Unlocking Success: Top Small Business Employee Benefits That Attract and Retain Talent

If you’re a business owner, you know how important the right small business employee benefits are when it comes to attracting and retaining great people. Whether you’re running a construction crew, managing a machine shop or growing a small electrical team, hiring today is no small task. 

Big companies have entire departments for recruiting and retention – not to mention bigger budgets and flashier perks. But that doesn’t mean small businesses are out of the game. Not even close. 

Here’s the truth: you don’t need nap pods or ping pong tables in the breakroom to build a strong, loyal team. What you do need is a smart, people-first approach to employee benefits – one that shows your team you value them, not just their labor. 

When employees feel cared for, they show up, they stick around and they help your business thrive. 

When we work with a client, we are helping them assess and manage risks across their business. Inevitably, one risk seems to come up time and time again: employee benefits and retention. Taking the time to walk through your offering with a risk advisor and compare to what others in your industry are doing, you can set yourself apart in recruiting, retention, employee wellness. Plus, your benefits package can directly impact back-to-work programs, safety culture and even your insurance rates. 

So, let’s walk through the most valuable small business employee benefits you can offer, no matter your size or industry. 

Why Small Business Employee Benefits Matter More Than Ever 

Let’s be real: money still matters. But more and more, salary is not the only thing employees are thinking about when they’re choosing where to work. In fact, one survey found that 88% of workers would take a lower-paying job if it came with better benefits. 

And it’s not just talk – here’s a look at which benefits employees say really influence their decision to take (or stay in) a job.

Employees are looking for the full suite: health insurance, time off, flexibility and things that carry outside the office into their personal lives. 

For small businesses, that’s a huge opportunity. You may not be able to match the paycheck of a national chain, but you can offer the kind of meaningful support and personal connection that keeps people around. 

And that pays off. A strong benefits package helps: 

• Lower turnover (good people don’t leave good environments). 

• Boost morale and productivity. 

• Strengthen your reputation (people talk – and reviews matter). 

If you want to attract and keep top talent, great small business employee benefits are one of your most valuable tools. 

Small Business Employee Benefits That Prioritize Health and Wellness 

Your team can’t do their best if they’re stressed about medical bills or running on empty. That’s why a well-rounded wellness program isn’t just a perk – it’s a smart business move that pays off in the long run. 

To be clear, we get it. Health insurance is likely the biggest expense to your business outside of payroll. But offering health insurance isn’t looked at as a “benefit” anymore – it’s an expectation. And if you aren’t meeting that expectation it’s going to be extremely hard to attract and retain talent.   

It’s been shown that effective workplace health programs can reduce absenteeism by up to 27% and healthcare costs by 26%. By implementing them in your business, you can take care of your people and see a return on your investment. 

While health insurance tends to be expensive, there are ways to manage costs (like looking at self-insured options) while still offering great, versatile options that support your team.  

Beyond health insurance, you should build an ancillary benefits program that rounds out your employees’ needs. Again, this is tables takes, not looked at as a “benefit” to your recruits. Here are some affordable ancillary benefits to consider: 

• Dental, and vision insurance – Even partial coverage shows employees you’ve got their back. 

• Health savings accounts (HSAs) or flexible spending accounts (FSAs) – Let employees set aside tax-free dollars for medical costs. 

• Mental health support – Whether it’s a counseling stipend, access to telehealth or a mindfulness app, small steps can help reduce burnout. 

• Preventive care incentives – Flu shots, blood pressure screenings or on-site wellness events can boost long-term health. 

• Wellness perks – From gym discounts to healthier snacks in the breakroom, it all adds up. 

If you're exploring how to structure your health benefits more strategically, this breakdown of level-funded vs. self-funded health insurance can help you weigh the pros and cons and choose the right fit for your business. 

Flexible Work as a Practical Small Business Employee Benefit 

When people think of “flexible work,” they usually picture someone working from home in their slippers. And for some roles, that’s accurate. But in industries like construction, manufacturing and other hands-on trades, flexibility isn’t about working from the couch – it’s about finding ways to make their lives a little easier, no matter what kind of work they do. 

The good news? Even for small businesses with crews in the field, flexibility is still possible, and it can be one of the most powerful small business employees benefits you offer. In fact, 93% of HR leaders say flexibility is the most effective retention strategy. 

