What advice would you give to a small business owner who is just starting to put together a benefits package for their employees? What's most important to consider?

What Small Business Owners Must Know When Building a Benefits Package — And Why It Starts with a PLAN Designing your company's first employee benefits package is a major milestone. It's also an opportunity to set a foundation that can grow with your business, attract top talent, and protect your most valuable investment—your people. But here's the truth most small business owners aren't told: buying health insurance isn't the same as building a health plan. One is a transaction. The other is a strategy. And the difference between the two can mean tens of thousands of dollars in cost savings—and significantly better care for your employees. That's why I encourage employers to think differently, and start with a PLAN: P - Plan with purpose. Don't just default to what a broker presents. Think about your company's values, budget, and employee needs. Are your employees younger, more family-focused, or in physically demanding roles? Intentional planning ensures your benefits are aligned with your culture, not just market averages. L - Leverage transparency and data. Many small businesses are stuck in fully insured plans with limited visibility into claims or cost drivers. But today, there are affordable options—like level-funded plans—that give employers more control and insight, even with as few as 5-10 employees. A - Align incentives. Traditional health plans often benefit intermediaries more than the employer or the employee. Choosing partners—TPAs, PBMs, and advisors—who are paid to reduce costs and improve outcomes helps you reinvest savings where they belong: into your people and your growth. N - Navigate the system. The healthcare system is complex by design. Your employees shouldn't be left alone to figure it out. A true health plan includes navigation tools, direct access to high-value care, and support when it matters most—whether that's finding a pediatric specialist or avoiding a surprise bill. Starting small doesn't mean thinking small. With the right strategy and partners, even a 10-person company can build a high-performance health plan that rivals what Fortune 500s offer—and at a fraction of the cost. Remember: benefits aren't just an expense. They're a competitive advantage—when built with a PLAN.

When you're just getting started, the most important thing is to recognize that your benefits package doesn't have to be all-or-nothing—it can (and should) evolve with your business. Start by assessing two things: what your employees actually need, and what your business can sustainably afford. For example, if you have a small team and some employees already have health insurance through a spouse or marketplace, a health stipend might go further than offering a group plan right away. From a strategic tax standpoint, offering benefits like 401(k) contributions, health stipends, or profit-sharing can also reduce your taxable income while creating real value for your team. Some benefits, such as retirement plans or qualified small group health reimbursement arrangements (QSEHRAs), can offer tax advantages for both the business and the employees—so it's worth exploring these options with your CPA early on. Ultimately, the goal isn't just to check a box—it's to design a package that supports retention and morale without sinking your cash flow. Consider building a "phased" plan that scales with your business. For example: Year 1: gym stipends and a simple IRA; Year 2: health stipends or QSEHRA; Year 3: group health and dental. When benefits are aligned with both your employees' needs and your financial strategy, you create a package that's both thoughtful and sustainable.

As the Founder and CEO of Zapiy.com, I know how challenging and important it is to build a benefits package when you're just starting out. In the early days, every dollar counts, but investing in your people is non-negotiable if you want to attract and retain the right talent. The first piece of advice I'd give is to listen closely to your team--or the kind of team you're trying to build. You don't need to offer everything under the sun right away, but you do need to understand what your employees value most. For some, that might be health coverage. For others, it could be flexibility, learning opportunities, or mental health support. Start with what will make the biggest impact on their daily lives. What's most important to consider is not just the cost of the benefits, but the perceived value. Offering something like flexible working hours or remote work options doesn't have a heavy price tag, but it can significantly boost employee satisfaction. At Zapiy, flexibility was one of the earliest "benefits" we offered. It created a culture of trust and autonomy before we were in a place to offer more traditional perks. When you are ready to offer core benefits like health insurance or retirement plans, look for scalable solutions. Many providers offer packages designed specifically for startups and small businesses. These can grow with you and help you remain competitive without overcommitting financially. Also, don't overlook education and personal development. Even a small monthly stipend for courses or access to a learning platform can show your team that you're invested in their growth. At Zapiy, we integrated learning as part of our benefits philosophy early on, and it's helped foster a culture of continuous improvement. Lastly, communicate clearly and transparently. Benefits can only build trust if your team understands what's available and feels included in the decision-making process. The more collaborative you make the process, the more ownership your team will take in building a healthy workplace culture with you. Start with empathy, scale with intention, and always lead with your values. That's been our approach, and it's served us well.

