November 15, 2017 at 3:25 pm #121086
I am a small business owner trying to find a way to offer benefits that will fit my budget. I only have 5 employees. I’ve found some affordable options, but I can’t afford to do all of them for every employee. What I would like to do instead is offer them a choice. I can offer to pay 50% of their health premium, or match their 401k contribution at 50%. They can choose what is most important to them. For example, three have health benefits through a spouse so the 401k would be their choice. For the others, they would choose the health premium option.
I talked with a colleague and he thought this was a bad idea. I have previously not offered any benefits at all outside of PTO so I think this shows I’m at least trying to give employees a bit more.
Can you offer an opinion? Should I offer the choice or nothing? I can’t afford to go all in.
Thank you in advance.
MorganNovember 15, 2017 at 3:32 pm #121091
Hi small business owner,
Kudos to you for wanting to offer and pay for some employee benefits. You’re correct, some employees may want 401K while others need health insurance. But employers aren’t stuck with all the costs as there are many benefit options that allow you to offer benefits at low cost to you, the employer.
My suggestion is to contact a benefits provider that offers both, like Gusto and then figure out how they can help you structure a benefit plan within your budget. Here we have an article to help you choose which benefits you may be able to offer, as well as info on vendors that provide those services.
Have you considered working with a PEO? For a small business, it gives you great options to provide big-company benefits to your employees, on a small business budget. I’m surprised at how many small business owners haven’t heard of a professional employer organization. It might be a great solution for you.
It looks like you’re well on your way to creating a company that people will want to work for!
- This reply was modified 3 months, 1 week ago by Laura Handrick. Reason: David provided feedback on this to make it more generic