Employee Benefits Every Startup Should Offer

Written by: AEIS

Startup companies often have to be strategic about the benefits they offer. As a new company, you can choose to make a strong statement early on by flashing an impressive benefits package to attract quality talent.

There's no one-size-fits-all solution to employee benefits for startups, so you should put a lot of thought into what options work best for your business and employees, so you can keep enrollment high and your employees happy.

Many top employees tend to be nervous about leaving a "more secure" job to pursue a startup company. Offering non-traditional benefits and perks like remote working stipends, gym memberships, and stock options may be more affordable and simpler, but trying to pull the brightest stars from top companies will require a robust traditional benefits package. These employees are accustomed to things like premium health care plans, life insurance, dental insurance, vision insurance, and health savings account options.

Benefits can be seen as just another cost of running a business if you want to succeed. This doesn't mean you should overspend and put yourself in a bad position. Starting with these options below will leave you in a great position right out the gate, and we'll tell you more about what you need to know to get there.

Types of Employee Benefits for Startups to Offer

Technically, it is not required to offer most of these benefits, depending on where you are and how many employees you have. But you'll likely see a lot more success with employee retention if you focus on securing the following benefits.

Health Insurance

There won't be many people wishing to grow with your company without health insurance. Regardless of any other benefits you decide to offer, health care should be the top priority.

Insurance companies offer health insurance at different tiered levels, from bronze to platinum. You can always work your way up from smaller tier plans or small contributions if needed. As an additional perk down the line, you can choose to increase your plan level. Just be careful not to start with too high of a tier, otherwise, you might find yourself decreasing the plan and participating in awkward conversations with your employees.

Plan accordingly from the beginning. If you're overwhelmed and feeling uncertain where to start, ask your insurance broker! They will help you establish a baseline. Consider how fast you aim to grow and ask yourself if you are willing to pay for premium health insurance plans when your company grows from ten employees to fifty.

Dental and Vision Insurance

Some health insurance plans may cover dental and vision insurance, but it isn't very common. Both of these coverages are fairly inexpensive and will still provide a lot of value. You can look at these coverages as easy victories since they are important to employees, but don't cost you too much.

Once you have over twenty employees, your insurance brokers can work with you to get better group rates, or explore self-funded plans. You can also offer a health savings account (HSA) as an alternative for employees to use for eye exams, prescriptions, teeth cleanings, root canals, and more.

Life and Disability Insurance

Disability and life insurance are both hugely beneficial, but often overlooked coverages. Companies that offer disability insurance can ensure that their employees continue to receive a portion of their income, instead of just a get well card. Employees do not necessarily think about whether or not their paycheck is insured until something bad happens. With life and disability insurance,  an employee with a large or growing family will feel much more secure knowing they can cover their expenses should something happen to them.

Some states, like California, have state administered short-term disability insurance and some states, like New York, mandate employers to get disability and paid family leave policies for their employees living in the respective state, so be sure to check with your insurance broker about the various states you have employees in.

Other Non-Traditional Benefits

While there are many other traditional benefits you can add to the ones above, sometimes remaining competitive means thinking outside the box. Depending on your funding and what you can afford, it's understandable you might be looking for small ways to stand out. Here are a few more non-traditional benefits you can incorporate into your benefits packages.

Chances for professional development: This should appeal to the right kind of employee. Knowing their company is investing in them and giving them a chance to learn new skills and flourish professionally.

Generous amount of paid time off: Work-life balance is valuable to anyone, but you also want to make your employees feel welcome to take time off. Offering an above average amount of PTO days is an easy way for a startup to stand out.

Try offering 25 days instead of unlimited to show employees you're serious about them taking time away from work.

Bonuses or reimbursements: Bloated payroll expenses can be overwhelming for startups. While salaries should still attempt to stay on par, you can also incentivize employees with other cash offerings. Things like tuition reimbursement, quarterly bonuses, and retirement plan contributions can all serve as alternatives, but not a substitution, for a higher salary.

Extra Benefits You Can Offer

There are emerging benefits to offer employees that can enhance employee morale while reducing indirect costs. These include:

• Remote Work or Flexible Hours
• Bonuses
• Company Retreats
• Mental Health Support
• Travel Reimbursement
• Childcare Assistance
• Student Loan Assistance
• Wellness Subscriptions or other Discounts
• Recognition and Rewards Programs

Get Help From a Trusted Insurance Broker

If you feel your benefits package isn't meeting the demands of job seekers, you can always consult your employees and insurance broker. Ask for feedback from your employees about how you can adapt your benefits offerings to match their current needs. Then talk with your insurance broker to discuss how to best adjust your offerings. Whether your company is growing or just trying to stay current and competitive, you will want your benefits plans to change with you.

Get in touch with AEIS Advisors to set up a consultation today! We know a well-communicated and organized benefits plan will help both attract and retain top talent. We can take a look at your current plan offerings, or start from scratch. We will shop for plans for you and work with you the whole way as you need to adjust your benefits when you grow. We invite you to partner with us in your journey to establish and maintain a great benefits program for your employees!