Start by surveying your team to understand their actual needs rather than assuming what benefits they want. When building our agency, I discovered our younger staff valued flexible working arrangements and professional development funds over traditional benefits like dental insurance. Customize packages based on your company's unique culture and industry - for our marketing team, we introduced a "creativity stipend" that's been more appreciated than a slightly higher salary would have been. Most importantly, create a framework that can scale with your growth rather than requiring complete restructuring every year.

In assembling a package of benefits for your employees, don't forget to include the fundamentals that retain and keep your employees motivated. Medical insurance must be your top priority since it suggests that you care for their well-being. Compare rates at different alternatives that are quality coverage but not expensive. To have something with cost and incentives included in the package is an employee morale enhancer for your employees. Paid time off is also necessary. Vacation or personal day, whatever you prefer to say, to enable your employees to take time off whenever they want is a gesture of trust and enables work-life balance. You don't need to overdo it, but some paid time off is necessary. Being flexible and accommodating and capable of working around employees' schedules is a gesture of respect for their time. Lastly, never underestimate communication power. Let employees know about the benefits offered to them and how they can maximize their benefits. Thereby, there is a positive working environment where employees are valued and respected. An optimally designed benefits package not only boosts worker retention but also enhances morale and productivity.

When I was at N26, I saw firsthand how a well-structured benefits package can be a game-changer for attracting and retaining top talent. As the CEO of spectup, I've carried this lesson forward, making sure our benefits align with what our team values most. For small business owners just starting out, I'd say the most important thing is to understand what your employees actually need - it's not just about throwing a lot of benefits at the wall and seeing what sticks. One of our team members once told me that our flexible working hours were the reason they stayed with spectup, even when other companies offered higher salaries. At spectup, we've found that a mix of standard benefits like health insurance and unique perks like professional development opportunities works well. It's also crucial to communicate clearly about what you're offering and why - transparency goes a long way in making your team feel valued. I remember when we introduced a mentorship program at spectup; it not only helped with skill development but also boosted team morale. By understanding your team's needs and being open about what you're offering, you can create a benefits package that truly supports your employees.

When I was putting together our first benefits package, I knew it had to be practical and aligned with what our team values. So, I started by setting a clear budget--knowing what we could afford was crucial. Health insurance was a top priority; I wanted to offer something that would make our team feel secure and valued. Paid time off came next; I believe in work-life balance, and I wanted our team to have the flexibility they need. We also introduced a SIMPLE 401(k) plan to help our team save for the future. Throughout the process, I made sure everything complied with local labor laws to avoid any legal issues. By focusing on these areas, I was able to create a benefits package that supports our team and fits within our business's capabilities.

Start by discovering what your team values most instead of making assumptions. Gather feedback from your team through surveys or brief conversations. For many UK workers, flexible hours, pension contributions and fair sick pay are top priorities. These can drive retention more than higher salaries alone. It's also smart to track what benefits they use. If something's not working, adjust. Think of your package like a service. If it doesn't serve people, it's costing you.

When creating a benefits package for employees, I would like to give one piece of advice: start by setting an annual budget that aligns with your business's financial capacity. Next, conduct industry research and employee surveys to identify the benefits that will be most valuable to your team. Work with an HR or insurance consultant to shop for cost-effective options. Finally, make sure to educate your employees about the total value of their compensation, including both salary and benefits, as this will help attract and retain qualified talent. The most important thing I consider when creating a benefits package is striking a balance between employee needs and the business's budget. Offering key benefits like health insurance and retirement plans, while clearly communicating the total compensation, helps attract and retain talent.

For a small business owner creating an employee benefits package for the first time, my top advice is to start simple, stay compliant, and focus on what matters most to your team. You don't need to match large corporations right away—instead, build a foundation that's affordable, scalable, and meaningful. Start by understanding what your employees truly value. Often, health insurance, paid time off, and retirement savings options (like a SIMPLE IRA or 401(k)) top the list. If traditional benefits are out of reach initially, consider creative, low-cost options like flexible work schedules, wellness stipends, professional development funds, or mental health resources.

