Starting your own business is an exciting journey filled with opportunities to shape your vision and build your own team. One of the key decisions you’ll face as an agency owner or small business entrepreneur is crafting an employee benefits package that attracts top talent while aligning with your budget. Today’s landscape offers more flexibility and creativity, making it possible to design a customized plan that meets your needs— and your employees’ needs.
For those transitioning from larger organizations, where benefits packages were ready-made and generous, the shift can feel overwhelming. But don’t worry, even if you’re working with a small team—maybe just one or two people—you’ve got options. Some business owners stick with what they’ve always had. Others take the opportunity to design something new and exciting, like including perks such as pet insurance, which has been taking the benefits world by storm. It’s different, yes, but in today’s job market, “different” is what gets people’s attention.
One of the biggest myths out there is that offering benefits has to start with medical insurance. With changes brought by the Affordable Care Act, that’s not always the best option for small businesses. Many employees can find better, more affordable health coverage in the individual marketplace, thanks to subsidies.
Meanwhile, employers are often left footing a hefty bill, especially since they’re required to cover 50% of the employee-only premium. For family plans or older employees, those costs can skyrocket, and that’s when everyone starts asking, “Is there a better way?”
The answer is yes, and it doesn’t mean ditching benefits altogether. Instead, many small businesses are focusing on other types of group perks such as voluntary benefits—think dental, vision, life insurance, and disability coverage.
Take life insurance, for example. Group plans often come with guaranteed coverage limits, meaning employees can qualify without the stress of medical underwriting. That’s a game-changer for folks with preexisting conditions who might otherwise struggle to get coverage.
For smaller teams, partnering with benefits providers who specialize in businesses of your size is essential. Some carriers cater to groups as small as one or two employees, while others may require larger teams. Starting with a defined contribution plan can be a smart move, allowing you to offer employees a fixed amount to apply toward the benefits they value most. This approach provides flexibility for your team while giving you control over costs. Once you’ve got the basics covered, you can start thinking about leveling up. Telemedicine services, mental health support, and health-sharing programs are just a few ways to add value without the sticker shock of traditional medical insurance. These options meet critical employee needs while keeping costs manageable for you.
Of course, no two businesses are alike, so it’s worth taking the time to craft a strategy that fits your goals. Working with a consultant who understands your business can help you build a benefits package that truly works—for both your employees and your budget. Remember, this isn’t just about the short term; it’s about setting yourself up for success.
Rising healthcare costs are a reality we can’t escape, but that doesn’t mean you’re out of options. With cost-effective employee benefits, you can show your team you care, build loyalty and create an agency where people are excited to work and grow.