A Benefits Strategy That Means Business: How to Win Top Talent and Drive Loyalty

It's that time of year again. Open enrollment is around the corner, and if you're leading a small or midsize business, you know what that means: decisions. Tough ones. 

Your team looks different than it did last year. Maybe you've grown. Maybe you've lost a few key people to competitors with bigger benefit budgets. Maybe your workforce has shifted; more parents, more remote employees, more people asking about mental health support or flexible work arrangements. 

And now you're staring down a familiar set of questions: What benefits should we offer? What can we actually afford? How do we compete for talent when we're up against companies with deeper pockets? How do we keep the team we have while attracting the people we need? 

There's no one-size-fits-all answer. But there is a process. A thoughtful, strategic approach that can help you build a benefits package that works for your business and your people. And it starts with asking the right questions. 

Why Your Benefits Strategy Matters More Than Ever 

Benefits are one of the first things candidates ask about. They're often the deciding factor in whether someone accepts your offer or walks away. And for your current employees? Benefits signal whether you see them as assets worth investing in, or line items on a budget. 

Benefits are often a primary factor in accepting a job offer because they can make a significant impact on the life of an employee. When employees feel valued and supported, they're more engaged, more productive, and more likely to stick around. 

But here's where it gets tricky for SMBs: you're balancing cost containment with competitiveness. You're trying to meet diverse employee needs without breaking the bank. And you're doing all of this while running a business. 

So how do you get it right? 

How to Build an Employees Benefits Strategy: Step by Step 

Step 1: Start with Information 

Before you make any decisions, you need to gather the right data. The first thing a small business needs to do when creating a benefits strategy is gather pertinent information on their current offerings and employee needs. Human resources department should do the research. Use all the resources at your disposal to gather the data, including focus groups, surveys, and exit interviews. 

Here's where to focus: 

Align benefits with your business goals 

A good place to start is to align your benefits strategy with your overall business strategy. Determine how the benefits strategy can support long-term business objectives such as growth, profitability, and improving employee retention. Are you trying to attract top-tier talent in a competitive market? Reduce turnover? Manage costs more effectively? Your benefits strategy should reflect those priorities. 

Understand what your employees actually want 

Employee preferences should be a key driver. Gather data on what benefits employees value most. This can be done through surveys, feedback sessions, or analyzing industry trends and benchmarking. Don't assume you know what matters most to your team. Ask them. And pay attention to who's on your team—to offer relevant benefits as well as get an idea of costs, assess your workforce in terms of age, family status, health requirements and related areas. The benefit needs of your workforce will be influenced by their average age, the number of employees who have dependents they may want to coverage and other demographic factors. 

Benchmark against your industry 

Use benchmarking. Research what benefits are commonly offered within your industry and similar providers to make sure your offerings are competitive. Determine your industry benchmarks for benefits and strive to meet or surpass them for a competitive edge. You don't have to match every competitor dollar-for-dollar, but you do need to be in the ballpark. 

Study emerging trends. Stay informed about new and innovative benefits that are gaining popularity, such as wellness programs and mental health resources that support a healthy work-life balance. 

Step 2: Make the Big Decisions 

Once you've gathered your data, it's time to make some strategic choices. 

Set a realistic budget 

Analyze the financial implications and set a realistic budget for the benefits program. Consider the cost of potential benefits and their impact on overall compensation, as well as the potential return on investment in terms of long-term growth. The average cost of benefits is about 30% of total employee compensation for private sector workers, according to the U.S. Bureau of Labor Statistics. That's a significant investment, but it's one that can pay off in retention, engagement, and productivity. 

Decide how you'll administer benefits 

You have options here, and the right choice depends on your business size, resources, and appetite for managing HR complexity. 

• Professional Employer Organizations (PEOs)
• There are many benefits to working with a PEO. Accessing benefits and benefits administration from a PEO can be an effective solution for businesses that prefer to outsource tasks. 
• PEOs provide comprehensive human resources services to small and medium-sized businesses. They can help businesses with their HR functions such as payroll processing, access to benefits, payroll tax administration, and HR, plus help handle a wide range of HR functions, including benefits administration.  
• They also offer the considerable advantage of access to competitive (read: bigger company) benefits. PEOs can provide access to premium benefits that might be difficult for smaller companies to secure on their own. PEOs also provide support  with benefits compliance for PEO-sponsored benefits, so you getstress-relieving assistance with certain reporting and filing requirements.

