You know that happy employees are key to a successful company as a business owner or entrepreneur. In order to attract and retain top talent, you need to offer a competitive benefits package. However, many business owners and entrepreneurs overlook some rarer employee benefits that can make a big impact. Here are five of the most underrated employee benefits that your company should consider offering.
Flexible Spending Accounts (FSAs)
If your company offers health insurance, you may already be familiar with Health Savings Accounts (HSAs). However, you may not be as familiar with FSAs. These are similar to HSAs in allowing employees to keep pre-tax dollars for various healthcare expenses. However, there is one key difference between HSAs and FSAs: whereas HSAs roll over yearly, FSAs do not. Any money left unspent in an FSA at the end of the year is forfeited. For this reason, FSAs are best used for predictable expenses such as co-pays, prescriptions, and dental work.
Dependent Care Assistance Programs (DCAPs)
Dependent care assistance programs (DCAPs) are another underutilized employee benefit. DCAPs allow employees to have the necessary funds to pay for qualifying dependent care expenses such as childcare, elder care, and disabled dependent care. Like FSAs, DCAPs also have a “use it or lose it” provision; any money left unspent at the end of the year is forfeited. However, unlike FSAs, DCAPs can be rolled over into a Health Care Flexible Spending Account (HFSA) if your company offers one. This makes DCAPs a great way to offset the high cost of dependent care.
Most companies offer health insurance, but a decent chunk of them forget that dental insurance should be a part of their health insurance package.
Dental health is related to both presenteeism and absenteeism. These two are common productivity killers in the workplace.
A study revealed that employees with dental problems are absent from work more days every year, while those without any dental issues only miss a few days annually. This means that dental insurance can save your company money by reducing absenteeism.
Another study showed that dental pain employees are more likely to have presenteeism issues. This means they are less productive at work because of their dental pain. All of these can be solved by simply visiting the local dentist. The dental professional can proactively take care of the employee’s dental health and, in turn, improve productivity in the workplace. Dental insurance can cover the costs and even promote dental health in the office, making it a valuable employee benefit.
Unlimited Day Offs
While unlimited vacation days may seem like a pipe dream, many companies are beginning to offer this benefit to their employees. As the workforce continues to evolve, employers realize that traditional vacation policies are outdated and no longer reflect the needs of today’s workers.
Offering unlimited vacation days is a great way to show your employees that you trust them to manage their time and take the necessary vacations. It also shows that you value work-life balance and understand that taking time off is vital for mental and physical health.
If your company is considering offering unlimited vacation days, set clear guidelines about how the policy works. For example, you may want to require employees to take a certain number of vacation days per year or to give advance notice before taking extended vacations. Additionally, be sure to communicate the policy to your employees, so there are no misunderstandings.
When most people think of employee benefits, retirement plans are usually one of the first things that come to mind. However, many small businesses do not offer retirement plans to their employees due mainly to the cost and complexity involved in setting them up. Many types of retirement plans are available, so it’s important to do your research before deciding which one is right for your company. Some popular options include 401(k)s, SEP IRAs, SIMPLE IRAs, and Solo 401(k)s. 401(k)s have the benefit of being the most well-known and popular type of retirement plan, but they also tend to be the most expensive. On the other hand, IRAs are less costly to set up but have lower contribution limits.
Offering a retirement plan is a great way to attract and retain employees and provide them with a financial safety net for the future. If you’re considering offering a retirement plan, compare the costs and benefits of each type of plan before making a decision.
Offering competitive employee benefits is essential for attracting and retaining top talent. However, many business owners and entrepreneurs overlook some rarer benefits that can make a significant impact. By offering these benefits, you’ll be able to attract and retain the best employees while also improving morale and boosting productivity levels across your organization..