Employee benefits are an essential part of the employee/employer relationship. As the talent war rages on, businesses are out-competing each other in the benefits department, with good reason. Replacing a great employee costs a lot of money that could be put to better use.
Mid-size businesses can save hiring costs by offering valuable and unique types of employee benefits. This shows you are committed to your employees’ well-being, not just the profits they help you achieve.
A few well-thought-out perks can:
- Attract top talent
- Boost workplace morale
- Increase employee loyalty
- Improve your corporate culture
That said, there’s no one-size-fits-all when it comes to employee benefits for mid-size businesses. With that in mind, here’s a rundown of what you need to know about employee benefits for midsize companies
Read on to learn more about this topic! Click on the sections below to jump right to your specific question.
- What Is Considered a Mid-Size Company?
- How Do Employee Benefits Differ for Mid-Sized Companies?
- Examples of Great Benefits Other Mid-Sized Companies Have Used
- Top Employee Benefits for Mid-Sized Companies
- How to Implement Employee Benefits for Your Mid-Size Company
- Other Resources
What Is Considered a Mid-Size Company?
The definition of a mid-size company is not cut and dry because there is no standard definition under federal law.
Typically, a “mid-size company” is synonymous with a successful business. They are small enough to be nimble and responsive but large enough to have an established customer base and a steady revenue stream.
The best way to truly know if your company is a small or large corporation is by analyzing the number of employees in your workplace and your annual revenue.
- The number of employees – Generally speaking, a mid-size company employs between 100 and 999 employees. However, a company with fewer than 100 employees may still be considered mid-size in some industries, such as technology.
- Annual revenue – mid-sized businesses typically make between $10M and $1B annually.
NB: There are different standards for specific industries. Visit the Federal Small Business Authority to see the size standards for various industries and how that applies to your business.
How Do Employee Benefits Differ for Mid-Sized Companies?
As we stated earlier, mid-sized businesses are an interesting bunch. Even though they’re not as small as a mom-and-pop store, they’re also not nearly as large as an international conglomerate. That means they have more resources than a small business but less financial muscle than a giant company.
These differences leave recruiters in an interesting position when it comes to customizing their employee benefits package. On the one hand, they have more resources to offer more benefits than their smaller counterparts. On the other hand, mid-size business owners may have to provide less expensive options than the giants who can afford more lavish offerings.
Fortunately, you don’t need all the bells and whistles to attract top talent. A few solid perks your employees really need can boost your hiring and retention process.
Here’s a roundup of great examples other mid-sized businesses have used.
Examples of Great Benefits Other Mid-Sized Companies Have Used
|Newport Beach, California
|Staffing and Recruiting
|Career growth and work-life balance. The company offers time and location flexibility and every other Friday off. Employees also enjoy a strong support system throughout the ranks and a clearly defined path for growth.
|New York City, New York
|Great leadership and upward mobility. The organization also scores highly on personalized employee recognition.
|San Francisco, California
|Internet Software and Services
|A pet-friendly office and a remote-first policy. The company offers 14 paid annual holidays, unlimited time off, and monthly health and wellness stipends via a virtual credit card. They also provide a generous 401k & RRSP with a company match.
|Free daily meals and pet insurance. They also offer an all-expenses-paid company trip, referral bonuses, gym memberships/reimbursements, and employee assistance programs.
|Company-sponsored family events. They also provide free beer on tap, home office stipends for remote workers, paid holidays and volunteer time off, and a robust professional development program.
|Adoption assistance and generous parental leave. Other benefits include unconscious bias training, flexible spending accounts, and continuing education stipends. They also offer fitness subsidies and sabbaticals for long-serving employees.
|Schellman and Company, LLC
|100% employer-paid health and dental insurance, quarterly discretionary bonuses, and annual company-paid retreats. They also provide mandatory paid time off and early dismissal on the eve of major holidays.
Top Employee Benefits for Mid-Sized Companies
Several studies show that physical health, mental health, and work-life balance are the main areas of concern for employees looking for a new job.
Mid-sized business owners can become more competitive by investing in their corporate culture and making their workers feel secure about the future by offering these benefits. However, you should keep in mind that benefits aren’t enough to make or break a company culture.
Healthy employees are generally happier and more productive. However, quality healthcare is not cheap. Reports show that the average American spent a staggering $12,500 on healthcare in 2020, and health experts predict this trend is unlikely to change any soon.
Most employers are aware of that, and healthcare benefits have become a standard component of the compensation package for most American workers. Many mid-sized businesses offer a broad range of personalized healthcare plans to suit their employees’ needs.
Medical insurance is designed to help employees reduce out-of-pocket costs for health care. It may be paid by the employer or worker through an employer-sponsored plan. Some employers offer partially or fully subsidized plans as part of their employee benefits package. Other organizations make it available at an additional cost to employees.
A typical medical insurance package covers:
- Hospitalization and surgical expenses
- Prescription drugs
- Office visits with a primary care physician
- Specialist visits
- Some diagnostic procedures
An estimated 90% of employers offer dental insurance as an employee benefit. Some provide it in addition to medical coverage, and others offer it on its own. Some employers choose a simple dental plan covering cleanings and exams, while others include more advanced options like orthodontia or preventive dentistry.
This is highly beneficial for people with vision impairments. Like dental insurance, vision insurance is also offered as part of the healthcare insurance package or a stand-alone benefit.
Vision benefits include items like eyeglasses and contact lenses, laser surgery for cataracts, eye exams, prescription drugs for treating eye conditions, and glaucoma treatments.
