Kombucha on tap. Pet insurance. Fully paid health plan premiums.
As a small business owner, it may seem challenging to compete with these kinds of company fringe benefits. But increasingly, employees aren’t wowed by ping-pong tables — they want benefits that fit their lives. Small businesses can lead by being more personal, flexible, and values-driven. Here's how.
Financial benefits are key
The average American worker is feeling squeezed financially. While the job market remains relatively strong, wages haven’t kept pace with the cost of living, homebuying is out of reach for many, and debt—especially from education and healthcare—continues to climb. Surveys show that nearly three-quarters of employees feel stressed about money, and most would struggle to cover an unexpected expense.
Millennials and Gen Z, who now make up the majority of the workforce, are especially anxious about finances. Many are balancing rent hikes, student loans, and day-to-day bills, leaving little ability to save for emergencies or retirement. That stress doesn’t just live at home—it shows up at work, too, in the form of distraction, burnout, and turnover.
Bottom line: Financial wellness is a core part of a healthy workforce. As a small business owner, focusing on benefits that improve your team’s financial confidence and stability can have a positive impact on morale and retention. Once those essentials are covered, you can round out your package with creative, low-cost lifestyle perks that reflect your company culture and values.
Already a Gusto customer? Log in to your account to check out the no-cost, low-cost, and premium benefits available for your team.
1. Financial tools that help with unexpected expenses
Many Americans experience financial stress, with 79% of employed people reporting they want more savings opportunities, and 70% listing “rainy day funds” as a top priority. In our unpredictable world, it’s increasingly difficult—but also increasingly necessary—to save for emergencies.
Help employees handle surprise expenses and put their paychecks to work by using a payroll service that provides free access to funds between paydays. This can help protect employees from credit card late fees and overdraft charges, and build their long-term financial resilience.
2. Health insurance
44% of U.S. adults report that it is “very” or “somewhat” difficult to afford their health-care costs, and 61% of adults worry about being able to afford unexpected medical bills. A healthcare benefit plan can help mitigate this stress for your employees, without breaking your budget. There are plenty of affordable options for medical coverage, dental insurance, and vision insurance. In fact, adding dental or vision coverage often increases total premiums by just 5-10%.
Our Small Business Guide to Health Benefits Savings offers more practical guidance to navigate rising health benefits costs.
3. HSAs and FSAs
Even with a solid health insurance offering, employees often face out-of-pocket costs in the form of prescriptions, co-pays, or dental work. Two popular ways to help save on these expenses are health savings accounts (HSAs) and flexible spending accounts (FSAs). Both allow you to set aside pre-tax dollars for eligible medical expenses, but they differ in how they’re set up, and who qualifies.
HSAs are available only to individuals enrolled in a high-deductible health plan (HDHP). Contributions to an HSA can come from the employee, the employer, or both. Funds roll over year-to-year — even if the employee changes jobs. HSAs are employee-owned, and can grow tax-free over time, making them a great long-term savings tool.
FSAs, on the other hand, are owned and managed by the employer. They can be offered alongside most health insurance plans. Funds are also tax-free, but they generally must be used within the plan year (small rollovers or grace periods may be allowed).
Offering an FSA can save both you and your employees money on taxes. An HSA-eligible plan may appeal to workers who want more control and flexibility in managing their healthcare costs.
4. Workers’ compensation
Accidents suck. And not being insured for them sucks even more. That’s why you should get workers’ compensation insurance, even if it’s not required in your state.
Workers’ comp has your (and your employee’s) back if they get hurt on the job. Generally, policies cover wage replacement for the injured employee, as well as medical bills and vocational rehabilitation.
Cost depends on a variety of factors, including the size of your team, claims history, and industry, but averages around 1.4 percent of an employee’s compensation.
Even if your state doesn’t require you to offer coverage (check the rules here), it’s a smart investment—for the health of your employees and your business.
5. 401(k) plans
More than half of Americans say they’re financially unprepared for retirement. Between rent, groceries, and life in general, putting money away for the future is tough. But you can help.
A 401(k) lets your employees automatically save for retirement straight from their paychecks—before taxes touch it. Contributions reduce taxable income now, and the savings grow tax-deferred for the future. For you as the employer, offering a 401(k) can mean valuable tax credits (up to $5,000 a year for administrative costs under current federal incentives), and a powerful tool for attracting and keeping great people.
6. Identity theft protection
It seems like every other week there’s some massive security breach that reveals our data to hackers on the other side of the world. To show that you’re keeping up with the times—and are concerned about your employees’ cybersecurity—offer free enrollment in a credit monitoring program.
