How to Build a Cost-Effective Benefits Package for Small Businesses

Control rising costs while offering benefits employees will actually use. Follow these strategies to build a budget-friendly benefits program.

Build a Benefits Package Employees Actually Use

When it comes to creating an affordable employee benefits package, small businesses often feel pulled in two different directions.

Employees are hoping for meaningful and affordable benefits that support their health, financial well-being, and work-life balance. At the same time, employers are looking out for budgets that need to keep up with rising healthcare costs.

So, how do you create a small business benefits package that strikes the right balance - one that employees value without breaking the bank?

The solution isn't spending more - it’s spending smarter. The best benefits packages are the ones employees use, and they don’t have to drain company resources to deliver real impact.

➡️➡️ READ MORE:  Are Your Benefits Keeping Up?

With the right strategy, you can build a cost-effective employee benefits program that supports retention, strengthens recruitment, and protects your bottom line.

Here’s how to make it happen.

First, Listen Up

Do you know which benefits your employees value? Employee surveys, focus groups, or even quick conversations can reveal what matters most to your team.

Aligning benefits with actual needs helps you avoid spending money on perks no one uses. For example, one growing startup assumed freebie snacks and parking stipends were top priorities. After surveying employees, they discovered that mental health support and flexible work options were far more important. Adjusting their package saved money and boosted engagement.

👉Pro Tip: Employee feedback ensures your benefits program investment pays off.

Cover the Essentials

What benefits are your employees expecting? Every effective benefits package starts with core offerings, such as medical, dental, vision, and retirement options. These core benefits remain top priorities for job seekers and are a priority for retention. Offering multiple plan options, such as varying deductibles or voluntary add-ons, gives employees flexibility while keeping employer costs manageable.

Low-Cost Employee Benefits That Boost Loyalty

After covering the essentials, it’s often the little extras that build loyalty and improve retention. Look to additional low-cost, high-impact benefit options that employees can opt into, such as:

These extras improve employee satisfaction and engagement without significantly impacting your bottom line.

Leverage Employee Benefits Communication Through Technology

Even the best benefits package won’t have an impact if employees don’t understand it. Your HR benefits strategy should include the right HR technology to simplify access, communication, and education. Benefits portals, mobile apps, info sessions, or simple one-page guides can help employees easily get resources and information.

When employees understand their benefit options, participation increases, and your investment works harder.

➡️➡️ READ MORE:  The ROI of Employee Benefits

Review and Refresh Your Benefits Package with Data and Benchmarking

Benefits are not a set it and forget it strategy. Because your team's needs change, it's smart to review your offerings every year. 

Keep an eye on the latest employee benefits trends and use benchmarking data to see how your offerings measure up. Track how employees are using their benefits, ask for their feedback regularly, and adjust your package as things shift. 

Control Rising Healthcare Costs With Expert Help

The elephant in the room? Rising healthcare costs. Employers can expect a 9% increase by 2026, according to a recent study. Pharmacy spending, which makes up nearly 30% of total health plan costs, has increased 21% in just four years.

To manage this increase, many businesses are taking action by:

📌 Resource: Navigating Rising Pharmacy Costs for Employers

The Bottom Line

Building the right benefits package doesn’t mean adding more perks. It means listening to your team, focusing on the essentials, adding thoughtful extras, communicating effectively, and getting guidance from the pros. When you do, you’ll end up with a package your employees use and a bottom line that thanks you.

Don't Guess - Get the Data!

Use Data and Benchmarking to Make Smarter Decisions

The most powerful way to stand out isn’t the size of your benefits package; it’s how well it fits your employees' needs. Take a look at benchmark data to see how your benefits compare against industry and regional standards. That way, your benefits program stays meaningful to your employees without stretching your budget.

In this webinar, you’ll learn:

📶How national and regional trends are reshaping employee expectations
📶Where your small business benefits stand compared to competitors
📶Strategies to control costs 

🎥WATCH NOW! Benchmarking Employee Benefits: Using Data to Drive Smarter Decisions

Big Benny Says: Power Up Your Benefits With PEO Services!

Greetings, fearless leaders and HR pros! Big Benny, your Benefits Champion from Propel HR, here to help you unlock the full potential of your employee benefits.

With expert bundling skills and a passion for workplace wellness, I’ll help you build a cost-effective benefits strategy that saves money and attracts top talent.

Ready to be the hero your team needs? Let’s make your benefits package unstoppable.

💥 Contact Big Benny and the Propel HR team today!

🌐 Visit ThePropellers.com

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About Propel HR

Propel HR is an IRS-certified PEO (Professional Employer Organization) and a trusted partner to small and mid-sized businesses for more than 25 years. We simplify HR by managing payroll, benefits, and compliance - helping companies save time, reduce costs, and stay competitive. Visit propelhr.com or call (800) 446-6567 to learn more.