In 2025, small businesses that want to attract top talent need to think beyond the basics.
Gone are the days when a competitive salary and a standard benefits package were enough to keep employees happy.
Today’s workforce craves perks that enhance their quality of life, support their personal and professional growth, and make them feel valued by their employer.
So what are the best employee perks for small businesses to offer in 2024?
From flexible work arrangements and wellness and employee benefits for small, to unique rewards and personalized incentives, we’ve compiled a list of 15 perks that will help your small business stand out in a crowded job market. Wondering about the process of recruiting talent for your company? Check out our comprehensive guide on how to attract and hire the best employees to enhance your small business.
Employee Perks
72% of Americans stress about money at some point in their life, making financial wellness one of the top employee perks in 2024
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Top Employee Perks for Small Businesses in 2024
Flexible Work Arrangements
In 2024, flexible work arrangements have become the norm rather than the exception. The COVID-19 pandemic accelerated the shift towards remote and flexible work schedules, and now, employees expect their employers to offer a range of flexible options. Wondering if you should bring on freelancers or full-time staff to adapt to flexible work arrangements? Our analysis breaks down the benefits and drawbacks of each choice for your business in 2024.
Importance of Flexibility in Work
83% of employees say flexible work and leave time are extremely or very important
Remote work has proven to be a win-win for both employers and employees. It allows businesses to save on office space and overhead costs while giving employees the freedom to work from anywhere.
In addition to remote work, employees are also looking for flexible schedules. This means allowing them to work outside of the traditional 9-to-5 hours and trusting them to get their work done on their own time. Flexible schedules can be especially beneficial for parents and caregivers who need to balance work with family responsibilities.
Flexible Work Arrangements
80% of employees identify flexible work arrangements as a crucial factor in job evaluation and satisfaction, and 61% have left or considered leaving a position due to the lack of flexibility
Unlimited PTO is another perk that has gained popularity in recent years. Instead of tracking vacation days, employers give their employees the freedom to take time off as needed. This shows a level of trust and respect for employees’ personal lives and can lead to increased job satisfaction and loyalty.
Health and Wellness Benefits
In the wake of the pandemic, full health coverage and wellness benefits have become more important than ever. Employees want to know that their employers are invested in their physical and mental well-being.
Offering comprehensive health insurance is a must in 2024. This means covering not only basic medical expenses but also dental, vision, and mental health services. Employers who skimp on health benefits risk losing top talent to competitors who offer more robust plans.
Mental health support has become a critical component of employee benefits packages. This can include access to therapy sessions, stress management workshops, and mindfulness apps. By prioritizing mental health as a fringe benefit, the best EHR for mental health private practice can also help providers manage and streamline patient care effectively.
Offering gym memberships or fitness stipends is another way to show employees that you care about their well-being. Regular exercise has been shown to reduce stress, improve mood, and boost productivity. By making it easier for employees to stay active, employers can reap the benefits of a healthier, happier workforce.
Importance of Health Insurance
Over 90% of Americans believe employer-sponsored health insurance is important
Professional Development Opportunities
Investing in employees’ professional development is a smart move for small businesses. Not only does the small business benefit if it helps employees grow and advance in their careers, but it also benefits the company by developing a more skilled and engaged workforce. Educating your staff is crucial for the expansion of your small business; explore strategies to enhance their abilities and efficiency.
Offering tuition reimbursement is a great way to support employees who want to further their education. This can include anything from taking a single course to pursuing an advanced degree. By covering some or all of the costs, employers can show that they are committed to their employees’ long-term success.
Providing employees with a budget to attend conferences and training sessions is another way to support their professional development. This allows them to stay up-to-date on industry trends, learn new skills, and network with peers. It also shows that the company values its contributions and wants to invest in its growth.
Mentorship programs are a low-cost way to support employees’ professional development. By pairing newer employees with more experienced colleagues, companies can foster a culture of learning and collaboration. Mentorship programs can also help with retention by giving employees a sense of purpose and connection to the company. “Professional development opportunities are essential for employee retention, as they provide a sense of growth and fulfillment.