• In-House Administration

• Some companies choose to manage benefits administration internally, which can provide greater control over the benefits offered and how they are managed. However, this approach requires a team with expertise in tasks such as enrollment, compliance, and employee communication.   

• Many companies that take this route use an insurance broker to help them find coverage for their employees. Insurance brokers are professional intermediaries who help clients find and purchase insurance policies. They have a deep understanding of the insurance market and the nuances of different policies. By assessing a client's specific risks and needs, brokers may recommend the appropriate coverage. Their role involves comparing policies from multiple insurance providers and helping clients receive the best coverage, terms and rates. 

• Benefits Administration Software

• Benefits administration software is designed to help organizations efficiently manage employee benefits. These platforms offer a range of features that simplify the administration of benefits. Effective software should integrate with existing HR and payroll systems to minimize redundant manual data entry and maintain consistency across platforms.  

Give employees choices 

• The individuals in your workforce have different needs and motivations. They will appreciate having options when it's time to sign up for benefits. By giving employees flexibility in choosing their benefits, you are creating the potential for a more engaged workforce and a positive corporate culture. 

• Looking at it in another light, the benefits themselves might offer options: Flexible scheduling, the possibility for remote work, flexible spending accounts and other benefits that address work-life balance support employee well-being. As a result, employees may be more productive and creative, contributing to the organization's success. 

Stay compliant 

It's necessary to make sure the benefits you offer comply with all applicable laws. Familiarize yourself with federal and state laws regarding mandatory benefits such as Social Security, Medicare, unemployment insurance, and workers' compensation. Find out what the Affordable Care Act (ACA) and the Family and Medical Leave Act (FMLA) require of your business. It's also important to make sure you understand the Employee Retirement Income Security Act (ERISA), COBRA, and HIPAA requirements to mitigate issues and potentially expensive penalties. 

Step 3: Roll It Out and Keep Improving 

You've done the research. You've made the decisions. Now it's time to launch your benefits program and make sure it's working. 

Clear communication. Develop a strategy for communicating the new benefits package to employees. Make sure they understand the offerings and how to access them.  

Feedback mechanisms. Establish systems to gather ongoing feedback from employees about the benefits program. The information can help you make necessary adjustments and improvements. Even if you can't give employees everything they ask for or solve every problem, it's important that they know you are open and listening. 

Regular review. Continuously monitor and evaluate the program, so it remains relevant and effective. Regularly update the benefits based on employee feedback and changing needs. 

What Benefits Should You Actually Offer? 

While benefits can vary dramatically depending on the industry or size of a company, there are a few broad categories that most benefits fall under. 

Mandated Benefits 

These are benefits that employers are mandated to provide. In the U.S., these include Social Security, Medicare, unemployment insurance, and workers' compensation. Companies with 50 or more full-time employee equivalents are also required to offer medical insurance or potentially pay an ACA penalty. 

Health and Wellness Benefits 

This includes medical, dental, and vision insurance, as well as wellness programs aimed at promoting employee health. 

Retirement Benefits 

Retirement savings plans such as 401(k) plans, pension plans, or other retirement accounts help employees save for the future. 

Time Off 

This can include vacation days, sick leave, and holidays, allowing employees to take time off. 

Fringe Benefits 

These are additional perks that may include flexible work hours, remote work options, tuition reimbursement, childcare assistance, and lifestyle spending accounts. 

Professional Development 

Employers may offer additional opportunities for training and development, such as workshops, seminars, and courses to help employees improve their skills and promote professional growth.  

Why Great Benefits Are Worth the Investment 

While providing additional benefits on top of what is mandated may seem like a hassle, it is a worthwhile investment. Offering great employee benefits provides significant value to both organizations and their employees. 

Attracting and retaining talent: 

Competitive edge. A robust benefits package can make an organization stand out in a competitive job market. Many job seekers consider benefits as a critical factor when choosing between potential employers. 

Lower turnover. Companies with strong benefit packages generally experience lower employee turnover rates. Employees are more likely to stay with an employer who meets their needs, minimizing the costs associated with hiring and training new staff. 

