4 Tips for Small Business Owners Creating Benefits Packages
Creating an effective benefits package is crucial for small business owners looking to attract and retain top talent. This article presents expert-backed strategies for developing comprehensive and appealing employee benefits. From strategic health plans to customized perks that align with company culture, these insights will help small businesses craft competitive packages that meet their team's needs.
- Start with a Strategic Health Plan
- Build a Phased Benefits Package
- Listen to Your Team's Needs
- Customize Benefits to Match Company Culture
Start with a Strategic Health Plan
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.
Build a Phased Benefits Package
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.
Listen to Your Team's Needs
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.
Customize Benefits to Match Company Culture
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.