As we move into the second half of 2024, it’s clear that employee benefits will continue to evolve. Small businesses that prioritize flexibility, health and wellness programs, and professional development will be best positioned to attract and retain top talent. By staying ahead of the curve and listening to employees’ needs, companies can create a culture of engagement and loyalty that will serve them well for years to come.
Creative Employee Assistance Programs and Rewards for Small Companies
Unique Perks That Set Your Business Apart
Small businesses can stand out from the competition by offering small business employee benefits and unique perks that align with their company culture and values. ,
Allowing employees to bring their furry friends to work can reduce stress, increase job satisfaction, and even boost productivity.
Offering paid time off for employees to volunteer at local charities or non-profits shows that your company cares about giving back to the community. It also allows employees to pursue their passions outside of work, leading to greater job satisfaction and a sense of purpose. Discover cost-effective employee retention tactics tailored for small businesses by implementing community-focused benefits like volunteer time off.
Encouraging employees to pursue passion projects related to their work can foster innovation, creativity, and a sense of ownership. Google’s famous “20% time” policy, which allowed employees to spend 20% of their work hours on projects of their choosing, led to the creation of successful products like Gmail and AdSense. Discover how delegating tasks can boost your small business’s growth and empower your team to innovate, just as Google’s approach did with “20% time”.
Celebrating Milestones and Achievements
Recognizing and rewarding employees for their hard work and accomplishments is crucial for maintaining high morale and reducing turnover. Team gifts can be a thoughtful addition to support a sense of community and appreciation among employees.
Offering engraved glass plaques or trophies as spot bonuses for employees who go above and beyond in their roles shows that you value their contributions and encourage others to follow suit. These bonuses don’t have to be large to be effective – even small gestures like gift cards or an extra day off can make a big impact.
Investing in team-building activities like company outings or retreats can strengthen relationships, foster collaboration, and create a more positive work environment.
Taking the time to get to know your employees and their interests can go a long way in making them feel valued and appreciated. Personalized gifts, whether it’s a book by their favorite author or tickets to a concert they mentioned, show that you listen and care about them as individuals.
Small Business Employee Incentives That Drive Engagement
Profit-sharing or Stock Options
Offering employees a stake in the company’s success through profit-sharing or stock options can be a powerful incentive for small businesses. According to a study by the National Center for Employee Ownership (NCEO), companies with employee stock ownership plans (ESOPs) have 2.3% to 2.4% higher annual sales growth than their non-ESOP counterparts.
Aligning Employee and Company Goals
By tying a portion of an employee’s compensation to the company’s performance, small businesses can create a sense of ownership and shared responsibility.
Attracting and Retaining Top Talent
Offering profit-sharing or stock options can also help small businesses compete with larger companies for top talent.
Generous Parental Leave Policies
Providing comprehensive parental leave policies can be a significant incentive for employees, particularly those in the early stages of their careers.
Paid Maternity and Paternity Leave
Offering paid leave for both mothers and fathers can help small businesses attract and retain employees starting families. “Generous parental leave policies send a message that the company values work-life balance and supports its employees during significant life events,” says Ellen Galinsky, president of the Families and Work Institute.
Child Care Assistance or Subsidies
In addition to paid leave, small businesses can support working parents by providing childcare assistance or subsidies. “Access to affordable, quality child care is a major concern for many employees,” notes Brigid Schulte, director of the Better Life Lab at New America. “By helping to address this need, small businesses can differentiate themselves as family-friendly employers.”
Prioritizing Work-Life Balance for Small Business Employees
In today’s fast-paced work environment, prioritizing work-life balance has become increasingly crucial for employee well-being and overall productivity. Small businesses, in particular, have the opportunity to create a supportive and flexible work culture that promotes a healthy balance between professional and personal life.
