Small Business Affordable Care Act Advice
As a result of the implementation of the Affordable Care Act and the steady increase of overall health care cost, many small businesses will see an increase in their premiums and also have a lot to contemplate when it comes to employee benefits. Moreover, employers also know that full-bodied benefits packages are a huge draw for talented workers and a key facet of employee retention. In order to avoid larger companies to take away their best people, small business owners have to come up with more affordable ways to take care of their employees – and some are not all about health care.
Variation of Benefit Packages for each Generation
One idea focuses on customization, in which employees need to vary (in what benefits to include) by generation. A one-size fits all benefits packages do not make sense especially for small employers. One should consider the multi-generational aspect of most workplaces where each generation demand different perks within a benefits package. For example, individuals, from the baby boomers generation (born 1945-1960), want the job security that will allow them to live comfortably both before and after retirement. They also want retirement plans, time off for vacations, and long-term health insurances. For the Generation Y (born 1981-1995), they are the first generation that wants freedom and flexibility. Most will not stay at their current jobs for the long haul, so they want benefits they can enjoy in the moment, such as flexible attire and hours or tuition reimbursement.
Besides taking to account the varying desires, the best way to draw the most talented employees from each generation is to create a flexible, individualized packages of benefits that will meet their needs and still be inexpensive for the small business. A customized and efficient benefits package usually include the following areas:
1) Life benefits (time off, child and elder care)
2) Health benefits (insurance, wellness programs, gym memberships)
3) Work benefits (career visibility, professional memberships)
4) Financial benefits (savings accounts, retirement contributions)
Don’t be Afraid to Think Small
For one, not all benefits need to be large and permanent. The occasional pizza party, gift card, or even fewer hours on Friday can go a long way towards business loyalty and appreciation for employees. Furthermore, small businesses should also give options, in which one should allow their employees to choose their benefits package if possible. Also, a business should not solely think generation-ally since employees are more than just an age. When building your benefits package, one should think about every aspect of your employees’ lives. By taking these various factors into consideration, you can build a nontraditional and adaptable benefits package that will not only retain and support your best workers but it will also help save you money.