Whether your team is behind a desk or on a job site, there are ways to make work fit better into life. 

For Office or Hybrid Roles 

If you’ve got estimators, schedulers or admin staff behind the scenes, some traditional flexibility can go a long way: 

• Remote or hybrid work: Whether you’re willing to offer one or two days at home for focused tasks or just flexible time during the day to attend to appointments or personal responsibilities can make a big impact. Even if your team is primarily in person, allowing occasional out-of-office time shows trust and flexibility.  

• Flexible start and end times: A little wiggle room – like starting early to leave in time for school pickup – can be a game-changer. 

• Compressed workweeks: Four 10-hour days with a long weekend can boost productivity and morale. 

For jobsite teams 

Remote work isn’t an option when you’re on a job site – but that doesn’t mean your team can’t have flexibility. It just needs to be redefined for your environment: 

• Rotating or staggered schedules: Allow crews to adjust start times to accommodate life outside of work. 

• Supportive time-off policies: Make it easy to take a day when something personal comes up.  

• Seasonal flexibility: Offer shorter or staggered shifts during slower seasons when possible. 
• Respectful scheduling: Plan ahead and communicate clearly – because your team’s time matters.
  

Growth-Focused Small Business Employee Benefits 

Good employees want more than a paycheck – they want to grow. 

Investing in your team’s development is one of the most powerful small business employee benefits you can offer. It’s a signal: we see your future here. 

Here’s how you can support that growth: 

• Pay for certifications or training (OSHA 10, CDL upgrades, management courses). 

• Send employees to industry conferences or workshops. 

• Offer tuition assistance for continuing education. 

• Create mentoring programs or job shadowing. 

• Have regular performance reviews that include goal setting and career pathing. 

You don’t have to map out every ladder, but showing your employees a path forward helps them see themselves sticking with you long-term. 

Competitive Compensation and Financial Wellness Benefits 

One of the best ways to keep great employees? Help them feel supported – especially when it comes to their financial future. 

Here are some ways to boost your small business employee benefits without overhauling your entire payroll: 

• Performance bonuses: Reward high effort or safety milestones. 

• Profit-sharing or small equity options: Even a little skin in the game builds investment. 

• Retirement plans: Offer a SIMPLE IRA or 401(k) with a match. 

• Paid time off: Add floating holidays, mental health days or PTO bonuses for longevity. 

• Financial wellness support: Host lunch-and-learns on budgeting, saving or investing. 

Helping your team feel more financially secure creates peace of mind and keeps them from jumping ship at the first better offer. 

Small Business Employee Benefits That Feel Personal 

Sometimes it’s the little things that leave the biggest mark. 

You don’t need a huge HR budget to show your team you care. Here are some creative, personal touches that go a long way: 

• Volunteer hours or donation matching. 

• Pet-friendly policies. 

• Childcare assistance or resources. 

• Summer Fridays or casual dress codes. 

• Team lunches or off-site outings during slower seasons. 

These types of benefits build a culture that feels like a community, which is something that people remember.  

Crafting Benefits for your Key Personnel  

Every business has key employees who are vital to success. It could be an all-star salesperson or a linchpin to your operations. Often, you’ll want additional benefits you can offer key personnel.  

These can vary from stock or stock appreciation rights (SARs) in the company to sabbaticals to additional performance bonuses. Your goal with these is to tie long-term job performance to the benefit.  

Offer stock with a four-year vest. Offer a sabbatical after five years in a management role. Tie bonuses to five-year strategic plan outcomes. Whatever you can do to not only keep your key employees happy – but keep them in your organization.  

How Small Business Employee Benefits Support Overall Risk Management 

At Ellerbrock-Norris, we help business owners think beyond one-off perks and build a benefits strategy that’s part of a holistic risk management approach. 

Why? Because benefits don’t just help with hiring – they impact your business operations, safety, recruitment, key personnel planning, morale and long-term stability. 

Paint a bigger picture with your benefits package. Strategically think about different areas of your business alongside your risk advisor, then see how an improved benefits program and impact your long-term costs and improve risk management. 

When your employees are supported, they show up engaged, focused, and ready to do their best. That reduces risk, improves retention and sets your business up to weather whatever comes next. 

Great small business employee benefits aren’t just a cost – they’re an investment in your team, your reputation and your bottom line. 

Want help building a benefits strategy that supports your team and your long-term goals? Let’s talk.