Health and well-being. Access to health benefits and wellness programs can lead to a healthier workforce, reducing absenteeism, and increasing productivity. Employees who are physically and mentally well are more focused and efficient at work. 

How TriNet Can Help 

A PEO provider like TriNet can provide simple, expert solutions including access to benefits and benefits administration. TriNet works with top insurance carriers, such as Aetna, Kaiser-Permanente, MetLife and Aflac, with great options. 

TriNet's PEO solution can help employers access a wide array of benefits, including medical, dental, and vision insurance; 401(k) retirement plans; life insurance; and disability coverage. 

You can rest assured that TriNet-sponsored plans comply with employee benefit regulations.  

Because the health benefits and retirement plans TriNet provides access to include expert best practice guidance and compliance support, we're with you at every step. TriNet supports the administrative tasks associated with TriNet-sponsored plans, as well as primary fiduciary responsibility for TriNet-sponsored retirement plans, helping to mitigate your risk. Also, our easy-to-use mobile app and self-service portals offer 24/7 online access to benefits information, making it easy for employees to stay informed and engaged with their benefit options.  

And our personalized customer support will give your business a dedicated team to contact for all your HR needs, helping your team better understand and implement effective employee benefits management. 

TriNet also provides another solution if you already work with an insurance broker and sponsor your own benefits. You can continue that relationship and integrate your company-sponsored plan into TriNet's benefits administration solution. TriNet can help administer your company-sponsored plans in the benefits administration solution. 

You also have the option of working with a TriNet Preferred Broker Partner. We have many you can engage. Plus, TriNet preferred broker partners have proven experience in maximizing the value of our platform. 

Contact us today to learn more about how TriNet-sponsored benefit offerings or client-sponsored benefits support options serve our many clients. 

Frequently Asked Questions 

How much should we budget for employee benefits? 

According to research, a good rule of thumb is that benefits typically account for about 30% of total employee compensation. However, your actual budget will depend on your business goals, industry standards, and the specific needs of your workforce. Start by analyzing what you're currently spending, then determine what adjustments make sense based on your strategic priorities. 

What's the difference between working with a PEO and managing benefits in-house? 

A PEO handles benefits administration for you, giving you access to competitive benefit packages typically available only to larger companies. They also support compliance, reporting, and enrollment. Managing benefits in-house gives you more control but requires dedicated HR resources, technology investment, and expertise in compliance and administration. Many companies work with insurance brokers to help navigate the process. 

How do we know which benefits employees actually want? 

Ask them. Use surveys, focus groups, and one-on-one conversations to gather feedback. Also consider your workforce demographics—younger employees may prioritize student loan assistance or professional development, while employees with families may value robust health coverage and flexible work arrangements. 

What benefits are we mandated and required to offer? 

All employers must provide Social Security, Medicare, unemployment insurance, and workers' compensation. If you have 50 or more full-time equivalent employees, you're also required to offer medical insurance under the Affordable Care Act (ACA) or potentially face penalties. Familiarize yourself with FMLA, ERISA, COBRA, and HIPAA requirements as well. State mandates may also apply and vary by state.  

Can we offer different benefits to different employees? 

Yes, to a point. Offering a range of benefit options allows employees to choose what works best for them, which is a smart strategy. However, you must be careful to comply with nondiscrimination rules. You can't offer benefits based on protected characteristics like age, race, or gender, and certain types of plans (like health insurance and retirement plans) have specific nondiscrimination requirements. 

How often should we review and update our benefits strategy? 

At minimum, annually, ideally before open enrollment. But you should also gather ongoing feedback throughout the year and be prepared to make adjustments as your workforce changes, new trends emerge, or business priorities shift. Benefits aren't a "set it and forget it" part of your business. 

What if we can't afford to match our competitors' benefit packages? 

Competitiveness isn't just about dollar-for-dollar matching. Sometimes flexibility, culture, and creativity matter just as much. Consider offering benefits that don't break the bank but add real value, like flexible work arrangements, professional development opportunities, or wellness programs. And be transparent with your team about what you can offer and why. 

How do we communicate benefits effectively to employees? 

Clear, ongoing communication is key. Don't just send a benefits packet once a year and call it done. Use multiple channels—email, meetings, self-service portals, one-on-one sessions—to explain what's available, how to enroll, and how to get the most value. Make sure employees know who to contact with questions and that help is available when they need it.