Here’s a tough problem for startups: you need to make a benefits package that’s good enough to keep great people.
But the catch is, you have to do it with way less money than the big guys.
If you don’t get the benefits right, you might see a lot of people leaving. That’s because top talents are looking for more than salary—they’re looking for the complete package.
And most of the time, big companies have comprehensive benefits packages that are hard to say no to.
But there’s a charm to working with a startup—ability to wear many hats, ability to grow with the company, and more. All you need to do is find a way to be competitive, and you can hold your own.
That’s why in this post, we’re talking about budget-friendly startup employee benefits and how to build a benefits setup that’s perfect for the startup world.
This way, you can bring in the stars you need and keep them around.
When you’re building a startup, you want to make sure you’ve got the essentials first.
You have a budget to keep in mind, and you want to make sure you’re spending it wisely.
So, here are the must-haves that can make all the difference:
First up is health insurance.
Everyone needs it, and it’s often the first thing employees ask about. Offering good health insurance shows you care about your team’s well-being.
Plus, it’s a big draw for people of all kinds. After all, health is a universal need, right?
So to provide the right health insurance for your employees, here are some things you can do:
Next, let’s talk about the future.
Retirement savings, like a 401(k), are super important. They tell your team you care about their future.
It’s also a way to attract folks who are looking for a place to grow and settle, adding to your team’s stability and diversity.
Nowadays, this is probably the best perk you can give with the least amount of money in your budget.
Almost everyone wants to work from home. But some people want to experience office work.
According to Forbes, 76% of Millennials, 69% of Gen Z, and 64% of Gen X expect flexible work options from the company.
So, giving them the flexibility can do a lot for them.
This could mean working from home, setting your hours, or having a say in how you do your work. It’s a big win for attracting talent that values work-life balance. This kind of flexibility can make your startup stand out, especially to those who might need a more adaptable schedule.
However, you also need to set clear limitations when implementing this. So, here are some things you can do:
It’s extremely important to make sure everything you offer is up to par legally.
This means following all the rules and regulations about benefits. It’s not the most fun part, but it’s key to making sure your benefits package is solid and won’t cause you headaches down the road.
Keep abreast of all legal requirements related to employee benefits, including health insurance mandates, retirement plan regulations, and labor laws regarding flexible work.
One of the best things you can do is work with legal and HR professionals to ensure your benefits package complies with all laws and regulations. This can help avoid costly legal issues down the line.
Make sure all your benefits policies are documented clearly and are easily accessible to your employees. Regularly update your team on any changes to the benefits or legal requirements.
Later in this blog, we’ll dive into how to communicate your benefits package with employees. So, stay tuned.
By focusing on these key areas first, you have the benefits that most people want.
In the world of startups, standing out is key—not just in what you do but also in how you treat your team.
So, while you need the essentials, you also need some creative benefits that will make your employees feel loved.
Life can get super busy, especially when we’re working a lot.
Sometimes, we forget to take care of ourselves. Having wellness stuff at work, like challenges to drink more water or take more steps, helps everyone stay healthy and happy.
It’s one of the health benefits for startups that can give you the most bang for your buck.
You can start by kicking off monthly wellness challenges that encourage healthy habits, like daily steps or hydration goals. These can be as simple as using a shared spreadsheet or a free app to track progress.
Don’t forget to also recognize the importance of mental health. You can do this by providing designated “mental health days” in addition to regular PTO.
To take it a step further, you can host virtual fitness classes: Partner with local fitness instructors or use online platforms to offer free or discounted virtual fitness classes to your employees.
In a startup, things move fast, and there’s always something new to learn.
When you help your employees learn more stuff, it’s not just good for the employees; it’s great for the company too!
You help them grow, and they also help you grow.
According to Devlin Peck, 92% of employees feel that workplace training positively impacts their job engagement.
To start with professional development for your employees, here are some things you can do:
When a company says you can take time off whenever you need to, it means they trust you to know when you need a break and when there’s work to be done.
That’s what unlimited PTO does.
However, there are a lot of misunderstandings about unlimited PTO.
So, make sure employees understand that while PTO is unlimited, it comes with the expectation of meeting job responsibilities. Clear guidelines help manage this benefit responsibly.
Leaders should model taking PTO to clarify its use and encourage healthy work.
Little things at work can make a big difference.
Simple things like good coffee, a well-stocked snack bar, or ergonomic workstations can make a big difference in day-to-day satisfaction.
If you have a physical office, set up different areas for collaboration, relaxation, and quiet work. Even small spaces can be optimized for variety.
When your company’s perks are about the things you all care about, it’s pretty special.
For example, if your startup is all about sustainability, consider offering benefits like a bike-to-work program, public transit credits, or supporting local green initiatives.
You can also encourage and support volunteering by offering paid time off for employees to work on projects that align with your company’s values and contribute to the community.
