As a small- or mid-sized business owner, you’re in a unique position when it comes to shaping the culture of your organization, and one of the most important elements is the benefits package you offer to employees. When it comes time to make that first hire, you might be unsure about what kind of benefits package to put together. Sure, there’s the usual stuff—health insurance, paid time off, retirement plans—but how do you make it all work on a smaller budget, and how do you ensure that it’s compelling enough to attract top talent? Don’t worry. Designing a benefits package doesn’t need to be complicated, and with some careful thought, you can create a competitive and thoughtful offer that will grow with your company.

Start with the Basics: Health Insurance

When it comes to employee benefits, health insurance is often the first thing that comes to mind. As a small business owner, you may be concerned about the costs involved, but offering a comprehensive health plan is one of the best ways to attract and retain employees. Health benefits provide employees with peace of mind, especially in today’s environment. There are a variety of options out there that cater to businesses of all sizes, including group plans through private brokers or state and federal marketplaces. The key is to find a plan that suits both your budget and your employees’ needs. Make sure you’re transparent with your team about what the plan covers and how much they’ll be expected to contribute. If a traditional health plan feels out of reach, consider offering a Health Savings Account (HSA) or a Flexible Spending Account (FSA).

Paid Time Off (PTO): More Than Just Vacation Days

Paid time off is another critical element of any benefits package. Employees who feel they have the flexibility to take time off without the stress of losing income tend to be happier and more productive. But PTO isn’t just about vacation days. It should also cover personal time, sick days, and holidays. Consider offering a mix of paid days off and let employees decide how they want to use them. With today’s remote work environment, you might also want to be flexible about when and how PTO can be used. For small businesses, offering 10 to 15 days of PTO annually is fairly standard and will give you a competitive edge when trying to attract talent, especially when you’re just starting to build your team.

Managing Benefits Documents with Smart Online Tools

Keeping track of benefits documents can quickly get messy if you are not careful, especially when you are juggling multiple employees and updates. Instead of drowning in stacks of paperwork, it makes more sense to digitize everything and use tools that keep your records organized and easy to access. A good place to start is by understanding an overview of merging PDF files, which can help you combine scattered documents into one clean file without having to dig through endless folders. Once you merge the files, you can also move PDF pages around to make sure everything is in the right order, saving you time and giving you peace of mind when you need to find something fast.

Retirement Savings: Helping Employees Plan for the Future

While you might not have the resources to offer a large-scale retirement plan right away, starting a simple plan for your employees is one of the best ways to show them you care about their long-term well-being. Offering a 401(k) plan, even without a match at first, can go a long way in demonstrating your commitment to their future. As your business grows, you’ll be in a better position to offer matching contributions, which will make your company even more attractive. If a 401(k) is too expensive or complicated, consider offering a Simplified Employee Pension (SEP) plan or a Simple IRA. These are less costly to implement and can help employees start saving for retirement, which is an important perk even in the early stages of your business.

Consider Employee Development Opportunities

Your first hire is likely to be someone you invest in, and that investment doesn’t end with their paycheck. Offering professional development benefits shows that you’re committed to their growth and success. This could be in the form of a mentorship program, training stipends, access to conferences, or reimbursement for continuing education. Employees who see opportunities for growth within your company are more likely to stay longer and contribute more. You don’t need to offer a fancy or expensive training program, but even something as simple as giving them access to online courses can help. This also positions you as a company that values learning and career advancement, which can give you a competitive edge over other employers who don’t make this a priority.

Wellness Benefits: The Whole Person Matters

Today, employees are looking for employers who understand the importance of mental and physical health. Wellness benefits are not just about gym memberships or yoga classes—they can be anything that contributes to an employee’s overall well-being. Offering programs or resources that support mental health, like counseling services, can be a game-changer. Employees who feel supported in all aspects of their life—physically, mentally, and emotionally—tend to be more engaged and productive at work. If budget is a concern, you could start small by offering discounted memberships to wellness programs or connecting employees to free resources available through your health insurance provider.

Offer Flexibility with Remote Work or Flexible Hours

In the wake of the COVID-19 pandemic, flexibility has become one of the most sought-after benefits for employees. Offering remote work options, or at least flexible hours, can be a big draw for potential employees. Flexibility allows workers to balance their professional responsibilities with personal obligations, which leads to higher employee satisfaction and retention. While this may not be possible for every type of business, if your company can offer even partial remote work or flexible schedules, it’s worth considering. This benefit can be especially valuable for employees with young children or other personal commitments that make rigid 9-to-5 hours difficult.

Creating a benefits package for your first hire might seem daunting at first, but with a little thought and planning, you can design an offer that’s attractive, fair, and sustainable for your business. Focus on the most important benefits first—health insurance, PTO, retirement, and employee development—and build from there as your business grows. By offering flexibility and wellness benefits, you’ll not only attract talent, but you’ll also foster a positive work culture that will pay off in the long run. Remember, you don’t need to break the bank to offer competitive benefits—just focus on the aspects that matter most to your employees and be transparent with them about what you can provide.