Encouraging Time Off and Disconnection
One effective way for small businesses to prioritize work-life balance is by encouraging employees to take time off and disconnect from work when necessary. This can be achieved through:
Mandatory vacation days
Implementing a policy that requires employees to take a certain number of vacation days per year ensures that they have the opportunity to recharge and return to work with renewed energy and focus. As Tony Schwartz, CEO of The Energy Project, notes, “The importance of restoration is rooted in our physiology. Human beings aren’t designed to expend energy continuously”.
Company-wide mental health benefits days
Designating specific days throughout the year as mental health days can help reduce stress and prevent burnout among employees. Small businesses can lead by example, with management taking these days off to show that it’s acceptable and encouraged to prioritize mental well-being.
Health Benefits for Employees
89% of health benefits offered by employers include medical, dental, and vision insurance that allows employees to take care of their health
No-contact policies outside work hours
Establishing clear boundaries between work and personal time is essential for maintaining a healthy work-life balance. Small businesses can implement no-contact policies that prohibit work-related communication outside of designated hours, allowing employees to fully disengage and focus on their personal lives.
Supporting Employee Hobbies and Interests
Another way small businesses can prioritize work-life balance is by actively supporting employees’ hobbies and interests outside of work. This can be done through:
Club or activity stipends
Offering stipends for employees to pursue their passions, such as gym memberships, art classes, or language courses, shows that the company values their personal growth and well-being. As Richard Branson, founder of the Virgin Group, states, “Take care of your employees, and they’ll take care of your business”.
In-office hobby spaces
Creating dedicated spaces within the office for employees to engage in hobbies during breaks, such as a music room or a game area, can help foster a sense of community and encourage work-life balance.
Skill-sharing workshops led by employees
Encouraging employees to share their skills and knowledge with their colleagues through workshops or presentations not only promotes personal development but also strengthens team bonds and increases job satisfaction.
By prioritizing work-life balance through these strategies, small businesses can create a supportive and engaging work environment that benefits both employees and the company as a whole. As Brian Kristofek, President and CEO of Upshot, notes, “Being a great place to work is the difference between being a good company and a great company”.
The Future of Employee Benefits Package for Small Businesses
Adapting to a Post-Pandemic Workforce
The COVID-19 pandemic has dramatically changed the way people work and what they expect from their employers. Small businesses must adapt to these changes to attract and retain top talent in the years to come.
Permanent Remote Work Options
One of the most significant shifts has been the widespread adoption of remote work. According to a 2021 survey by Upwork, 22% of the American workforce will be remote by 2025. Small businesses that offer permanent remote work options will be better positioned to compete for talent with larger companies.
Mental Health and Wellness Focus
The pandemic has also highlighted the importance of mental health and wellness in the workplace. Small businesses that prioritize employee well-being through initiatives like mental health days, employee assistance programs, and stress management workshops will be more attractive to job seekers.
A 2021 study by mental health insurance provider Ginger found that 92% of CEOs reported that their companies increased focus on mental health as a result of the pandemic. Investing in employee mental health not only improves retention but also leads to increased productivity and reduced healthcare costs.
Increased Flexibility and Autonomy
Employees have grown accustomed to the flexibility and autonomy that comes with remote work. Small businesses that continue to offer flexible schedules, unlimited PTO, and trust-based management styles will be better equipped to attract and retain employees in the post-pandemic world.
A 2021 survey by EY found that 54% of employees would consider leaving their jobs if they were not offered flexibility in where and when they work. By embracing a culture of flexibility and autonomy, small businesses can differentiate themselves from more rigid, traditional employers.
Leveraging Technology for Personalized Perks
As employee benefits become increasingly important for attracting and retaining talent, small businesses can leverage technology to make competitive benefits packages that offer personalized perks that cater to individual needs and preferences.
