What small businesses are looking for in employee benefits

Preparation is key to being a trusted advisor, and that means understanding clients’ needs to effectively determine which solutions will have the most impact. The needs of small businesses can differ significantly from their larger counterparts with larger budgets and headcounts. Here are a few things SMBs (small and mid-sized businesses) look for as they shop for employee benefits plans.

Tools for acquisition and retention

Attracting top talent means putting together an appealing benefits package for SMBs that don’t necessarily have the name recognition and reputation of larger companies. Health, dental, vision, and life insurance are vital to employees and their families — but they can be costly on their own. Employers who offer benefits can invest in their prospective and current employees by alleviating some or all of this financial burden. In turn, employees may feel valued and want to stick around for the long haul.

How much do health-related benefits matter to today’s workforce? A 2022 survey by the Society for Human Resource Management (SHRM) showed it’s the most valued employee benefit by far, according to HR professionals.¹ 75% of employees with health benefits stated coverage factored in their decision to accept their current job, while 78% said the quality of insurance impacts whether they will stay with their employer,² according to a 2021 survey from America’s Health Insurance Plans (AHIP).

Flexibility

While SMBs may want a strong employee benefits package to acquire and keep talented people, they have to work within a budget. Providing flexibility to your clients — in terms of plan options, lines of coverage, and cost — can help employers control costs while keeping employees happy. For instance, many companies offer voluntary benefits to their teams. This passes some of the premium expense to employees, who are often willing to take on some of the cost for strong coverage at discounted rates.

Ease of use

Forming a strong plan of communication with your clients can help members make informed decisions during open enrollment and use their benefits advantageously. This may take the form of emails, flyers, blog posts, newsletters, or information sessions with Q&As.

You can also make employee benefits easier for groups. Traditionally, benefits are a hassle for HR managers to administer — not only do they have to worry about choosing plans and communicating them to employees, but they also have to manage the paperwork and enrollment. Working with a tech-forward carrier who understands small business needs can make an enormous difference for your clients. They can provide tools, such as BenAdmin software, that cuts down or eliminates paperwork and makes enrolling members simpler and quicker. A digital approach can also make it easy to make changes to benefits, whether it’s adding a new employee or updating coverage after a qualifying life event.

References

¹ https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Pages/2022-Employee-Benefits-Survey.aspx

² https://www.ahip.org/news/press-releases/new-survey-employer-provided-health-coverage-is-delivering-real-value-for-consumers-during-the-pandemic