Secret Benefits that Boost Retention For Small Businesses

Employees often stay with a company for its culture and growth opportunities, not just pay increases. For small business owners, this means that you can use a tailored benefits approach to boost retention and keep your team happy. These perks don't have to be expensive or complex to implement. They're thoughtful programs and policies that show employees you understand their needs. Let's explore the "secret" benefits that can help set your company apart.

Why Benefits Matter for Retention

Benefits are part of your employees' total compensation and your commitment to their well-being. When your team feels supported through benefits and culture, they're more likely to stay put. It's a good investment, since replacing an employee can cost 50%-200% of their annual salary(opens in a new tab). Offering retention-focused benefits can help you reduce these replacement costs.

Non-Obvious Benefits That Improve Retention

If you have a small business, you face unique challenges competing for talent against larger companies. Offering tailored fringe benefits can address your employees' needs and boost retention. There are three primary areas to consider: Flexible working arrangements, convenience benefits, and growth opportunities.

1) Flexibility and Work-Life Benefits

To make flexibility work for your company, start with your team's actual preferences. Survey your employees to understand what they need. Then set clear expectations about how the collaboration will happen. You should also make sure your managers know how to lead distributed teams effectively through regular one-on-one meetings and communication. Here are some ideas to consider:

• Compressed Workweeks: Your employees work four 10-hour days instead of the traditional five 8-hour days.

• Core Hours: Everyone's online during specific windows (like Tuesday through Thursday, 10 am to 3 pm). Outside those times, your employees can manage their own schedule.

• Hybrid Scheduling: Your employees need to be in the office on certain days, while you support remote work the rest of the time.

• Home Office Stipends: Support your team's remote work with stipends for ergonomic chairs or high-speed internet.

2) Perks and Convenience Benefits

Small perks can make a difference when they solve real problems. You can get creative with your staff appreciation ideas. They don't have to cost much, but they should make your team's life easier. Here are some examples:

• Commuter Benefits: Subsidize pre-tax transit passes or reimburse employees for parking.

• Wellness and Health Allowance: Let your employees choose what's right for them, whether that's a gym membership, a meditation app, a fitness class, or nutrition counseling.

• Pet Perks: Consider offering pet insurance and pet-friendly office environments.

• Food and Beverages: Provide free snacks and coffee, or subsidize lunch in the office.

3) Growth and Learning Benefits

Offering career development opportunities and a clear career path can do wonders for keeping your employees engaged and motivated to stay. Modern workplace perks and benefits often include learning stipends that employees can use based on what matters most to their career growth. Focus on targeted upskilling investments that don't break the bank. Here's what this can look like in practice:

• Paid Learning Time: You might dedicate paid work hours specifically for professional development.

• Reimbursement for Certifications: You can cover the costs for role-relevant certifications that help your employees improve their skills.

• Mentorship Programs: Help junior employees advance by pairing them up with senior employees.

• Career Paths: Document clear one-to-three-year advancement trajectories, so your employees can see their future with your company.

Benefits Employees Value Most Today

Today's workforce prioritizes a variety of employee benefits, including mental health support. Implement employee assistance programs (EAPs) that include access to therapy and mental health days to reduce stress and show your employees that their well-being matters.

Caregiver support is another secret benefit that boosts retention, especially for employees who are caring for aging parents while raising young kids. You can make their life easier by offering paid caregiver leave, parental leave, backup childcare resources, flexible schedules, and eldercare support.

Financial wellness benefits can also be a powerful tool. You can help your employees manage their cash flow with budgeting tools, workshops, access to certified financial counselors, matching contributions to their rainy-day funds, and setting them up with great retirement planning options.

You don't need to roll out your benefits all at once. Start small with digital tools and voluntary sessions. Promote these resources during onboarding and open enrollment.

Measuring the Impact of Benefits on Retention

Offering benefits that employees like is one thing, but you also want to show that they boost loyalty. To do that, you need to connect your benefit costs to the business outcomes through regular analysis. For example, if financial wellness program users show 15% lower turnover, you should calculate the saved replacement costs to demonstrate ROI. Here's an overview of the metrics to track, so you can see which benefits reduce turnover:

Partner with Justworks for Access to Better Benefits

Small businesses typically operate on tighter budgets, which can make it challenging to offer the benefits that help improve employee retention. By partnering with Justworks PEO, you gain access to enterprise-quality benefits packages typically reserved for larger organizations. Combined with compliance support and streamlined HR operations, our tools free you to focus on building the kind of workplace employees want to stay in. Get started with Justworks today.