Small businesses often cannot offer the same benefits as their larger counterparts. This can include health insurance, retirement plans, and other perks. As a result, employees are more likely to leave for better benefits elsewhere.
According to a National Bureau of Economic Research study, small businesses have a much higher turnover rate than larger businesses. The turnover rate is almost twice as high. This is mainly due to the lack of benefits offered by small businesses.
Employees are more likely to leave without benefits in search of better opportunities. This can lead to a high turnover rate for small businesses. Fortunately, there are plenty of ways to provide perks to small business employees without breaking the bank. Here are a few to consider for your efforts.
Flexible Work Arrangements
In today’s economy, it’s more important than ever for small businesses to offer flexible work arrangements to their employees. A Families and Work Institute study found that flex work options can improve employee productivity and reduce turnover rates.
Flexible work arrangements allow employees to balance their work responsibilities with their personal lives. This can be especially important for parents or caregivers. Offering flex work can help your business attract and retain top talent.
There are many different types of flexible work arrangements to consider. Some popular options include telecommuting, flex hours, and job sharing. If you’re unsure which choice is right for your business, consult an expert.
Of course, small business owners must also remember to comply with all federal, state, and local regulations. There is a limit to the flexibility that small businesses can offer, especially when it comes to payroll.
Unlimited Vacation and Sabbaticals
Most traditional businesses offer a certain number of vacation days per year. But offering unlimited vacation time is becoming increasingly popular among small business owners. This allows employees to take as much vacation as they need without worrying about running out of days. It also creates an environment where employees feel valued and appreciated for their hard work.
Sabbaticals are another option for small businesses looking to attract and retain top talent. A sabbatical is typically a long-term absence from work (usually between six months and two years) in which the employee still receives full or partial payment. This allows the employee to pursue personal interests or travel while still being connected to the company.
Small business owners can show their employees they are valued and trusted by offering unlimited vacation time and sabbaticals. This flexibility can help reduce turnover rates and attract top talent.
Another way small businesses can attract and retain talented employees is to offer education benefits. This could include tuition reimbursement or discounts at local colleges or universities. It could also be an in-house training program or a boot camp designed to teach specific skills related to the job. Offering education benefits shows your employees that you are investing in their future.
This benefit has increased employee satisfaction and loyalty, leading to lower turnover rates. Employees who feel valued and appreciated are more likely to stay with your business.
Dental Health Insurance
There will be times when employees need medical attention or dental care that their insurance doesn’t cover. Offering supplemental dental health insurance is a great way to show your employees that you value them. This benefit covers costs associated with routine check-ups and treatments, such as cavities and root canals.
This coverage will help ease any financial burden on the employee, leading to improved morale and job satisfaction. In turn, this can reduce turnover rates for your small business. However, your health insurance might be eating at your resources, so shop for the best deal. You can also benefit from partnering with a nearby dental clinic, providing employees with discounts and promos if they use the clinic’s services.
Many employees face long commutes to and from work. This can be exhausting and stressful, leading to lower job satisfaction and increased turnover rates. To help alleviate this issue, consider offering transportation services for your employees. This could include ride-sharing companies such as Uber or Lyft or a company-sponsored shuttle service.
Providing transportation services shows your employees that you are invested in their well-being. They will likely stay with your business in the long run. Of course, you can also provide transportation stipends for employees who don’t use the service, allowing them to choose their preferred mode of transportation.
These are just some ways small business owners can show their employees they are valued. Offering perks such as job sharing, unlimited vacation and sabbaticals, education benefits, dental health insurance, and transportation services can go a long way in keeping your staff happy and loyal. Do research to determine which perks make sense for your business and budget. You may be surprised at how much one or two small changes can impact employee satisfaction and loyalty.