Health Reimbursement Arrangements
Health Reimbursement Arrangements, or HRAs, are an alternative to traditional health insurance plans. These accounts are a perfect solution for a worker who may not be able to afford coverage under their employer’s plan.
An HRA is funded by the employer, who makes contributions for each worker yearly to offset healthcare expenses. Employees are then reimbursed when they incur eligible medical costs.
Disability insurance provides employees with income and financial stability if they cannot work for extended periods due to illness or injury.
Businesses can offer fully-subsidized short-term or long-term disability insurance as part of their benefits package or an elective where employees pay part of the premiums.
Work-life Balance Benefits
The lack of a good work-life balance creates stress and burnout, leading to decreased productivity and increased absenteeism. Business owners can promote better work-life balance by offering paid parental leave, generous paid time off, and flexible work schedules. These fringe benefits can have a large impact on your employees’ morale.
Paid Parental Leave
The lack of mandated paid family leave in America is troubling. As things stand, employers can offer as much paid parental leave as they want or nothing at all.
Unfortunately, there are millions of Americans employed by companies without sufficient paid leave policies. Others are simply ineligible for this benefit, meaning they are forced to choose between their family and their job.
Implementing paid parental leave policies can alleviate these concerns, improve employees’ health, and in many cases, increase productivity.
Generous PTO (Vacation Days, Holidays, Sick Days)
Employees who take time off are not just doing something for themselves. Time away from work allows them to rest and recharge, boosting productivity when they return to work. Paid time off is a great low-cost incentive to offer your employees.
Flexible Work Options
Millennials, who make up the bulk of the workforce, are more interested in flexible hours and remote work over pay. Employers can attract this group by implementing asynchronous work weeks, telecommuting options, or introducing a remote work schedule policy for certain positions.
Wellness programs motivate employees to make healthier choices throughout their daily routines. This is a great way to encourage your employees to have a more healthier work-life balance, all while helping you with these strategic HR initiatives:
- Help attract and retain high-quality employees/reduce turnover: Great benefits that empower employees to improve both professionally and personally are very attractive to job seekers.
- Lower healthcare costs for the organization: HealthIER employees mean fewer visits to the doctor, and in turn mean lower healthcare and insurance costs for employers.
- Increase productivity, decrease absenteeism, and subsequently raise their bottom line: Healthier people are happier, more productive, more present and engaged employees. Another added benefit that is a product of this is a more collaborative and cohesive team.
Mental Health Benefits
The National Alliance on Mental Illness reports that 1 in 5 US adults experience some form of mental illness. This is not just a shocking statistic either. When you think about it, it simply means one out of five people you know is probably struggling with a mental health challenge right now.
Remote and hybrid work arrangements have reduced human interactions and made people more isolated. Without the proper support, that can lead to anxiety, sadness, or even depression. Luckily, people are more open about their struggles, creating room for a much-needed conversation about mental health.
Employers can help create an environment where workers feel comfortable talking about their mental health issues and seeking assistance when they need it. Common methods for doing so include:
- Providing access to therapists on-site or through an app
- Offering tools that allow the employee to track stress levels
- Establishing Employee Assistance Programs
- Including mental health coverage in your healthcare package
How to Implement Employee Benefits for Your Mid-Size Company
Implementing a robust employee benefits package is an investment in your workforce, there are lots of reasons why employee benefits are important for any employer. The trick is to find the right balance of cost and coverage that fits your company’s culture, size, and budget.
Here are six steps to help you build something that makes sense for your company’s needs and budget:
Step 1: Identify your key objectives
Ensure the benefits you provide align with your company’s culture and the organization’s long-term strategy. Review your company’s mission statement and determine how your benefits package can contribute to the overall vision or specific company goals.
Step 2: Set up a budget
Employee benefits represent a substantial expense. Consult your accounting department or banker and calculate how much money you can afford to spend. Seek guidance from external benefits providers if you must then rank the benefits in order of importance. That will help you choose the most suitable employee benefits without stretching your budget.
Step 3: Perform a needs assessment
Conduct an internal audit of your current staff and determine the kind of coverage they already have and how beneficial it has been. Use different research methods to assess each demographic’s needs and expectations for their benefits packages. Consider how best you can create a benefits package that stacks up strongly against competitors’ offerings in your industry.
Step 4: Understand your legal obligations
Research federal and state laws for compliance before setting up your benefits package. Employees have different rights in different jurisdictions, and you should aim to comply with all of them when implementing your benefits package.
Step 5: Communicate the new plan to employees
Involving the employees in your employee benefit planning greatly impacts whether or not they buy into the new plan. Provide an in-depth breakdown of the new benefits and follow up to confirm employees understand what the new plan has for them. Give them time to raise any questions or offer feedback before rolling it out. Update the changes in the employee handbook and communicate that to prospective employees right from the start.
Step 6: Conduct periodic evaluation of the benefits plan
Regular evaluation of the benefits plan is key to maintaining it. Set up performance metrics for each benefit to get feedback on which features need more attention from management and where there are opportunities for improvement. Find ways to continually keep up with changing laws, demographics, and the general business landscape.
Interested in how to use Wellness to promote an engaged workforce? Check out the “Definitive Corporate Wellness Landscape” for a high-level view of all of the options on the market right now! (Pro tip: look for the comparison table to which products are most common with companies your size.)
Want to learn more about corporate wellness? Take our three-part Wellness Foundations Webinar Series for HR managers. It’s a kickstart for anyone who wants (or needs) to dive head-first into the industry.
Interested in speaking with a benefits expert for more one-on-one support? Schedule an introductory call with IncentFit. We’ll learn a bit more about your company’s unique needs and point you in the right direction.