Offering employee benefits is one of the best ways to attract and retain top talent, build a positive workplace culture, and boost employee morale. However, balancing employee perks with budget constraints can be challenging for a small business owner.

The good news? Plenty of cost-effective ways exist that offer meaningful benefits without overwhelming your finances. Here's a guide to setting up affordable employee benefits that make a real impact on employee satisfaction.

Start with Basic Health Insurance Options

Health insurance is one of the most sought-after benefits, but it doesn't have to break the bank. For small businesses, there are several budget-friendly health insurance options to consider.

• High-Deductible Health Plans (HDHPs): HDHPs offer lower premiums, making them a more affordable choice for small businesses. While employees will need to pay higher deductibles, pairing an HDHP with a Health Savings Account (HSA) can help them cover these costs while benefiting from tax advantages.
• Small Business Health Options Program (SHOP): The SHOP marketplace, created under the Affordable Care Act, is designed specifically for small businesses. It offers a range of plans and allows small business owners to qualify for tax credits, helping to reduce costs.
• Healthcare Reimbursement Arrangements (HRAs): If traditional health insurance isn't feasible, consider setting up an HRA. With an HRA, you reimburse employees for out-of-pocket health expenses or insurance premiums, letting you control costs while supporting their healthcare needs.

Offering a basic health plan with one of these options can show employees that you're invested in their well-being.

Provide Retirement Savings Options at a Low Cost

Retirement plans are another essential benefit, and even on a small budget, you can offer your employees options to start saving for their future. Again, there are several affordable options you can provide for your team.

• Simple IRA Plans: A Simple IRA is a tax-favored retirement plan for small businesses that allows employers and employees to contribute to individual retirement accounts. As the employer, you'll need to match employee contributions up to 3% of their salary, but this cost is often more manageable for small companies.
• 401(k) Plans through Pooled Employer Plans (PEPs): Pooled Employer Plans allow small businesses to join together and share the administrative costs of offering a 401(k). PEPs reduce costs and ease administrative burdens, making 401(k) plans more accessible.
• Automatic Enrollment IRAs: Even if you're not ready for a full-fledged retirement plan, you can still encourage employees to save by setting up payroll deductions for automatic IRAs. Employees can decide how much to contribute, and the payroll deductions are easy to implement without significant costs.

These options allow employees to build their retirement savings without requiring major upfront expenses for the business.

Offer Flexible Schedules and Remote Work Options

Flexible schedules and remote work opportunities are increasingly in demand, and they don't come with additional costs for employers. In fact, by offering these options, you can save money on office expenses.

• Flexible Working Hours: Allow employees to work hours that suit their lifestyles. For instance, offer flexible start and end times or a compressed workweek, such as four 10-hour days instead of five 8-hour days.
• Remote Work Options: Consider offering remote work options for roles that don't require a physical presence; this gives employees the flexibility they crave and reduces overhead expenses on office space, utilities, and supplies.

Providing flexibility doesn't require a significant investment but can greatly improve job satisfaction and attract top talent seeking work-life balance.

Promote Employee Wellness Programs

Employee wellness programs don't have to be costly to be effective. Even simple initiatives can promote health, reduce stress, and encourage a healthier lifestyle among your employees.

• Discounted Gym Memberships or Fitness Classes: Partner with local gyms or wellness centers to offer discounted memberships to your employees. Many fitness facilities are open to providing corporate discounts, even for small businesses.
• Mental Health Support: Consider offering access to mental health resources, like free online workshops, stress management classes, or subsidized subscriptions to wellness apps. You can also provide Employee Assistance Programs (EAPs) that offer confidential counseling services at minimal cost.
• Healthy Snacks and Break Room Perks: Providing a few healthy snack options or a coffee station can boost morale without adding significant expenses. These small gestures show employees that their well-being matters to you.

Recognize and Reward Employees in Creative Ways

Showing appreciation goes a long way, and small businesses can implement low-cost ways to recognize employees' hard work.

• Monthly or Quarterly Awards: Establish an Employee of the Month or Quarter program where the winner receives a small bonus, gift card, or prime parking spot. It's a minimal investment that promotes a sense of achievement and recognition.
• Personalized Notes and Celebrations: Simple, personalized gestures like handwritten notes, birthday celebrations, or acknowledgment of work anniversaries can make employees feel valued. Celebrating small milestones can significantly improve workplace morale.
• Professional Development Opportunities: Offer skill-building workshops, online training courses, or reimbursements for relevant classes. Investing in your employees' growth shows that you're committed to their long-term success.

Consider Voluntary Benefits for Added Flexibility

Voluntary benefits allow employees to select additional coverage or perks that they can pay for at reduced group rates. These benefits are typically optional and include dental, vision, life insurance, and disability coverage.



This approach is ideal for small businesses because they are not responsible for covering the total cost. Employees benefit from affordable rates, and you provide choices that meet their needs without stretching the budget.

Get in Touch With N.E.W. Accounting

Building an employee benefits program doesn't have to be a financial strain. By offering a combination of flexible schedules, wellness initiatives, retirement plans, and low-cost healthcare options, you create a work environment where employees feel supported and appreciated.

As a small business owner, you may not be able to provide every benefit larger companies offer, but your thoughtful, budget-friendly approach can make a meaningful difference.

Investing in these affordable benefits will attract top talent and foster loyalty and satisfaction among your team members, helping your business thrive well into the future.

Our team at N.E.W. Accounting is ready to handle all your budgeting accounting needs. We have experience working with small—to medium-sized businesses. Let's work together!