Small Business Profile: Maximizing the Power of Benefits in the Competition for Talent
Small businesses have strategic opportunities to strengthen their offense in the competition for employee talent using workplace benefits. More than half (55%) of smaller employers, those with fewer than 500 employees, say benefits play a very important role in employee retention. However, many current benefits programs may not be having the intended impact:
- Only about one-third (34%) of workers at these smaller employers say the benefits they receive are a very important reason to remain with their employer, compared to more than half (53%) of employees working at larger companies.
- Just 37% of employees at smaller companies, compared to 49% of employees at larger firms, say they are highly satisfied with their workplace benefits.
- The majority (60%) of smaller employers say they have a strong sense of loyalty to their employees—compared to 45% of larger companies—yet only 44% of workers at these smaller companies believe that their employer has very strong sense of loyalty to them.
These results are somewhat surprising given that, among employers that offer benefits, a higher percentage of smaller companies are paying all of the costs for many benefits including medical, dental, vision and prescription drugs than are larger companies. More than one-third of smaller employers (36%) say they pay the entire share of employees’ medical coverage and 29% pay all the cost of prescription drug coverage compared to only 15% and 13%, respectively, among employers with over 500 employees.
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