As an entrepreneur, you’ll want to keep your expenses low until you’re sure your business has the potential to grow consistently. This complicates your ability to hire your employees, which is why most first-time entrepreneurs try to do almost everything by themselves. While that can help you save money, it may not be possible to run your entire business singlehandedly. As you determine which positions you’ll need to fill with professionals, you’ll also need to determine what type of compensation package to offer.
Know What You’re Required to Offer
Before you start building a benefits package and shopping for the best rates, it will help you to know what you’re legally required to provide. For example, if you don’t plan on hiring more than 49 full-time employees, you won’t be required to provide health insurance coverage; other optional extras include retirement plans, life insurance, and vacation days. It can help to consult an employment lawyer to find out more about which benefits you must provide by law.
Why Should You Offer More?
Even though you’re not required to offer the benefits that larger employers commonly provide, it can be beneficial to fatten up your compensation package. Job seekers tend to look for openings that give the best benefits, and things like life and health insurance can be more valuable than a higher salary. The candidates willing to take a job that doesn’t offer benefits are almost certainly the lowest quality candidates. These are the people who are only looking for a paycheck and will exhibit very little loyalty to your organization.
Use Benefits to Attract Top Candidates
You can offer a limited benefits package and add to it over time. For example, start with a package that provides health insurance and paid time off. By providing a small benefits package, you’ll show prospective employees that you care about those you hire. This can help you attract a better class of candidates, which means you may be able to entice candidates away from your competitors.
While offering a benefits package represents an additional cost, it can help you fill your business with top-quality candidates. That, in itself, is an advantage that can’t be dismissed out of hand. As more companies open their doors, everyone will be looking for the best candidates, so it will be up to you to attract the most talented and productive employees on the market. A robust benefits package can help you stay competitive in the job market.