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Start a free trialSince I co-founded CharlieHR, employee benefits at our small business have been something we’ve always prioritised.
But here’s the catch: we didn’t have the means to offer our team “traditional benefits”, so we needed to find new creative ways to make it work.
In this blog post, I’ll provide you with insights into the realm of employee benefits for small businesses: how you can come up with your own approach and why employee benefits at small businesses matter to optimise employee engagement and retention.
So, let’s delve right in!
Crafting a comprehensive benefits package for your small business may not be something you’ve done before, and you may wonder whether it’s a priority amidst your other startup priorities.
After all, there are many other aspects of your small business or startup you need to deal with first, but I learnt over the years that focusing on employee benefits is key to building a successful business venture.
But where to start? First, you need to recognise the significance of benefits for both your business and your people.
I’ll give you a few insights as to why you may start to consider investing in benefits as soon as possible.
Traditionally speaking, the best employee benefits for UK employees (when you work for a company with a headcount of more than 300 employees) look like this:
In the UK, that’s what most employees can expect from a traditional point of view, however, there are many other benefits you can think of when it comes to small businesses.
At Charlie, we’ve always been mindful of trying to come up with cost-effective benefits that our team will truly value.
To understand where we could make the most impact, we ran company-wide surveys to uncover our team’s desires. This allowed us to get a clearer picture of how we could improve retention rates and our ability to attract top talent.
Below, I’ll give you a list of the benefits we offer at Charlie that don’t incur a direct cost for our small business:
These benefits are not tied to financial costs, and they work for us. Of course, one could argue that getting your team members to work “less” could have a significant impact on productivity and business results, but we’ve found that’s not the case at all for us – quite the opposite actually. It’s increased our productivity and helped us retain our team by making space for their mental health and wellbeing.
My advice here, when it comes to building benefits for your small business, is to take initiatives that are specifically crafted for your team. You can take inspiration from ours if you find them helpful, but you first need to understand your team members to get it right.
The best part of these benefits is that you can ramp them up over time. For example:
Implementing benefits at a small business can be tricky – especially when you’ve got limited funds to reward your team members, but once your business starts generating cash flow, it’s the right time to invest in what your team members have been patiently waiting for.
To give you an example, here are the top four benefits we offer at Charlie that have a direct impact on our costs.
As I mentioned earlier in the blog post, health insurance is usually something that’s reserved for bigger companies, mainly because of how expensive it can be.
Nowadays, however, you can find plans tailored to small businesses. In the last few years at Charlie, we invested in a tool that supported our employee’s mental health with up to 6 sessions per year of counselling.
Recognising the importance of our overall health, not just our mental health, we decided to upgrade by investing in health insurance to provide comprehensive physical and mental health coverage, and support our team during the most challenging times.
Benefits for small businesses aren’t always about budget, although keeping a tight purse can sometimes come in handy.
You may not realise it yet, but you may have more room in your budget than you initially thought.
To make sure all of our team enjoyed our HR policies and the initiatives we put into place, we wanted to push it further:
Many small businesses overlook the importance of investing in learning and development (L&D) as part of their benefits.
Progression and L&D go hand in hand, and if your team members really want to evolve within the company, they’ll need the tools to do so.
You can’t expect someone to come in, ask them to upskill and not provide them with the right support to do so. You’ll need to pay for the course that will help them get there, upskill and reap the rewards of it for your business.
At Charlie, we allocate £750 towards Learning and Development each year – this allows our team members to use the budget towards conferences, books, courses, etc. They can also use it on home equipment if needed.
At Charlie, we provide our team members with an employee benefits platform where they can find more than 30,000 discounts on top-market brands.
This also includes discounts towards cinema tickets, grocery shopping and many more – in fact, our Perks platform is seamlessly integrated with our HR software. Find out more about employe discount schemes.
If you’re looking for a way to automate your HR tasks, save time and reward your team at the same time, perhaps you ought to check it out.
So whilst financial resources may be limited, it's important to focus on providing benefits that align with the needs and aspirations of your employees.
Remember, it’s not always about how much money you can invest right now. Be creative when it comes to benefits for your team members, and they’ll appreciate it in return. Also don’t forget to ask for feedback – that way you’ll be able to adjust, iterate and find the best benefits for your small business.