Tech Startups and Employee Benefits—What You Should Know
Tech startups often begin as a collaboration between founders and other passionate, invested partners. As the startup expands, it’s inevitable that the workforce will grow too. That means it’s never too early to start considering the benefits package you’ll offer your employees. But how do you choose what type of employee benefits and healthcare to invest in, and who can help?
Why Benefits Matter
Firstly, let’s clarify why startups need to prioritize attractive benefits packages:
You want to attract the best talent to help your business grow
You want to be known as a company with values
You want to treat your existing employees well enough that they don’t get tempted away by competitors
A good salary isn’t always enough. According to Forbes, 40% of employees leave roles to find better benefits elsewhere. These might include a great work-life balance, help with mental health concerns, paid time off work, and, of course, healthcare.
Letting Employees Choose
Health insurance plans and health reimbursement arrangements (HRAs) come in all shapes and sizes. Traditional group healthcare plans tend to offer limited options for employees in terms of who they can speak to and the type of specialists they can be referred to.
ICHRAs or individual coverage HRAs are another option that allows employers to provide workers with tax-free funds to choose their own health cover. Tech startups should consider all the options but always keep employees at the center of choices. While some basic employee benefits plans might seem like a cost-saving in the short term, investing in people is always the smart choice.
Companies Helping Startups Protect Their People
Healthcare benefits can be complex, but there are firms out there dedicated to making it simple, particularly for smaller businesses that are just starting out.
Venteur, for example, has a dedicated program for startups, helping them set up their benefits packages from scratch. They empower businesses to provide bespoke benefits packages that will attract top talent and position their company as a great place to work. B2B buyers purchase from companies with values that align with their own, so being transparent about how you’re proud to invest in your employees’ wellbeing is a smart choice.
Final Word
Of course, healthcare isn’t the only benefit you need to consider. How will you manage time off for vacation? Will you provide additional services to promote mental wellness in the workplace? Partnering with the right benefits providers early on can prevent employee churn and dissatisfaction and position your firm for more consistent growth.
If you’d like to discover more ways to support your startup’s growth, book a 15-minute introductory call with the team here at Arch Collective and let’s talk.
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