AI-Driven Employee Benefit Platforms
AI-powered platforms like Bennie and League allow small businesses to offer customized benefit packages based on employee data and preferences. These platforms use machine learning algorithms to recommend relevant perks, such as gym memberships for fitness enthusiasts or student loan repayment assistance for recent graduates.
By using AI to personalize their employee benefits program, small businesses can increase employee satisfaction and loyalty while optimizing their benefits budget. A 2020 study by Willis Towers Watson found that 57% of employers plan to invest in benefits technology over the next three years.
Customizable Perk Packages
In addition to AI-driven platforms, small businesses can offer employees the ability to customize their own perk packages. Platforms like Fringe and Zestful allow employees to choose from a menu of perks, such as streaming service subscriptions, meal delivery kits, health savings accounts, or home office stipends.
Customizable perk packages give employees the flexibility to choose benefits and retirement plans that align with their individual needs and lifestyles. This not only improves employee satisfaction but also helps small businesses allocate their benefits budget more efficiently.
Virtual Wellness and Development Programs
With remote work becoming more prevalent, small businesses can leverage technology to offer virtual wellness and professional development programs. Platforms like Wellable and BetterUp provide employees with access to online fitness classes, mental health coaching, and skill-building workshops.
Virtual wellness and development programs not only support employee well-being but also foster a culture of continuous learning and growth. A 2021 report by LinkedIn Learning found that 94% of employees would stay at a company longer if it invested in their learning and development.
Preparing for Gen Z Employee Expectations
As Gen Z enters the workforce, small businesses must be prepared to meet the unique expectations and values of this new generation of employees.
Importance of Flexible Work Options For Gen Z and Millenials
83% of Gen Z and 84% of Millennials view flexible work options as important to job satisfaction, while only 73% and 76% of Gen X and Baby Boomers, respectively, feel the same
Gen Z is a socially conscious generation that prioritizes working for companies that align with their values. Small businesses that incorporate social impact and sustainability initiatives into their employee benefits will be more attractive to Gen Z job seekers.
Examples of such initiatives include paid volunteer days, matching donations to charitable causes, and eco-friendly office policies. A 2020 survey by Deloitte found that 77% of Gen Z respondents prioritize working at organizations whose values align with their own.
Gen Z is the most diverse generation in history, and they expect their employers to prioritize diversity management, equity, and inclusion (DEI) in the workplace. Small businesses that make tangible commitments to DEI through initiatives like unconscious bias training, inclusive hiring practices, and employee resource groups will be better positioned to attract and retain Gen Z talent.
A 2021 survey by Glassdoor found that 76% of employees and job seekers consider a diverse workforce an important factor when evaluating companies and job offers. By prioritizing DEI, small businesses can not only appeal to Gen Z but also foster a more innovative and productive workplace.
Gen Z values transparency and open communication in the workplace. Small businesses that prioritize regular feedback, employee surveys, and transparent decision-making processes will be more attractive to this generation.
Platforms like Lattice and 15Five allow small businesses to facilitate continuous performance management and employee feedback. By creating a culture of transparency and open communication, small businesses can build trust and engagement with their Gen Z employees.
Empowering Your Team in 2024
In 2024, the most successful small businesses will be those that prioritize their employees’ well-being and growth. By offering a mix of flexible work arrangements, comprehensive group health insurance and benefits, and professional development opportunities, you can create a workplace culture that attracts and retains top talent.
Unique perks like pet-friendly policies and volunteer time off can set your company apart, while celebrating milestones and achievements fosters a sense of belonging and appreciation. Profit-sharing and generous parental leave policies align employee and company goals, driving engagement and loyalty. Discover strategies to attract top-tier talent and secure good staff for your small enterprise, enhancing your business’s growth and success.
As we navigate the post-pandemic world, adapting to the changing expectations of the workforce is crucial. Embrace permanent remote work options, prioritize mental health, and leverage technology to offer personalized perks. By committing to social impact, diversity, and transparent communication, you’ll be well-equipped to meet the needs of the next generation of employees.
