Why Your Small Business Needs a Better Benefits Package

You do everything at your small business—juggling sales, operations, hires, customer service—and it can be easy to let employee benefits be an afterthought. But in today’s competitive talent market, overlooking your employee benefits can cost you more than you think. Neglecting your small business employee benefits can show up in turnover, in recruiting time, in low morale.

At Shipley Benefits, we believe a well-designed benefits package isn’t just a perk—it’s a strategy. It’s a way to attract the right people, retain them, and build a culture where your team does their best work.

“Employee satisfaction with benefits dropped to its lowest in a decade in 2023, standing at 61%.”

— MetLife (U.S. Employee Benefit Trends Study)

What Is a Small Business Benefits Package?

A benefits package is everything you offer your employees in addition to salary. It’s the protections, the programs, the flexibility that support them in health, well-being, and life beyond work. Studies show many employees stay with an employer because of great benefits, and not just because of pay.

Common Components of a Strong Package

Here are core elements small businesses should consider including:

• Health benefits – medical, dental, vision: doctor visits, prescriptions, preventive care

• Paid Time Off (PTO) – vacation, sick leave, parental/family leave

• Retirement savings plans – 401(k) or similar programs, potentially with employer matching

• Life & Disability Insurance – protecting employees and their families in case of unexpected illness or injury

• Wellness & Mental Health Support – programs for stress management, counseling, fitness, etc.

• Flexible Work Options – remote work, flexible scheduling, hybrid models

• Voluntary/Optional Benefits – extra coverages employees can opt into (e.g. accident insurance, pet insurance)

Why Benefits Matter for Small Businesses

1. Attracting Top Talent
   Benefits distinguish you against competitors, including larger employers. Good benefits can make your opportunity more attractive even if your base salary isn’t the highest.

2. Retaining Valued Employees
   Staff stay longer when they feel cared for. Turnover is costly—not just financially, but also in time, training, and lost productivity.

3. Boosting Productivity & Well-Being
   When employees aren’t worried about healthcare, work‐life balance, or financial security, they can focus on their work. Flexible schedules and mental health support reduce burnout.

4. Improving Company Culture
   A benefits package signals to your team that you value them. It builds trust, loyalty, and positive word of mouth—among employees and in your community.

Affordability: Making Good Benefits Realistic

You might assume a strong benefits package costs too much. But done strategically, it can pay off (or cost less in the long run) than losing employees or having low morale. Some cost-efficient strategies include:

• Level-funded health plans – giving more predictability over healthcare costs

• Voluntary benefits – letting employees opt in/pay for extras reduces employer burden

• Wellness programs that lower downstream costs (fewer sick days, fewer large health claims)

• Benchmarking & Smart Plan Design – studying what peer companies offer, choosing options that meet employee needs without overinvesting

Don’t Forget Compliance & Legal!

It’s important to note that offering benefits means staying compliant with federal and state laws. Things like the Affordable Care Act (ACA), HIPAA, COBRA, ERISA, and more are important when staying in line as a small business. Missing deadlines, paperwork, or regulatory changes can lead to penalties. Having an expert partner helps make sure you meet all requirements.

Why Shipley Benefits Is Your Partner in This

Here’s how Shipley Benefits helps small businesses build benefits packages that work:

• We design customized solutions that match your budget and your team’s needs.

• We look for creative ways to reduce costs without cutting on value.

• We stay on top of compliance so you don’t have to—keeping you protected from risk.

• We help with education and communication, so your employees understand and appreciate what’s offered.

• We provide tools and insights so you know how your benefits stack up in your industry.

Final Thoughts

A strategic benefits package is far from a luxury for small business owners and their employees. It’s a smart investment in your people, your business culture, and your bottom line. If you’re ready to move beyond guesswork, build benefits that matter, and strengthen your team, we’re here to help.