Small businesses strive to build compensation packages and fringe benefits to attract top talent while hiring. This package is vital, especially when competing side by side with heavyweight business leaders. But these businesses operate on tight budgets, unlike big organizations with incredible employment terms. Due to their limited options, startups and medium-sized companies should find a competitive edge in other aspects like company mission or culture.
Startups can appeal to top talents’ interests by offering a fun work environment. Employees should feel listened to and fully engaged in business affairs. Therefore, employers under tight budgets should consider cost-friendly options in their benefits menu like voluntary benefits and assigning vital organizational purposes to employees. Let’s dive deeper into this.
Voluntary benefits might comprise financial counseling, accident insurance, legal services, disability, critical illness, and more. You might offer a combination of these products and let employees pay partially or exclusively via payroll deferral. This package should provide employees with special deals with lower costs relative to general market prices.
A recent survey by Towers Watson also reveals that most employees (nearly half) envision voluntary benefits as a cornerstone in their compensation package. In yet another 2013 survey conducted by Prudential Financial, 74% were firmly convinced by the cost-effectiveness of using voluntary benefits in scaling up the benefit package and boosting employee’s interests and satisfaction.
Commit Employees in Business Purpose
Top talent candidates less often expect to impact business success. Defining their mission and sense of importance to the company upfront is your perfect selling point. Scheming out their career paths based on their training, personal interests, and performance shifts their priorities from salary. Edward L. Deci, a psychologist, clearly demonstrates in his 1970 experiment the essentiality of employees’ motivation relative to money. According to Deci, people have a higher tendency to lose interest in completing a puzzle once paid. On the other hand, motivated individuals strive for extended hours with more interest in the subject. Candidates have a higher tendency to purposeful work than mere payment, and your startup can leverage this idea.
Small businesses need to have clear and defined key selling points. Clear selling points put startups in a win position while competing with prominent firms for top talent. Any small company should never be tied down by tight budgets while pitching side by side with eminent market leaders for the same talent.