In today's competitive job market, small business owners understand that their employees are their most valuable asset.

To attract and retain top talent, it's essential to go beyond competitive salaries and offer comprehensive employee benefits packages that meet diverse workforce needs.

Identifying and addressing gaps in employee benefits is crucial for creating an engaged and satisfied workforce. Well-rounded benefits packages often lead to improved employee well-being, higher retention rates, and a positive work culture.

However, identifying gaps in benefits offerings can be complex, requiring a careful assessment of employee preferences, trends, and organizational resources. To help you navigate this process, here are some strategies to identify and address these gaps:

1. Evaluate Current Benefits

Review your existing employee benefits package. Assess whether you offer the basics and if there are any unique benefits that will set you apart from competitors or other employers in your industry. Also, take the time to review current benefits utilization to understand if there are any benefits that employees do not use.

2. Understand Employee Demographics and Needs

Demographics, such as age, gender, and marital status, can influence employees’ preferred benefits. These needs can change over time, so it is important to evaluate on a regular basis and offer personalized employee benefits for a multigenerational workforce.

3. Collect Employee Feedback

Surveys and focus groups are great ways to gather information and opinions directly from employees. When collecting feedback from your employees, it is important to ask about their satisfaction with existing benefits, what they value most, and if there are any benefits they feel are missing or could be improved. Discover what benefits employees value most from their employer in our Employee Value Study.

4. Benchmark Against Industry Standards

Research industry standards and best practices to understand what benefits competitors and similar or local organizations provide. This can help you identify any gaps in your offerings compared to competitors so that you can continuously evolve your benefits package to meet the needs of today’s workforce.

5. Stay Informed on Emerging Trends

Stay informed on employee benefits trends. Current trends include offerings such as flexible work arrangements and mental health support. During this process, it is important to consider employee feedback and their preferred benefits.

6. Prioritize Based on Budget and Resources

While you may have a long list of benefits your employees want or need, it's important to consider your organization's finances and resources to determine what benefits offerings are possible to maximize your investments. Prioritize the benefits that would have the most significant impact on employee satisfaction and overall well-being.

7. Communicate Changes Clearly

Ensure clear and effective communication with employees when introducing or modifying benefits. Education is critical, so clearly describe any changes, provide a rationale, and explain how benefits changes align with employee feedback, emerging trends, or organizational goals. Preparing for open enrollment in advance with a strong communication plan will benefit you, your employees, and your business.

8. Monitor and Reassess Regularly

Benefits needs and preferences change over time, so it’s important to monitor the utilization and effectiveness of offerings regularly. If significant changes were made, ask employees for feedback. Make sure to keep the conversation around benefits going to ensure you stay updated on their preferred benefits and reassess available options to ensure you are always meeting their evolving needs.

The Power of Proactive Employee Benefits Management

You’ve invested in your people—every benefit, every paycheck, every program—but how do you know it’s paying off? Small business owners must continually evaluate their existing benefits, gather employee feedback, and strategically address any gaps in order to ensure their investments are paying off. By periodically reassessing benefits offerings, you can ensure you remain competitive in the labor market and meet the evolving needs of your workforce.

In an economy where every dollar counts and so does every decision, small businesses can’t afford to guess. A OneDigital Small Business Solutions expert can bring visibility and actionable insights into how your employee benefits are driving retention, engagement, and performance; giving you the confidence to know exactly what’s working so you can double down on what matters most. With the visibility to know your investments are working, you’ll move forward with confidence, building a business where your people thrive and your bottom line grows.

Ready to remove the gap and take the next step in enhancing your benefits strategy? Contact our workforce consultants to discover what a fierce advocate can do for you.