If you have staff, this resource will help you decide what benefits are right for your business and team.

Which staff benefits are right for my business?

Choosing whether to offer staff benefits such as paid time off, health insurance, retirement plans, tuition assistance, etc., can be a hard decision. Often, cost and affordability are primary factors. While compensation is likely the number one factor in an employee’s choice to enter and stay in a job, benefits are also a critical piece of their decision. Certainly, the cost of employee benefits adds another expense to your balance sheet; however, you must not minimize the cost savings and value offered benefits bring to your business.

There are many ways to implement benefits for your staff. When exploring the possibilities for adding benefits to your compensation packages, enter with an open mind and assurance that you can find the right combination within your budget to meet your needs.

Why should I offer benefits?

As a child care provider, there are many reasons why you should offer benefits, and here are a few of them:

• Staff feel more satisfied and more valued.

• You retain staff more easily.

• You become more competitive in a tight labor market.

Providing benefits does not have to be an all-or-nothing concept. Different benefits can be offered, with varying price points (some may be little to no cost, some may be more significant) and even small increases in offerings can make a difference in a tight labor market. You may be wondering where to start and what your options are. Most importantly, you want to be sure that regardless of what benefits are offered, your employees can:

1. See the value in them.

2. Easily understand them.

3. Easily access them.

Depending on your company size and whether individual employees meet certain requirements, there may be some benefits that are legally required of you (workers’ compensation, Family and Medical Leave Act (FMLA), and even medical insurance). Other benefits are not required but are common amongst employers and are a critical decision-making factor when choosing a place of work. While this is not a complete list, here are some of the common benefits that a company can offer employees:

Paid Time Off.

Paid time off (PTO) is one of the most common benefits and is widely appreciated among staff. This can include holidays, vacation leave, and sick days. Having the opportunity to access PTO can improve staff’s overall well-being which can help reduce stress and burnout, especially in a job as demanding as child care. There’s no hard and fast rule on how many PTO days should be offered, and the amount of time offered can gradually increase with more time on the job.

Health Insurance.

Health insurance is usually one of the first things that come to mind when someone thinks of the term “benefits” and is highly sought after by employees and job candidates. As such, if there is any one benefit worth offering to your employees, health insurance is the one to consider. In addition to medical coverage, this benefit can include dental, vision, and prescription coverage. Options within this offering range from full insurance to telehealth to discount programs. Typically, you would find a benefits provider and offer your employees certain benefits from that provider. You could cover a portion of the cost and the employee would pay a set amount per pay period toward the cost of their plan. Alternatively, another option is to simply coordinate the health plan coverage for your staff, offering coverage without financially contributing to the employee’s elected coverage.

Blue Cross Blue Shield and Aetna are two private insurance companies that were frequently named by child care providers across various states when asked what companies they used.

Small businesses can also help their staff sign up for the Affordable Care Act (ACA). The ACA is a comprehensive healthcare reform law that provides affordable insurance for individuals. This law addresses health insurance coverage, health care costs, and preventative care. Health insurance premiums continue to decrease in 2022 and are based on family size and income. To learn more about affordable healthcare options visit Wisconsin’s health exchange website.

Retirement.

Retirement plans allow employees to build financial savings to help them meet their personal long-term financial goals. While employees who opt-in will need to contribute their desired amount of salary per pay period, the benefits that are provided by these plans are 1) individual tax savings and 2) the ability to receive a set amount, or a match to their contribution, by their employer. This will allow their contributions to grow faster, setting them up for higher earnings during their retirement. There are several types of retirement plans, each with its own requirements and advantages. Here’s a quick summary of the plans:

First, you should understand what benefits you would like to offer based on your organization's budget and goals as well as your employees' needs, then think through the types of benefit providers that will help you to make it a reality. Here are some benefit providers that you may come across:

Private insurance (these are the traditional insurance providers like Blue Cross Blue Shield or Aetna). The most common type is a group plan purchased by the employer that covers employees, and possibly their family members. These plans may cost less than an individual seeking their own plan however could still have a price tag that may be too costly for the average child care provider’s budget. You can set how much of the costs you would cover vs. what the employee would pay. You can buy these plans directly from an insurance provider, a broker, or your state’s health insurance exchange.

Outside of offering company-sponsored health insurance, you can still support your employees on an individual basis in accessing low-cost or free health insurance through the Affordable Care Act marketplace. You can help ensure that employees are aware of what they may qualify for and facilitate a connection for them to work with a free Health Care Navigator who can walk them through their options.

To learn more about affordable healthcare options, click here.