Good benefits help you attract and keep good people, without always needing a bigger salary budget. You don't need to match what larger companies offer either. The right benefits for a small business are the ones your team will actually value and use.
Here's an overview of what's commonly offered, and how to think about building a benefits package that works for your business.
What you legally have to provide
Some benefits aren't optional. You must provide statutory sick pay, statutory holiday entitlement, and auto-enrolment into a workplace pension for eligible staff. These form the baseline, and anything beyond this is a genuine choice you make to stand out as an employer.
Common benefits worth considering
Beyond the legal minimum, a range of benefits can make a real difference to staff, often at relatively low cost to you:
• Enhanced pension contributions above the statutory minimum
• Private health or dental insurance
• Extra annual leave beyond the statutory entitlement
• Flexible or hybrid working arrangements
• Wellbeing support, such as an employee assistance programme
• Discounts or perks through a benefits platform
Choosing what's right for your business
Rather than offering everything at once, think about what your team genuinely values. A younger workforce might prioritise flexible working and mental health support, while a team with more family commitments might value enhanced parental leave or childcare support. Ask your team directly what matters to them, since assumptions about what people want are often wrong.
It's also worth reviewing your benefits package regularly, since what staff value can shift over time, and what competitors offer can change the expectations candidates bring to interviews.
Communicating benefits clearly
A generous benefits package only helps if people know about it and understand how to use it. Set out your benefits clearly in your staff handbook, cover them properly during induction, and remind staff periodically about what's available, since benefits are easily forgotten if they're not used regularly.
Frequently asked questions
What benefits do small businesses legally need to offer?
Statutory sick pay, statutory holiday entitlement and workplace pension auto-enrolment for eligible staff are all legal requirements. Everything beyond this is optional.
Do employee benefits have to cost a lot?
No. Some of the most valued benefits, like flexible working or extra annual leave, cost little to nothing to provide, while still making a real difference to staff.
How often should I review my benefits package?
Reviewing it every year is a sensible approach, checking whether your offering still matches what your team values and what's competitive in your industry.
