SMALL BUSINESS EMPLOYEE BENEFITS: THINKING OUTSIDE THE BOX

Small business owners know that it’s getting more competitive than ever to hire the best and brightest people.  Employee benefits remain a top differentiator for small businesses and yet many are still struggling to deliver just the right benefits.  One idea to consider is to take a fresh approach to employee benefits cost management and innovation for the coming year.

Benefits Customization

According to a recent study, 72% of employees agree that the ability to customize benefits increases loyalty with their employer.  For instance, where are your employees in the game of life . . . newly graduated, married, parents?  Are they caring for aging parents or on the track for retirement?  A benefits program and enrollment system should be in line with these demographics and allow each employee to self-select the benefits that make the most sense for each phase of their journey.

Forbes Advisor states that “put simply, benefits are perks that go beyond what an employee earns in salary or hourly wages. Your industry, size, employee preferences and goals will help determine the benefits you offer to your workforce. As long as it’s well designed, a benefits package can serve as a powerful recruitment and retention tool.”

Creative Funding of Health Plans

It’s also important for small business owners to think outside the financial box when it comes to their healthcare plan design and arrangements.  This is being achieved through creative funding models.  Self-funding was once held strictly for employers with upwards of 1000 employees.  Now employers with as few as 2 employees in some states can take advantage of alternate funding models to leverage their positive experience into cost and risk containment.

Comprehensive Benefit Package Options

What does it take to create a comprehensive group employee benefit package that your employees will appreciate?

* Medical, Dental, Vision, Life, and Disability Income
* Qualified Retirement Plans – 401K, Simple Plan, SEP (Simplified Employee Pension – IRA set up by employer or self-employed individual)
*  Defined Benefit Plans
*  Key person insurance and business succession plans (buy/sell agreement)
* Ancillary benefits at no cost to you – EAP (Employee Assistance Plan) and discounted legal services to create wills, living trusts, and powers of attorney

If you are a small business that is interested in discussing fresh approaches to employee benefits for 2024 and your available options, please contact Fahmy & Associates today at 703-760-4630. We can create a cost-effective plan and deliver it to your employees.

— Ken Fahmy

CERTIFIED FINANCIAL PLANNER® CHARTERED LIFE UNDERWRITER CHARTERED FINANCIAL CONSULTANT