My advice to any small business owner starting out is simple: ask your team what matters most to them, and start there. You don't need a big budget, you just need to listen, be thoughtful, and stay consistent. When we first started building our benefits package, we couldn't afford fancy perks but we could offer things that mattered. I sat down with my team and asked, "What would help you most right now?" The answer surprised me. It wasn't higher pay or bonuses, it was help with transportation and more time with family. So we did two things. First, we added a monthly travel allowance. It wasn't much but it helped ease their daily cost. Second, we adjusted our work schedule slightly to allow one Saturday off per month which improved morale almost overnight. As we grew, we added more structure such as basic health coverage, annual physical exams, and skill training stipends but the foundation was always the same. Benefits that felt personal and practical. The most important thing is to keep it honest and steady. Don't overpromise. Don't copy someone else's package just because it looks good on paper. You're building trust. And trust is what makes people stay even when times are tough.

My number one tip is to prioritize value over volume. Employees care deeply about benefits that enhance their overall experience--that's beyond all the obvious health insurance and 401(k) stuff, but adding in mental health resources like telehealth counseling, flexible remote work policies, professional development stipends can be unexpectedly cheap and massively helpful for employee retention (not to mention improved morale]. A recent study by SHRM found that 78% of employees would rather have better benefits than a higher salary, and offerings like these show that you care about their overall wellbeing. Implement one or two low-cost, high-impact perks to start, then scale as your company scales. Also important is communicating well -- even the best benefits lose their luster if employees don't see or understand them. Make education part of onboarding with simple explainer videos or FAQ sheets, and then reinforce through quarterly 'benefits refresher' emails that highlight underused perks (like that $500 annual learning stipend nobody's claiming). Companies that actively communicate benefits experience 30% higher employee engagement, according to data from Paychex. Pro tip: Survey your team annually -- what they need is likely to change over time (think childcare stipends versus student loan assistance) -- and that should inform the evolution of your package. A lean, well-communicated benefits offering beats costly but confusing offerings every time.

When starting to create a benefits package for employees, my advice is to focus on what adds real value to your team while aligning with your business values and budget. For example, since my business emphasizes sustainability and wellness, I've included perks like eco-friendly gifts and wellness workshops. This not only supports my team's well-being but also reflects our brand identity. The most important thing to consider is understanding your employees' needs. Conduct a simple survey or have an open conversation to find out what they value most--whether it's flexible working hours, health benefits, or professional development opportunities. Even small gestures, like offering free products or discounts, can go a long way in creating a positive work environment. Lastly, start small and scale as your business grows. It's okay if you can't offer everything upfront. Focus on meaningful benefits that show you care about your team, and build from there.

Start with what your team really needs. You don't need to offer everything right away. Prioritize health and safety with good insurance benefits alongside paid sick days and gym membership discounts. These basics show you care and can help keep your people healthy and on the job. Also, make it easy for staff to understand what they're getting. No one wants to read pages of fine print. Keep it simple and useful. People will show more loyalty when they receive practical benefits instead of unused flashy extras.

When you're creating a package of benefits for your workers, start with the most essential things that will make the biggest difference. Health care, time off, and retirement contributions are a good place to start. And offering flexibility can go a long way in satisfying employees and hiring employees. You need to weigh what you can offer with what will make your employees feel nurtured. It's not a bad idea to listen to your employees. Ask them what they value most, whether health insurance, a day off from work, or other support. A plan with some choice may be more valuable than take-it-or-leave-it arrangements. You don't need to provide the same benefit packages as megacorporations, but providing your employees with two or three meaningful choices that address their top priorities can create confidence and satisfaction. An efficient benefits plan will boost staff morale and retention. It's an investment in the health and happiness of your workers, and it will end up contributing to the success of the business. Providing the perfect blend of benefits will result in an excellent workplace and motivate and inspire your employees.

My advice to a small business owner creating a benefits package is to prioritize employee well-being while balancing budget constraints. Start with offering essential benefits such as health insurance, paid time off, and retirement contributions. Additionally, consider flexibility options like remote work or wellness programs that can enhance job satisfaction. It's important to align the package with your company culture and employee needs, ensuring it's competitive but sustainable for your business.