Always create opportunities for employees to showcase their non-work-related skills or passions, such as organizing art shows, music performances, or cooking competitions.
That way, they feel that you care about them as a person.
Having a pet-friendly office is super fun and can make everyone feel more relaxed and happy.
Many employees have pets, and most of them don’t like the feeling of leaving their pets alone at home.
But like every other benefit, it has to have some policies.
Once in a while, the company can have a team lunch where everyone gets together to eat and have fun.
It doesn’t have to be fancy; it’s just a nice time to chat and enjoy some good food.
Maybe it’s the first Friday of every month or every other Wednesday. Having a regular team lunch on the calendar gives everyone something to look forward to.
To take it to another level for your employees, be sure to consider everyone’s dietary needs and preferences. The goal is to make sure there’s something for everyone so that no one feels left out.
Another way to spice up team lunches is by letting different team members pick the lunch spot or cuisine each time. It’s a great way to discover new tastes and make everyone feel involved in the choice.
Everyone loves feeling special on their birthday or work anniversary. A small celebration or a personalized note can make someone’s day.
To make sure every celebration gets celebrated, here are some things you can do:
These cool perks show that you care not just about the work your employees do but also about them as a person. It’s all about making sure everyone feels good, grows a lot, and gets to be part of something awesome.
Making your startup a place where everyone loves to work isn’t just about having cool perks. It’s about making sure those perks matter to the people on your team.
Think about it: your team is made up of all sorts of people, each with their likes, dislikes, and life situations. Some might be parents needing flexible hours, while others might love to learn new skills. When you understand these differences, you can create benefits that speak to everyone’s needs.
This is a big deal because it shows you’re not just copying what other companies do; you’re making your workplace special for your team.
When you tailor your benefits to fit your team’s actual needs, your employees start to feel valued and understood.
This is something that makes them want to stick around for the long haul and increases employee satisfaction.
According to Limra’s study, 61% of employees with more than six benefits report being satisfied with their benefits package.
By listening to your team and getting creative with your benefits, you can make your startup a place where everyone feels right at home and satisfied.
Rolling out a new benefits package is a big deal, and getting the word out correctly is key.
It might seem complicated, but it’s simple. Let’s walk through a simple guideline on how you can launch your new perks and make sure everyone’s on board and excited.
Before anything else, make sure everything is ready. This means having all the benefit providers lined up, understanding the ins and outs of each benefit, and being ready to address any questions.
Develop clear, engaging messages about the new benefits. Think about the key points that will resonate most with your team. What makes these benefits awesome? Why did you choose them?
Announce the new benefits at a time when you have everyone’s attention. This could be a dedicated meeting, a special section of a regular team catch-up, or even a surprise lunch event. The goal is to create a moment that feels significant.
Use straightforward, jargon-free language in your announcement. Avoid legalistic or overly technical terms that might confuse or alienate your team.
Create visual aids like slides or infographics that summarize the benefits at a glance. Hand out a simple FAQ document or a one-page summary that people can refer to later.
After the announcement, hold a Q&A session. Be prepared for questions and provide thoughtful, transparent answers. If you don’t know the answer to something, it’s okay to say you’ll find out and get back to them.
After the initial announcement, send a follow-up email with the key details and where to find more information. This ensures that those who need time to process the information or who couldn’t attend the meeting are still in the loop.
Periodically remind your team about their benefits. This could be through email updates, quick mentions in team meetings, or even a dedicated section in your internal newsletter.
Share anonymous stories (with permission) of how team members have positively used their benefits. This could be anything from someone’s experience with a new wellness program to how flexible work hours helped another team member manage their work-life balance better.
Create a dedicated space on your intranet or a shared drive where all benefit information is easily accessible. Include detailed descriptions, how-to guides for enrollment, and contact information for questions.
Organize a virtual or in-person “benefits fair” where employees can learn more about their options. Invite representatives from your benefits providers to talk about what’s available and answer questions.
Host brief training sessions or workshops to walk employees through how to sign up for and use their benefits. This could be particularly useful for more complex benefits like retirement plans or health savings accounts.
Establish a feedback mechanism where employees can share their thoughts on the benefits package. Use surveys, suggestion boxes, or regular check-ins to gather this valuable input.
By following these steps and keeping everything clear and open, you’ll not only launch your new benefits smoothly but also make sure your team feels valued and informed.
And when people know what’s available and how to use it, they’re way more likely to be happy and stick around.
Staying ahead isn’t just about innovation in products or services—it’s also about keeping your benefits package fresh and competitive.
Here’s how you can keep your benefits up-to-date and ensure they continue to meet your team’s needs.
This approach not only helps retain your current talent but also attracts new stars to your startup.
In the journey to make your startup a magnet for top talent, your employee benefits package plays a starring role.
Remember, the key to a standout benefits package isn’t just in the big-ticket items. It’s in the attention to detail, the understanding of your team’s unique needs, and the willingness to adapt and evolve.