Identity theft protection has grown in recent years as both an employer-subsidized and employer-paid benefit. Given that dealing with identity theft takes an average of 17 hours per incident, you can consider this an investment in employee productivity, too.
7. Student loan assistance
Education-related debt is a looming challenge for many college graduates, and employers are responding to this need: the number of employers offering student loan benefits more than tripled in the five-year period from 2019-2024, from 4% to 14%. Many flexible options exist for structuring this type of benefit: from lump sum payments, to exchanges for other benefits (like cashing out unused paid time off), to employee matching contributions.
Creative types of employee benefits
8. Flexible work options
Some experts say employee burnout is responsible for up to half of annual turnover. Adopt a paid time off (PTO) policy that incorporates sick leave and vacation time. Also keep stress at bay by allowing your team to build the work schedule that jives with their lifestyle. That includes the ability to work when and where they want.
Not only does flexibility promote a healthy work-life balance, but some studies show that employees are more productive on the couch than at their desks. Of course, your company’s specific needs will dictate whether remote work is a good fit, or if “bring your dog to work” day can boost your team’s engagement and camaraderie. But even if you face more constraints than other businesses, you can still find small ways to build flexibility into the workplace. (Making it easy to swap shifts, for example.)
9. Perks for families
Since juggling work and family is no easy task, acknowledging that it takes a village will set your business apart. Consider offering perks that help not only employees but also their dependents and other family members, including children, partners, and parents.
10. Volunteer time
Want to encourage employee altruism while also supporting your community? Nearly one-quarter (24 percent) of companies give their employees PTO specifically for volunteering. Doing so will create a culture of giving back (and generate plenty of warm fuzzies).
11. Seasonal activities
An easy and affordable way to keep things exciting in your office—even during the doldrums of, say, February—is to offer activities that coincide with the season. If you make a successful event into an annual occurrence, your employees just might look forward to it all year long.
12. Office environment
No cold-brew coffee or elaborate floral displays in your office? Don’t sweat it. What matters most is that your team feels comfortable. Even if you’re stuck with fluorescent lighting and cubicles, a few small steps can take your space from drab to delightful.
13. Peer recognition
Here’s a clever (and virtually free) way to reward top performers: Ask employees to recognize each other. Not only is it a stronger motivator than rewards delivered from managers, but it could help improve relationships across your team.
14. Health and wellness
Cue the downward-facing dogs. To show you care about your team’s well-being, go the extra mile for both their physical and mental health.
There are a ton of options out there for wellness programs and benefits to boost your employees’ fitness and nutrition, as well to impact levels of stress, burnout, and emotional well-being. That’s because these issues have been found to directly affect productivity, retention, and overall morale.
One easy, affordable way to support your team’s mental health is by adding an Employee Assistance Program (EAP). These programs offer confidential counseling, crisis support, and referrals for everything from anxiety and depression to financial or family challenges—and they’re surprisingly budget-friendly. Many EAP add-ons cost under $5 per employee per month, making them one of the highest-value benefits you can provide.
Small businesses can also promote healthy workplaces with simple initiatives that reduce stress and boost energy—and those efforts often pay off through lower healthcare costs and higher productivity.
15. Professional development opportunities
Every good employee wants to expand their skill set. And since investing in career development can benefit your business, finding innovative, low-cost continuing education strategies is a win-win.
16. Free snacks
Hanger is a real thing—and growling stomachs can stifle productivity, too. So join the 32 percent of companies who provide free, healthy snacks that feed their team’s body and mind. While it might seem like small potatoes (or potato chips), one survey found that providing snacks really does boost employee happiness.
17. Employee discounts, rewards, and freebies
The only thing people love more than a deal? Free stuff.
Branded swag can increase team pride, incentivize employees, and spread the word about your products or services while your team is out and about. When combined with discounts and rewards, you’ve got a perk that will please literally anyone.
Kick these employee benefits into action
Your small business employee benefits package says a lot about you, your human resources team (if you have one), and your company culture: what’s valued, what’s rewarded, whether you think outside the box. With many people struggling to get by, and many businesses struggling to attract top talent, your choices matter more than ever.
Spend some time figuring out which mix of financial and lifestyle benefits would best serve your team and improve overall employee satisfaction and retention. Keep in mind the challenges your particular full-time employees face, think about your part-time team members (if you want to offer benefits to them), and consider the peace-of-mind and loyalty that extra financial security could bring. Then focus on your benefits administration—and watch the thank-yous (and talent) roll in.
