Midwestern business owners know how important it is to take care of their team, often employees are treated like family — but, let’s face it. Offering competitive benefits that compete with the big corporation down the street can feel out of reach for many small to mid-sized businesses.
Here’s the good news. It doesn’t take a Fortune 500 budget to offer employee perks that can help make a big difference for your staff. Here are some creative, budget-friendly employee benefit ideas that won’t break the bank.
No-Cost, High-Value Benefits
Sometimes, the most valuable benefits don’t cost a dime. When implemented with care and consideration, these ideas can help create a work environment that supports your team and boosts retention.
1. Offer More Flexibility to Support Work-Life Balance
According to a recent survey by international recruitment company Randstad, 83% of workers put work-life balance at the top of their priority list, even ahead of salary! Here are some simple ways you can offer more flexibility for your staff.
- Remote Work: If there are roles in your business that can be done from anywhere with an internet connection, consider introducing some work from home opportunities. Even allowing just one or two remote days a week can make a big difference, especially for caregivers or those with long commutes.
- Flexible Hours: Let employees adjust their start and end times to fit their lives. For example, early start/early finish for parents of school age children, or flexible lunch breaks for appointments.
- Flexible PTO: Create a culture where taking time off to recharge is truly supported. You can offer “mental health days” with a no-questions-asked policy, or give all employees their birthday off to celebrate. Consider offering random half-days or “you deserve a break” days as a fun surprise given throughout the year. Provide an extra day of PTO for staff to volunteer for their favorite cause – you can even consider going as a group for team building!
2. Offer Recognition to Show Your Appreciation
According to a recent Gallup poll, well-recognized employees are 45% less likely to leave their job, highlighting the importance of getting recognition right. A little appreciation can go a long way! Here are some meaningful ways you can share the love.
- Employee of the Month awards.
- Handwritten thank-you notes.
- Publicly acknowledge achievements during team meetings.
- Encourage peer-to-peer recognition.
Tax Deductible, High-Impact Benefits
If you’re ready to invest a little in your team, choose benefits that can provide the most bang for your buck. These tax-deductible benefits can help provide long-term value for your staff, and may help demonstrate your commitment to their well-being and future.
3. Offer a Health Reimbursement Account (HRA) to Help Employees Manage Their Health
An HRA is a tax-smart way for small and mid-sized businesses to offer healthcare benefits without the cost of traditional group insurance plans. Employers provide a monthly allowance for healthcare expenses, and employees can direct those funds to any number of healthcare expenses including premiums, copays, prescriptions, and more. The specific rules can vary based on the HRA type – qualified small employer HRA (QSEHRA) and the individual coverage HRA (ICHRA).
4. Provide Paid Education to Help Sharpen Their Skills
Show employees you’re invested in their growth! By helping cover the cost of job-related courses, certifications, or degrees, businesses can build a more skilled workforce while potentially boosting retention. When tied to your company’s goals, it’s a smart way to close skill gaps and help your team grow with your business. Even a modest budget can make a big impact.
5. Invest in Their Future by Matching Retirement Contributions
Help your employees plan for their future with tax-deductible contributions to their retirement. Consider starting small (e.g., match up to 3%) and increase as your company grows.
Creative Extras
Sometimes the most valuable employee perks are completely unconventional! Consider the unique needs and interests of your staff – what would help them have more fun, or experience less stress on the job? Here are some ideas to get the creative juices flowing.
6. Organize Social Outings to Boost Camaraderie
Low-cost activities like potlucks, trivia nights, or walking clubs can be a great way to bring your team together. Reinforcing social bonds outside of work can help promote harmony in the workplace.
7. Offer Pet-Friendly Perks
Do your staff love their furry friends? Let employees bring their pets to work occasionally or partner with insurance providers to offer discounted pet insurance. Perhaps organize a dog park outing, or encourage staff to share photos of their pets and bond over their love of animals.
8. Partner with Local Businesses to Offer a Discount Program
Consider teaming up with other businesses in your community to provide a discount program all employees can enjoy. Your staff can save money and support their local businesses at the same time!
9. Get Creative in Your Break Room
Stock your office’s break room with collaborative items like puzzles, legos, crafting supplies, or board games to give staff a chance to boost creativity and unwind together. Sometimes the best business ideas come when you unplug and get creative!
10. Dress Down (or Dress Up) Days for Some Extra Fun
From casual Friday to trucker hat Tuesday, there are countless ways to bring a team together over attire. Encourage staff to wear their favorite team’s jersey on game day, organize a costume contest on Halloween, or just provide a little more flexibility in the dress code to help staff feel more comfortable on the job.
Becoming an employer of choice doesn’t require the most expensive benefits package. With a little creativity, some thoughtfulness, and a genuine interest in your team’s well-being, you can stand out among employers. No matter what new measures you take on to support your team, consistency is key. Choose an option or two that fits with your company’s brand and culture, and stick to it. You may be surprised by the ripple effect!
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice.
