A lot of people think that a higher salary is the most desirable feature of a new job. However, studies show that this isn’t always the case. According to a survey by Glassdoor, over four out of five employees would rather have a new job or more benefits than a raise.
An employee benefit is a type of compensation that is paid to employees over and above their regular salaries. It can include health insurance, paid time off, and retirement benefits. In this article, we’ll talk about some of the common types of employee benefits that small businesses can offer.
The first thing you’ll want to think about is the type of employee benefits you’d like to offer in your small business. Some of the most common and desirable employee benefits include health insurance, paid time off, sign-on bonuses, flexible working options, and a whole lot more. These types of benefits can make or break the chances of an employee wanting to work for you.
Once you’ve decided what kind of benefits you’re looking to offer, it’s time to figure out how you want to lay them out. In most cases, employers can structure employee benefits in two different ways; organizational-oriented and consumer-oriented.
An organizational-oriented benefit is a type of compensation that’s designed to be both employer-owned and employee-selected. This means that you, the business owner, will choose which benefits you’re willing to offer and then employees get to decide whether or not they would like to take advantage of them. These types of benefits typically include options such as a health insurance policy or a 401(k).
A consumer-oriented benefit is different from an organizational-oriented benefit in that it gives employees more freedom when it comes to choosing what they use. They typically involve employers offering their employees a set dollar amount to spend on various benefits, and then employees get to customize and have more freedom on what they get, so long as it doesn’t exceed the budget. These types of benefits typically include things such as health savings accounts and health reimbursement arrangements.
While organizational-oriented benefits have been the most prominent form of benefits in most businesses, we’re seeing more and more elect to do consumer-oriented benefits in order to attract more employees and keep their current employees happy.