Pay isn't Everything: Why Benefits Need to Be Prioritized to Grow Your Business

For small businesses looking to take their business to the next level, hiring new employees is a critical step in boosting revenue and expanding the business. In the US, 62% of small businesses prioritize steady and fast growth, and 1 in 3 plan to expand their workforce in the months ahead. This outlook is exciting, but in a tight labor market with historically low unemployment, small and rapidly growing businesses looking to hire have to go toe-to-toe with larger companies that offer competitive wages.

So, how can they compete? Our QuickBooks' research found that pay isn't everything when it comes to employee satisfaction. Offering comprehensive benefits can be instrumental in creating valuable and satisfying employee experiences. Workers who receive some benefits aren't likely to leave their current employer for another (only 18% plan to do so). This is great news for growing businesses looking to attract and retain top talent. But where to begin? I've outlined a few tips for business owners to consider when building their employee benefits package.

Understand the benefits you can offer employees.

As you begin building out a benefits package, make sure you understand and comply with all mandated federal and state laws, like Social Security, unemployment, and workers' compensation insurance. Once covered, you can consider the "voluntary" benefits like health insurance, retirement accounts, and paid time off (PTO) crucial to employees' well-being.

Medical insurance benefits are the most valued by employees. Research shows that as business size increases, the importance of offering health insurance also rises - in fact, 72% of businesses with 30 or more employees perceive this benefit as "very important" compared to just 29% of businesses with one to nine employees. Luckily, there are different ways to offer medical benefits: paying a percentage of the premium and passing the rest of the cost to the employee via their paycheck, or you can elect to pay the entire health insurance premium per employee. Other benefits, such as PTO and retirement plans, can make your business stand out from larger competitors by enabling staff to better prepare for the future and avoid burnout. There's a lot of flexibility in benefits you can offer your employees, so spend time researching what's available to you that best fits your business.

Build the right packages for your business and reevaluate as you grow.

Benefits packages are a financial investment, so you'll want to be clear about your budget and balance that with the ROI for bringing in the best employees to help your business expand. According to the Bureau of Labor statistics, on average the cost of employee benefits per hour is $13.58 in addition to wages. For businesses prioritizing growth, it's important to select a benefits package that can scale with you, making it crucial to find the right provider who can support your growth journey.

The good news is that in many cases, the tools you already use to run your business may have integrated solutions to help you research and select the right coverage. For example, QuickBooks and Allstate Health Solutions recently partnered, giving business owners the ability to find, set up, and run employee medical plans right in their QuickBooks Payroll account. With Allstate Health Solutions, business owners have access to a network of agents who can provide personalized recommendations and prepare a roll-out plan so that employees have instructions for making selections and accessing resources if they need help. More robust benefits will continue to launch and be an option for adding on to your package over time.

Consider other perks that will define your culture.

As part of making your company a great place to work, think about other perks that your employees will appreciate. Simple actions such as catering an occasional lunch, or offering wellness reimbursements or professional development can make employees feel appreciated and invested in. Many workers are just looking to find something they're passionate about - and growing businesses can often provide the perfect place for this kind of work experience. In fact, 42% of employees value employers who can relate to their passions. This is especially important among younger workers (ages 18-34), with 21% finding employers who value and support good causes (such as sustainability and social justice) more attractive compared to other employers in the market.

Focusing on growing your business and your staff is a big step and an exciting opportunity to shape another person's career while supporting their well-being. 2024 will be a year of expansion for many businesses, and having the right employees can be pivotal to your path to success.

Sandy Edwards, Head of Mid-Market Product, Intuit QuickBooks

Edwards is the Head of Mid-Market Product at Intuit QuickBooks with over 13 years of experience in building Intuit's solutions for businesses managing their day-to-day operations, including payroll and benefits.