What are employee benefits?
Employee benefits are the non-wage perks and programs that employers offer to support their team’s overall well-being—physically, financially, and emotionally. These benefits can include health insurance, retirement plans, paid time off, childcare assistance, wellness programs, and more. In short, benefits go beyond just a paycheck—they help create a workplace where people feel supported and motivated.
For small business owners, offering the right mix of employee benefits can be a game changer. It helps attract top talent, reduce turnover, and build a loyal team. Even if you can’t match big corporations dollar-for-dollar, thoughtful, people-first benefits can give you a major edge. If you’re ready to strengthen team morale, Homebase’s employee happiness tools can help you create a more supportive, engaged workplace.
Common types of employee benefits
Here’s a look at some of the most common and impactful benefits businesses offer:
- Health insurance – Medical, dental, and vision coverage to support physical and mental health
- Paid time off (PTO) – Vacation, sick leave, personal days, and holidays
- Retirement plans – Options like 401(k)s or IRAs, often with employer contributions
- Family and parental leave – Paid or unpaid time off for new parents or caregiving needs
- Childcare benefits – Stipends, Dependent Care FSAs, or flexible schedules
- Commuter benefits – Transportation reimbursements or passes
- Wellness programs – Mental health resources, fitness perks, or wellness stipends
- Flexible work arrangements – Remote work, flexible hours, or 4-day workweeks
These benefits can be tailored based on your team’s needs, your budget, and your company culture.
Why employee benefits matter
A well-rounded benefits package can:
- Attract high-quality candidates – Competitive benefits are often just as important as salary
- Boost retention – Employees who feel valued are less likely to leave
- Improve morale and productivity – People perform better when they feel supported
- Reduce burnout and absenteeism – Benefits like PTO and wellness programs help employees recharge
- Reinforce your company values – Offering benefits that reflect your mission helps build a strong, consistent culture
The best benefits make your employees’ lives easier—not more complicated.
How to choose the right benefits for your small business
You don’t need a massive budget to offer great benefits. Focus on what’s meaningful to your team:
- Ask your employees – Run surveys or casual check-ins to find out what they really want.
- Start with essentials – PTO, flexible scheduling, and wellness support go a long way.
- Add value, not just cost – Look for low-cost, high-impact perks like mental health resources or flexible hours.
- Stay compliant – Certain benefits, like health insurance and leave policies, may be legally required depending on your location and team size.
Start small, build intentionally, and grow as your team grows.
Communicating benefits to your team
Once you’ve built a benefits package, don’t let it go unnoticed. Make sure employees:
- Know what benefits are available
- Understand how to use them
- Can ask questions and get clear answers
- See how benefits align with your company values
Use onboarding packets, your team handbook, and regular check-ins to keep benefits top-of-mind.
Measuring the impact of your benefits
To know whether your benefits are working, track:
- Engagement and retention rates
- Employee feedback and satisfaction surveys
- Utilization rates of various programs
- Recruiting success (Are benefits helping you stand out?)
If your team isn’t using a benefit, it might be time to improve communication or shift your offerings.
How Homebase helps boost employee happiness and support
Offering employee benefits is just one part of the equation—creating a workplace where people thrive is the real goal. That’s where Homebase comes in. We help small businesses simplify HR tasks, stay compliant, and support team well-being every step of the way.
With Homebase, you can:
- Build and share team handbooks with benefit details
- Onboard new hires with benefits enrollment built-in
- Offer flexible scheduling and time-off management
- Send shift reminders, feedback, and team shoutouts
Explore Homebase’s employee happiness tools to support your team, create a better workplace, and build a business where people want to stay and grow.