Benefits for Lean Teams: Focusing on What Really Matters

Small businesses today tend to be lean, cost conscious, and resource constrained. This is especially true in startup environments, where small businesses may be looking to manage costs by keeping overhead low or companies hyper-focused on efficiency and growth.

Yet, these companies still need to do all they can to attract top talent, keep them happy and engaged, and prevent unnecessary turnover. Salary is a big part of this, but in many cases, small businesses may not be able to pay employees as much as the competition. 

The good news is that this may align with what prospective employees may be looking for. According to the a Harvard Business Review article, The Most Desirable Employee Benefits, 80% of employees reported that they would choose additional benefits – such as better health, dental, and vision insurance, flexible hours, more vacation time, work-at-home options, and even unlimited vacation time – over a pay raise. 

This is why benefits for small businesses are such an important part of employees’ total compensation packages. In many cases, offering the right benefits can make all the difference in hiring the right employee.

Key benefits for lean teams

What benefits should you offer? Admittedly, it is hard to know which ones to pick, especially knowing that you can’t provide them all. To help, the following are some of the most popular small business employee benefits for small businesses.

1. Flexible work options

Flexible work options, such as hybrid and fully remote arrangements and flexible schedules, can give small businesses a low-cost way to enhance employee satisfaction and overall productivity. Research has shown that giving employees a way to balance their work-life responsibilities can lead to a wide range of positive outcomes, including:

• Reduced stress: A study published in the International Journal of Environmental Research and Public Health found that flexible working arrangements reduced the risk of occupational stress in employees with high job autonomy. 

• Increased job satisfaction: Research highlighted in FlexJobs indicates that participants with flexible work options reported higher levels of job satisfaction and reduced psychological stress and burnout.

• Lower turnover rates: The FlexJob research also shows that providing flexibility enables employees to achieve better work-life balance, leading to increased job satisfaction and reduced turnover intentions.

These findings highlight the significant role that flexible work arrangements play in fostering a healthier, more engaged, and more resilient workforce.

2. Health and wellness

This may be the top priority for small businesses with lean teams, and if so, it’s for a good reason since health benefits are usually the top benefit employees are looking for. Your overall health plan can consist of affordable health insurance, dental and vision, gym memberships, and/or mental health and therapy resources.

Small businesses that offer comprehensive health benefits demonstrate that their wellbeing is valued, which can help attract and retain top talent, even in the most competitive markets.

3. Retirement planning

Small businesses should also consider offering retirement planning as part of their overall benefits. This can include a 401(k) plan (with or without matching) or other options. These can be combined with educational resources designed to help employees make better, more informed decisions related to their retirement planning.

Providing retirement planning benefits helps support employees’ long-term financial goals while demonstrating a commitment to supporting their efforts.

4. Learning opportunities and professional development

Training programs, certifications, learning classes, and mentorship opportunities are all ways that small businesses can build a motivated workforce. There are even affordable options for small businesses on a tight budget, including online courses or cross-training with existing team members. These can make professional development a compelling yet budget-friendly method to round out benefits offerings.

5. Paid time off (PTO)

Giving employees different PTO options helps them rest, recharge, and manage their personal responsibilities outside of work, giving them a better work-life balance. Small businesses can offer many different types of PTO, including vacation time, annual holidays, floating holidays, personal days, family leave, mental health days, and more.

Standard PTO plans are now table stakes for small businesses looking to hire top employees, and offering more attractive options may help them stay a step ahead of the competition.

Offering competitive PTO is essential for small businesses aiming to attract and retain top talent. According to the U.S. Bureau of Labor Statistics, private industry employees receive an average of 11 vacation days after one year of service, increasing to 15 days after five years, and 20 days after 20 years. 

Additionally, a survey by QuickBooks found that workers receive an average of 11 days of PTO per year, with 16% of employees reporting no PTO benefits. 

Implementing a PTO policy that meets or exceeds these averages can help small businesses remain competitive in the job market.

6. Recognition and rewards

Sometimes some of the most effective small business benefits options cost very little – or nothing at all. For example, an official recognition and rewards program allows small businesses to give employee shouts or peer-based spotlights. You can provide inexpensive rewards such as a day off, a team lunch, gift cards, or company-branded attire or SWAG.

Effective recognition and rewards programs are proven to increase employee satisfaction and engagement in their roles, driving them to go above and beyond to help the company achieve its most important business goals. 

Research indicates that effective recognition and rewards programs can significantly enhance employee satisfaction and engagement, motivating them to exceed expectations and contribute to the company's key objectives. For instance, a study by Gallup found that workplace recognition not only boosts individual employee engagement but also increases productivity and loyalty to the company, leading to higher retention rates.

Embrace benefits for small companies as a new competitive edge

While ping-pong tables, bean bag chairs, and free coffee are all perks associated with startups and small teams, they may not be exactly the benefits that employees are looking for. Small businesses can carefully consider their options to offer meaningful benefits that closely align with their workers’ needs. As a result, even companies with the smallest teams can build a workplace where employees feel valued, thrive in their roles, and make a more significant contribution to the company’s growth and success.

Frequently Asked Questions (FAQs)

Why are employee benefits important for small businesses with lean teams?

Employee benefits help employees pay for healthcare, save for retirement, take time off from work, and manage other aspects of their life.

Why should small businesses attempt to come up with the best benefits package possible?

Small businesses need every advantage possible. Offering employees attractive benefits can help them increase employee morale and loyalty while keeping costs as low as possible.

What types of benefits should lean companies prioritize?

Small businesses should focus on essential benefits first such as health insurance, retirement planning, and paid time off. They may also consider low-cost, high-benefit perks such as remote work, flexible schedules, professional development opportunities, and employee recognition and rewards programs.

How can an effective benefits strategy help my company?

Making the right decisions in selecting and providing the best employee perks can deliver many valuable benefits for small businesses. These companies can gain a valuable advantage when it comes to finding top talent, and once hired, the right benefits package can help increase employee engagement, productivity, and retention.