Why Small Businesses Score Big when Offering Employee Benefits

Posted July 2022 by Delta Dental of Arkansas
Revised November 2024

If you’re running a business, your employees are your most valuable asset. But how do you attract and retain top talent?

One powerful strategy, especially for small-business owners, is to offer attractive employee benefits.

What Are Employee Benefits?

Employee benefits, also known as fringe benefits, are any non-wage, non-salary perks offered to employees in exchange for their services.

Some of these are mandated by law, such as

• Medicare and Social Security contributions
• Workers’ Compensation insurance and
• Unemployment insurance

(Employers with 50+ full-time employees must also provide health insurance and family and medical leave).

While these benefits are essential, focusing on non-mandated employee benefits can significantly enhance your business. Here’s why:

Your Business Benefits from Offering Employee Benefits

1. Improved Recruitment and Retention Rates

2. Two of three job candidates said that the prospective employer’s package of benefits and perks was the most influential factor in their decision to accept or decline a job offer. 

3. Increased Employee Loyalty and Productivity
4. Attractive benefit packages contribute to employee commitment, reduced turnover costs, greater trust among staff members and an enhanced company reputation. This can boost your company’s bottom line and workforce morale.

Your Business Could Suffer From Not Offering Employee Benefits

Here is the flipside: 55% of surveyed employees said they left jobs in the past because they found better benefits or perks—not salary—elsewhere. 

As a small-business owner or manager, you probably agree that offering employee benefits is in your best interest. But before you get overly creative with unlimited latte options and onsite yoga sessions, let’s do a reality check.

 

DYK: What’s the Benefit Employees Want Most?

Comprehensive group health insurance, including dental and vision coverage, ranks as the most valued benefit among nearly all employees. 

If you already offer that, consider doing something extra: Expanded dental and vision coverage tops the list of desired benefits expansions. 

Why is Group Medical/Dental and Vision Insurance Such a Coveted Employee Benefit?

1. Access to Lower Premiums Rates
2. Group rates typically mean lower premiums compared to individual or family plans.

1. Tax Savings
2. Employee contributions are deducted from their gross salary, reducing their taxable income. Adding a flexible spending account (FSA) allows them to save even more. An FSA is a pre-tax savings account for eligible medical, dental and vision expenses.
3. Convenience
4. Payroll deductions mean regular, predictable premium payments, so employees won’t risk losing coverage due to missed payments. Additionally, your premium contributions toward your employees’ coverage are tax-deductible as business expenses.

 

Can Small Businesses Afford the Cost of Medical, Dental and Vision Insurance?

You may be surprised: Small businesses often have greater flexibility than large companies to tailor their group insurance offerings depending on their employees’ needs and priorities.

Delta Dental of Arkansas offers four different dental and vision plans to suit your budget and preferences.
Check us out. 

 

Bottom line: Employee Benefits are Good for Your Small Business

Offering attractive benefits—starting with group health, dental and vision insurance—can reap big benefits for small businesses. These benefits can enhance your employees’ compensation packages, increase job satisfaction and help create a positive company culture.

 

We Can Help Build Your Employee Benefits Package

Delta Dental of Arkansas offers a specially designed portfolio of dental and vision plans to help small businesses with as few as 2 employees meet their benefit goals. We deliver valuable benefits at affordable rates, eliminate complicated benefits administration and cover more than the bare minimum with rich plan designs—that’s the Delta Dental Difference®.

We make things easy for our small business dental and visions plans with:

• Simple application
• No underwriting
• Online benefits management, including monthly premium payments
• Voluntary plans where employees pay 100% of the premiums.

 

Learn More

Explore how Delta Dental of Arkansas can help you build a comprehensive employee benefits package that benefits both your business and your employees.