Because of the talent shortage and the increased competition for top job candidates, benefit offerings play a critical role in attracting job seekers
while also retaining current employees.
And yet, many small and medium-sized businesses (SMBs) struggle with their employee benefit packages, often due to the costs associated with improving current offerings and adding new perks.
However, failing to address this business challenge can lead to several negative outcomes for smaller employers. What can SMBs do who find themselves in this employee benefit situation?
One solution is to explore working with a Professional Employer Organization
(PEO) to gain access to enhanced, modern employee benefit plans. Here are some of the ways a PEO can improve the benefit offerings for smaller employers.
1) Improved Health Insurance at Competitive (Often Lower) Rates
Businesses big and small face challenges with health insurance benefits. However, larger employers are often better suited to handle rising healthcare costs, while smaller employers struggle with surging rates.
With many insurance providers limiting their small group offerings or leaving the market all together, SMB owners face a significant challenge – and this is where a PEO proves to be valuable.
Through a PEO, small employers gain access to the same quality health insurance as much larger organizations, and at rates much more reasonable than those usually available to a small group.
Additionally, most PEOs partner with industry-leading insurance providers, and can tailor healthcare benefits to a client’s workforce, industry, and geographic location.
This helps small and medium-sized business owners offer competitive health insurance to their current and future employees while often saving a considerable amount of money.
2) Access to Voluntary Benefits
One of the biggest trends with employee benefits has been the rise in the importance of voluntary benefits. While they were once considered a “nice to have” by employers and employees, a recent survey found that voluntary benefits are now must haves
Additionally, this same survey found that 95% of employers view voluntary benefits as important to their employee value proposition
However, voluntary benefits can be costly for small employers to add to their own plans. Also, new trends emerge each year for voluntary perks, meaning small employers would have to continuously monitor and add-to their plan.
Once again, a PEO can provide a solution to an SMB’s voluntary benefit problems. Not only would a client gain access to a wide-variety of voluntary offerings, but PEOs routinely monitor new and emerging perks
that can be added to a plan.
Some voluntary benefits that a PEO can provide for a small business client include:
- Telehealth programs
- Financial and legal advisement programs
- Identity theft protection
- Pet insurance
- Home and auto insurance
- Accident and illness plans
- Supplemental life insurance
3) Offer Personalized Benefits to Employees
One of the biggest trends with employee benefits in recent years mirrors a trend that has been occurring in almost all other areas – personalization
Today’s employees have much different expectations than in years past, and that includes how they view benefits. They want, and expect, to have some level of personalization with their benefits in order to maximize the impact they have on themselves and their families.
This can be a significant challenge for small and medium-sized employers, who are often left with a one-size-fits-all benefit plan. But a PEO provides their clients with a complete personalized HR solution, which includes benefits.
For a business owner, this means getting healthcare and other benefit offerings that are designed to fit their company and industry.
And with a wide variety of voluntary benefits and multiple healthcare plans to choose from, employees have options that can match their individual needs.
Personalized benefits appear to only be growing in importance
, and SMB’s can gain a significant advantage by being able to offer these to current and potential employees.
4) Provide Complimentary Benefits to Employees
While healthcare and voluntary benefits are often the focal points of any package, other kinds of employee benefits and perks can help with recruiting, improve the employee experience, and boost retention. Once such example are complimentary benefits
Often associated with large employers, these benefits are included in plans usually free of charge to employees and can help them with a wide-variety of things.
Most PEOs provide clients and their employees with complimentary benefits as part of their overall benefit plan. But what exactly are complimentary benefits? Here are a few examples:
- Discounts on concerts, sporting events, movie tickets, theme parks, Broadway and other theater shows, shopping, and more
- Access to banking services such as savings, checking, loans, mortgages, and more
- Employee Assistance Programs (EAPs) that provide advice, support, and resources 24/7 on various life matters and issues
Complimentary benefits are a great additional perk to be able to include in benefit packages that employees will be happy to have.
A PEO Can Help Smaller Employers Overcome Their Employee Benefit Challenges
Small and medium-sized employers who are struggling to improve and enhance their benefit packages to remain competitive in today’s market stand to gain from exploring a PEO solution.
But that’s not all a PEO can help business owners overcome, there are a wide-variety of HR challenges that a PEO can solve.
Perhaps working with a PEO could be the perfect answer to your employee benefits and HR needs!
Want to learn more about PEOs? Check out our eBook, How Well Do You Know PEO? This eBook provides an overview of the PEO industry as well as helpful information for brokers and employers!