Small business, big value: How to offer great benefits without breaking the bank

Date posted - Sep 09, 2025

Attracting and keeping the right people is key to your success—but competing with large companies can be a challenge when it comes to salaries and perks. The good news? You don’t need a big-company budget to offer competitive benefits.

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As a small business owner, you know your team is everything. Attracting and keeping the right people is key to your success – but competing with large companies can be a challenge when it comes to salaries and perks.

The good news? You don’t need a big-company budget to offer competitive benefits.

With the right plan, you can create a thoughtful, cost-effective benefits package that helps you attract top talent, retain great people, and support a healthy, loyal team.

Why benefits matter – especially for small businesses

While salary will always matter, today’s employees are looking for more than just a paycheque. They want:

  • Health and dental coverage
  • Mental health support
  • Financial wellness tools
  • Flexibility and long-term stability
     

A strong benefits plan signals that you value your team—not just as workers, but as people. And that goes a long way in recruitment and retention.

The best part? Even simple plans can have a big impact when they’re well-designed.

1. Start with the essentials

You don’t need to offer every benefit under the sun. Start with what employees value most – and what gives you the most impact for your investment.

Health and dental insurance

This is one of the most requested benefits, especially for employees with families. A basic plan typically includes:

  • Prescription drug coverage
  • Dental care
  • Vision care
  • Paramedical services (massage, physio, etc.)
     

You can choose a level of coverage that fits your business today and scale it as your team grows. Even a modest plan shows your commitment to employee well-being.

Life and disability insurance

These benefits give employees financial protection in case something unexpected happens. Many group plans include:

  • Term life insurance
  • Accidental death and dismemberment (AD&D)
  • Short- or long-term disability coverage
     

These benefits offer financial stability and confidence for your employees—without putting too much pressure on your budget.

2. Consider a Health Spending Account (HSA)

Health Spending Accounts (HSAs) are a flexible alternative to traditional insurance – and a great fit for small businesses.

Here’s how they work:

  • You set an annual allowance for each employee (e.g. $1,000/year)
  • Employees use it on eligible medical and dental expenses
  • You only pay for what gets used – not for monthly premiums or unused benefits
     

It’s a smart way to offer real value while maintaining cost control and flexibility.

3. Offer optional or voluntary benefits

Want to expand your offering without adding extra costs? Add voluntary benefits to your plan.

These are benefits employees can choose to buy – often at a discounted group rate – with no cost to your business. Examples include:

  • Critical illness insurance
  • Additional life or disability coverage
  • Travel insurance
  • Health and wellness programs
     

They give your team more choice and support—without adding to your core benefits budget.

4. Make it personal

Small businesses have a unique advantage: you actually know your people.

That makes it easier to create benefits that reflect what your team truly wants. Ask your employees:

  • What benefits matter most to them?
  • Are there gaps in the current plan?
  • Would flexibility or add-on options be more useful?
     

You’ll end up with a plan that fits better, gets used more often, and delivers stronger long-term value.

5. Keep it simple – and scalable

Don’t overcomplicate it. The best benefits plans are:

  • Easy for employees to understand and use
  • Easy for you to administer
  • Designed to grow as your business grows
     

Start with a strong foundation—like core health and life coverage—and build on it over time.

6. Work with a broker who understands small businesses

You don’t have to figure this out alone. We’re here to help. We specialize in helping small and growing businesses build benefits packages that make sense – both for their people and their bottom line.

We’ll help you:

  • Compare plans across multiple providers
  • Understand where to invest and where to simplify
  • Design a plan that fits your team’s needs and your business goals
  • Adjust your plan over time as your needs evolve
     

And as independent brokers, we’re not tied to any one insurance company – so you always get choice, flexibility and advice that puts your interests first.

Bonus tip: Benefits can be a tax-efficient way to support your team

Offering benefits can be more tax-efficient than giving raises, since many health and insurance benefits are non-taxable to employees.

That means more value for your team, and better budget management for you. It’s a win-win.

The takeaway

A well-designed benefits package is a smart investment—no matter the size of your business.

With the right plan, you can:

  • Offer health and protection benefits your team actually values
  • Stand out in a competitive hiring market
  • Build loyalty and improve retention
  • Do it all while staying in control of your costs
     

Whether you’re hiring your first employee or refining a growing team’s coverage, we’re here to help you build a benefits package that’s simple, strategic, and sustainable.

Ready to build a benefits plan that works for your business?
Let’s create something that supports your team—and grows with you.