One of The Biggest Mistakes Small Businesses Make
Being a small business owner places one in a difficult position. You must keep yourself within profitable margins to continue operating, and yet somehow find ways to be competitive, hire good talent, and more. There are many mistakes small businesses owners make every day which contribute to the large percentage of businesses that fail every year. Today, we’ll talk about what we think one of the biggest mistakes small businesses make: not focusing on employee benefits.
Throughout the years, employees have come to expect that they will receive full benefits for the organizations that they choose to work with. Seasoned and dedicated workers in all industries work tirelessly to accurately represent these businesses. Your employees are the extension of your company and while having a good salary to match the level of work and expertise is enticing, so too is a robust benefits package. Employee benefits such as PTO, access to a 401k, vacation time, are some of the most popular benefits for a reason—they can drastically improve one’s quality of life far more than just salary increases across the board.
As a small business owner, it goes without saying that your bandwidth and access to resources won’t go as far as some of these C-level executives within these larger corporations. With that in mind, there are still effective methods in acquiring comprehensive benefits packages that can serve your employees and their families. When determining what’s in the best interest of your valued employees, it’s important to be educated on the benefit laws and the plans that accompany them. This is where a qualified financial planner can you help you.
Benefits That Are Legally Required
When broaching topics for this blog, we often discuss some of the core services you can take advantage of to generate and preserve wealth for your family. Salary isn’t everything, benefits are also important financial assets. Your financial assets will serve as a nest egg for when you need them the most.
Typically speaking, the five primary benefits that employers are legally required to offer are Medicare & social security, unemployment benefits, workers’ compensation, health insurance, and the use of the Family Medical Leave Act (FMLA). As a small business owner who is considering the implementation of employee benefits in CT, you have to devise strategies that will align your employees for success within their professional careers and personal lives.
What’s interesting is that only half of America’s smallest businesses offer health coverage to their workers. Many of these owners claim that the hikes in pricing have made it unaffordable to get a sufficient plan. This study from The Kaiser Family Foundation cited that 44% of small businesses don’t offer benefits because of the price, while another 17% said their company was too small to offer coverage. Conversely, the same study shows that 50% of businesses with fewer than 50 employees will provide health care benefits.
The summary of the study emphasizes the discrepancies with affordability but also mentions that a variety of employers intentionally won’t offer benefits for employees who were on their spouse’s plan or perhaps they were only working on a part time or temporary basis. Some employers even chose to give their employees more money to buy coverage within the individual market.
While these are some valid concerns to raise, it shouldn’t dissuade small business owners from testing the waters. You’ll come to realize that many of your workers will settle for smaller salaries if it means they’re getting a hefty benefits package that protects their livelihood for the long term.
The choice to offer your employees certain benefits will go a long way in solidifying the company culture, morale, and reputation in the community.
We Help Small Businesses Understand Employee Benefits
So the question stands, should small businesses focus on employee benefits? The answer is a resounding yes! Quality employee benefits are a must as your high-performing employees value the fundamental qualities of security and longevity as it pertains to their financial wellness. Offering benefits indicates that you believe in the mission and success of your company. By speaking with our qualified financial planner in Fairfield CT, you can have a better understanding of what is necessary to utilize for the sake of your employee’s success and level of comfort.
Contact us to set up a call today to discuss this further!