If you’re a small business owner, it goes without saying that you want to foster the kind of supportive working environment that will attract top talent, generate revenue and take your business to new heights.
But what, exactly, does it take to make your business a place that people will want to work, particularly in today’s competitive hiring environment? That depends on who you ask. Even among small and midsized business owners, there isn’t a complete consensus on the most desirable qualities.
According to The 2023 State of Women survey from HerMoney Media and Principal Financial Group®, women business owners prioritize different factors when it comes to considering the wants and needs of employees, rating higher than men the importance of a positive work environment (75% vs. 62%), focus on mental health and well-being (52% vs. 42%), and opportunities for advancement (50% vs. 41%) to employees.
If you’re looking to deliver the benefits that truly matter to your employees, here are five things that will help set your company apart.
1. For Starters, Listen To What Your Employees Really Want
“The secret to finding the best talent and keeping the best talent is to be a really great listener,” explains Amy Friedrich, President of Benefits and Protection at Principal Financial Group.
The most successful small business owners have conversations with everyone on their staff — or as close as they can come to “everyone” — and ask questions regularly like, “How are you feeling?” or “How are things going?”
“This is not done as part of a performance review; this should be a separate check-in,” Friedrich says.
“It’s an expression of employer care. The historical employee-employer relationship was more transactional. But employees who are engaged long-term say, ‘I feel like my employer cares about me, and when I talk to them, they listen.’ Very often, you retain an employee not because you paid them more, but because you listened, and you gave them a future.”
2. Help Reduce Your Employees’ Financial Stress
Once you’ve tuned into what your employees are feeling, it’s time to look beyond traditional benefits, like health insurance and a 401(k).
“If my medical benefits are set, now I’m wondering, ‘Do I have the financial basics down, and what about a pathway to emergency savings?’” Friedrich says.
This is exactly where financial wellness programs come in, explains Maggie Klokkenga, certified financial planner at Abundo Wealth. “If people don’t understand what they’re supposed to be doing with money, then money comes in, money goes out, and they just hope they have some leftover at the end of every month. It’s incredibly stressful.”
Financial wellness programs can give people the ability to better understand their budget, gain basic financial literacy skills and save more for retirement, Friedrich says. Statistically, we know these programs work: According to The State of Women survey, people with access to workplace financial wellness programs are nearly twice as likely to report higher levels of financial wellness.
And newsflash: An increased level of financial confidence from employees can offer an incredible benefit to your company. “When people are stressed financially, it permeates all parts of their life, whether they realize it or not. If there is a financial wellness program, and the employee feels supported in using it, the employers are going to see a better bottom line,” Klokkenga says.
3. Remember That Insurance Offers Peace Of Mind
Does your company offer disability insurance? If not, it’s time to get a policy in place. “Especially for employees who haven’t saved a lot yet, the most valuable thing they have is their paycheck,” Friedrich says. “If they have an accident or a surgery and are unable to work, that would take away from their ability to earn. Giving them a way to protect that paycheck should be a top priority.”
According to data from the Social Security Administration, a 20-year-old worker has a 1-in-4 chance of becoming disabled at some point before reaching full retirement age.
“For some reason, people will talk about life insurance, but they won’t talk about disability insurance,” Klokkenga says. “But what happens when you’re still living and not able to work?” When employers offer disability insurance, what they’re really offering is peace of mind.
4. Prioritize Mental Health — And The Myriad Benefits That Can Increase It
Employers that offer mental health benefits, like those accessed through an EAP or Employee Assistance Program, have found that this can be differentiating for their companies, Friedrich says. We all have stress — and we all need to talk to someone from time to time, whether we’re dealing with problems in a marriage, caring for an aging parent, or we just need someone to listen.
“This is all small and midsized business owners are talking to me about right now: keeping employees happy,” Friedrich says. “Mental health benefits show you’re really listening to your employees, and we know they can help with retention.”
Beyond an EAP, employers would be wise to put other programs or policies in place that are known to make workplaces more supportive, including autonomy and parental leave. These are two big things that employees will seek elsewhere if their current company isn’t offering it, Friedrich says.
Additionally, something as simple as offering people time off to accomplish their goals is incredibly important. “Give your employees a few hours a month to go see a therapist, take a barefoot walk in the grass, or focus on their financial wellness program,” Klokkenga says. “Because it’s one thing to offer these programs, but it’s entirely another to say, ‘And here is the space to get it done.’”
5. Move Past Any Roadblocks That May Be Holding You Back
Small and midsized business owners have historically overestimated the true annual cost of benefits by a whopping five times, Friedrich says. “This lack of knowledge is the roadblock.” In other words, it may be much more affordable than you think to offer a supportive workplace.
Whatever programs you decide to introduce, remember that your employees are always looking to leadership for guidance. “Everyone from the top down needs to be using these programs; don’t just talk the talk but walk the walk,” Klokkenga says. “Explain everything step-by-step. Don’t just say ‘Here is your program.’ Communicate it, and blast it out in multiple different ways.”
Find more ways to support your employees at principal.com.
This story was sponsored by Principal Financial Group®
About Principal Financial Group®
Principal Financial Group® is a global financial company focused on improving the wealth and well-being of people and businesses. In business for more than 140 years, Principal® helps customers plan, protect, invest, and retire, while working to support the communities where they do business, and build a diverse, inclusive workforce. Learn more about Principal at principal.com.
