5 Tips for Offering Employee Benefits on a Limited Budget

Posted August 2022 by Delta Dental of Arkansas
Revised December 2024

So you’ve successfully piloted your small business past the startup phase and are now at the point of growth. Congratulations. You’re ready to hire your first employee or expand your skeleton staff.

And you’re wondering: When should you start offering employee benefits to recruit and retain top candidates, and can you afford it?

The short answer is now and yes.

Why Are Employee Benefits Good for Your Bottom Line?

Providing attractive employee benefits can result in big payoffs for small businesses, especially if raising wages or paying cash bonuses is not financially feasible. Instead, offering tax-advantaged employee benefits, also called fringe benefits, can boost employee satisfaction and company morale without breaking your budget. 

Satisfied employees tend to be loyal, motivated to produce high-quality service and products and inspired to portray your company positively—all of which benefits your profitability.

Consider this: More than 50% of employees say they’d accept a job with a lower salary if it included competitive benefits packages. 

5 Tips for Offering Employee Benefits on a Limited Budget

The message is clear: You can’t afford not to offer employee benefits.

Still, they often account for a major expense for business owners. So how can you afford them?

Here are 5 tips:

1. Think Positively.
• Small businesses often have greater flexibility than large companies to tailor their benefits packages based on employees’ needs and priorities, especially group insurance. You may be pleasantly surprised by what you can offer within your budget.
2. Review Your Finances and Determine a Realistic Benefits Budget.
• Take a close look at your financial situation and set a budget that you can realistically allocate to employee benefits.
3. Involve a Seasoned Professional.
• Consult with a professional from your local small business administration office, an insurance broker or a Human Resources specialist. These experts can provide insights into employment trends and workforce preferences. They can also explain your options and suggest cost-saving ideas you might not have considered.
4. Focus on the Most Popular Benefits.
• Start with the basics. Offer comprehensive health insurance, including medical, dental and vision. And not just the basics: Nowadays, employees are asking for expanded dental and vision coverage.

We have to toot our horn at this point: Delta Dental offers a variety of dental and vision insurance plans designed for small businesses to meet your budget and needs.

5. Consider Cost-Shifting With Voluntary Benefits.
• Offer employee benefits on a voluntary basis, where employees pay 100% of the monthly insurance premiums. This approach reduces employer costs while preserving the 3 key advantages of group insurance for your employees:

• Affordable access to group rates and tax-savings
• Convenience of regular payroll deductions
• Protection against financial loss from health care expenses

Competitive Wages + Attractive Benefits = Top Talent

If you want to hire and retain the best and the brightest employees, offering competitive compensation and attractive benefits will set you apart from your competitors. You’ll be known for your commitment to employee well-being and a positive company culture.

The Delta Dental Difference® Offers Valuable Benefits at Affordable Rates

Since 1982, Delta Dental has supported Arkansas businesses with a comprehensive portfolio of dental and vision insurance plans to suit any company budget and size.

You’ll benefit from:

• Simple applications
• No underwriting
• Convenient online benefits management