To offer benefits to employees as a small business, start by picking one or two things that will genuinely make a difference to your team, such as private health insurance, a health cash plan or a low cost wellbeing app.
Small businesses often assume employee benefits are an all or nothing decision, but that isn’t the case. You can start with something affordable, add to it as the business grows and still give your team something genuinely worth having.
We work with plenty of small business owners who find themselves in exactly this position. They know their people are their biggest asset and have seen larger companies offering health insurance and other wellbeing benefits. They would like to do something similar, but aren’t sure where to start – or whether employee benefits are realistic on a small business budget.
The good news is that they often are, once you understand the options available.
Think About What Your Team Would Actually Use
One of the easiest mistakes to make is copying what a much larger company offers without considering whether those benefits are right for your own team.
An employee benefits package only works if people understand and use it, so it’s worth thinking about your workforce before deciding what to buy.
For some employees, access to mental health support, virtual GP appointments and retail or gym discounts may be particularly useful. Employees in physically demanding roles may value quick access to physiotherapy, while other teams may be more interested in private health insurance or support with everyday healthcare costs.
There is no universal list of employee benefits that will suit every small business. The right starting point depends on the people you employ, the support they need and the budget you have available.
Rather than relying entirely on assumptions, you could also ask your employees which benefits they would find most valuable. A simple staff survey can help you make a more informed decision.
Start With Something Affordable
Group health insurance tends to be one of the first benefits people think of, and it can be a strong option if the budget allows. It can help employees access private diagnosis and treatment for eligible short-term conditions, rather than relying solely on the NHS.
However, it isn’t the only place to start and, for some small businesses, it may not be the first benefit worth putting in place.
MySanté, our health and wellbeing app, is a good example of a benefit that costs relatively little per employee while providing access to services people can use throughout the year. It includes 24/7 access to a virtual GP, mental health support, legal and debt guidance, physiotherapy support and discounts on everyday purchases.
For small businesses that want to offer something meaningful without committing to a full health insurance scheme straight away, a wellbeing app can be a sensible first step.
Health cash plans work slightly differently. They allow employees to claim money back towards everyday healthcare costs, which can include dental treatment, eye tests and physiotherapy, depending on the plan selected.
Because health cash plans are generally more affordable than full private health insurance, they can also be a practical way for a small business to introduce employee benefits.
Build Up to Fuller Protection
Once the basics are in place – or if the budget allows you to do more from the outset – you can begin building a broader employee benefits package.
This might include group life insurance, which can provide a lump-sum payment to an employee’s loved ones if they die while covered by the scheme. Dental insurance is another benefit that can be added as the package develops, helping employees with the cost of routine and unexpected dental treatment.
It is also worth considering business protection. Key person insurance and shareholder protection aren’t employee benefits in the traditional sense, but they can be particularly important for small businesses.
If your company relies heavily on a small number of directors, shareholders or key employees, losing one of those people could have a serious financial impact. Business protection can help you plan for that risk alongside the benefits you provide to your wider team.
It Doesn’t Need to Cost What You Think
Cost is usually one of the biggest concerns for small business owners – and understandably so.
However, the cost of employee benefits is often lower than people expect. Some health and wellbeing services cost only a few pounds per employee each month, while health cash plans can provide useful everyday cover without the cost of a full private medical insurance policy.
Even group health insurance can be shaped around the size, needs and budget of a smaller team. The right adviser can help you compare different levels of cover rather than simply pricing the most comprehensive option available.
It is also worth looking at the value employee benefits can bring to the business. A good benefits package can help you support employee health, strengthen your recruitment offer and give existing members of staff another reason to stay.
That value may not always appear neatly as a single figure on a spreadsheet, but it can still make a meaningful difference to a small business.
Get the Right Advice Before You Commit
The easiest way to get employee benefits wrong is to choose the first policy or package you come across without checking whether it suits your team.
Different providers have different prices, minimum employee numbers, eligibility rules and levels of cover. A broker who understands the small business employee benefits market can help you compare the options and decide which benefits are likely to provide the most value.
At Santé Group, this is where we spend much of our time with small business clients: understanding their workforce, priorities and budget, then working out what a sensible starting point looks like.
For some businesses, that might be one affordable health and wellbeing benefit. For others, it could mean introducing private health insurance or creating a wider employee benefits package from the outset. Either way, the package can develop as the business grows.
Offering benefits to employees as a small business doesn’t have to mean matching everything provided by a much larger company. One well-chosen benefit, properly explained to your employees, can make a noticeable difference – particularly in a small team.
If you’re thinking about employee benefits for your small business, speak to the Santé Group team. We can help you understand the options and find a starting point that works for your people and your budget.
