Employers that don’t offer a robust employee benefits package often struggle with recruitment and retention, but providing a competitive benefits package can be a financial challenge. The Employer Costs for Employee Compensation report from the U.S. Bureau of Labor Statistics found that the average cost of benefits for private industry employers was 29.6% of all compensation in the third quarter of 2024. For public employers during the same quarter, the proportion was even higher at 38.2%.
Employee benefits are more than just health care and retirement plans. Even small businesses can boost employee satisfaction, engagement, and retention through creative low- and no-cost perks. Here are ways to expand your total rewards package without breaking the budget.
Enhance Workplace Culture
A positive workplace culture fosters engagement, collaboration, and employee loyalty. Small changes can have a big impact on morale and productivity. The culture of an organization is often received through the manager, so make sure to get people managers on board as well as upper leadership.
- Flexible Dress Code: Relaxing dress standards, when appropriate, can increase comfort and morale. A “dress for your day” standard allows employees to be comfortable when appropriate and more formal on days with meetings.
- No-Meeting Days: Designating certain days when internal meetings are not to be scheduled gives everyone an opportunity for focused work time. This can help improve efficiency on longer tasks and reduce stress by giving everyone permission to do some heads-down work.
- Peer-to-Peer Recognition Program: A structured way for employees to acknowledge and celebrate each other’s contributions generates positive teamwork and genuine appreciation. One way to do this is as a digital function in your HRIS or payroll platforms.
- Swag and Branded Merchandise: Giving out leftover promotional items as small rewards can enhance team pride. Pay attention to the swag items people get excited about and order a few for team gifts.
Improve Employee Quality of Life
Work-life balance doesn’t always mean less work time; it can mean simply making the life that occurs outside of working hours a little easier. Employees value perks that make their day-to-day lives simpler and more enjoyable. When overall life satisfaction is higher, employment satisfaction tends to be higher.
- Discount Partnerships: Partner with local businesses to secure employee discounts. Check with industry groups for corporate discounts on phone and wireless services. If you have a benefits broker, they can often point you to programs employees already have access to through health insurance or retirement plan providers.
- Access to Unused Resources: Businesses often have assets that are not fully utilized. Extra software licenses can be assigned to employees looking to expand their skills or work on special projects. Meeting and conference rooms can be made available to employees for personal projects, such as meeting with a financial advisor or hosting a neighborhood book club.
- Quarterly Surprise Perks: Small, unexpected treats create goodwill. Managers can each be given a small budget and tasked with bringing in simple treats on a random day each quarter. Expressing this to employees as an unscheduled “just because” or “thank you” treat from their manager, rather than a company-provided benefit, develops the crucial employee-manager relationship that drives employee engagement.
- Musical Collaboration: Encourage teams, departments, or even individuals to choose their own theme song. Compile into a playlist to play at company functions and around the office for a fun, collaborative atmosphere.
Professional Growth and Development
Providing opportunities for professional development demonstrates that the employer is invested in the long-term careers of its employees. This both boosts retention and upskills a company’s future leaders in preparation for greater future responsibilities.
- Celebrate Skill-Building: Publicly acknowledge employees who take the initiative to learn new skills. Highlighting these achievements in team meetings, newsletters, or internal platforms fosters a culture of continuous learning and motivates others to pursue growth.
- Employee-Led Training Opportunities: Let employees share their expertise with coworkers, whether work-related or personal. Work-related expertise can educate colleagues on what others do within the company and can open eyes to internal career paths. Personal expertise can create connections between employees and foster positive relationships in a team.
- Industry Webinars or Courses: Many professional credentials require annual continuing education credits. These credits can often be purchased at a discount rate in bulk. If you have a population of workers with the same or similar credentials, such as CPAs/EAs in an accounting firm, a bulk purchase of hours can be a low-cost way for employees to maintain the credentials the company depends on.
A robust total rewards package doesn’t have to be expensive. By implementing thoughtful and creative solutions, employers can enhance workplace culture, improve employees’ daily lives, and support professional growth, all at little or no cost to the organization. These small but impactful perks can make a significant difference in recruitment, engagement, and retention.
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