisfiers to good employees, which will also have a big impact to success. From the start, a business needs a good group medical plan.
For very small businesses, medical insurance may be enough, but for any startups with plans for growth, a group dental plan is very important to most employees. Again, it should be selected so that there’s a good selection of local in-network providers.
Many small businesses neglect to have a group vision plan, but this can be one of the most cost-effective benefits for a start-up company. Not only are the plans popular, but there are inexpensive options.
As a startup grows, the benefits plan needs to grow with the company. There are some creative ways that small businesses can use Section 105 Health Reimbursement Arrangements (HRA) or high-deductible-health-plans that are compatible with Health Savings Accounts. Employers also need to have a plan for managing employer vs. employee contributions towards the plan costs, especially considering that the plan costs have trended higher than inflation.
Startup employers need to consider the required plan administration, and insure that there’s trained staff able to handle the Human Resource activities that will grow as the firm grows.
Additional contributory and/or voluntary benefits, such as group life and disability insurance, a retirement plan and perhaps a Section 125 “cafeteria” plan can also be considered, at each appropriate stage of the startup business lifecycle.
The cost of benefits can be significant and will vary over time based on the size and type of business. Just as prevailing salaries/wages are tracked by industry/geography, similarly a competitive benefits package will be different by region/industry, and also will evolve based on the labor economy and demand for talent.
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- Why Should NJ Employers Offer Employee Benefits?
- When Should A NJ Startup Business Offer Benefits?
- What Are The Basics Of NJ Employee Benefits?
- How Should Employees Be Involved In Benefits Plan Selections?
- How Are Employee Benefits Paid For?
- How Can Employee Benefit Plans Be Used Most Effectively?
- What Types Of Rules Must Be Followed?
- What Is The Process At Policy Renewal/Plan Anniversary?
- How Can A NJ Benefits Specialist Help?