4 Employee Benefits Your Small Business Should Offer

These could go a long way toward attracting and retaining talent.

The U.S. labor market is still going strong despite countless recession warnings. That's a good thing in theory, but it has created some hiring challenges for companies large and small.

Larger companies have a lot of resources to throw at the problem, so they can always attempt to lure workers in with the promise of high salaries and promotions. As a small business, you may not have the same leeway. As such, you may need to work on improving your benefits package if you want to attract talent.

Furthermore, the better your benefits package is, the more likely you are to retain the employees you've come to depend on and trust. So if you're not currently offering these key benefits, you may want to implement some changes.

1. Paid time off for sickness

The events of the past few years have made it clear that offering employees time off to recover from illnesses is essential. When workers don't feel pressured to come to work sick for fear of missing out on income, they'll be more apt to stay home and avoid spreading germs. It's that simple.

2. Paid time off for wellness/vacation

Clearly, it's important to give workers time to recover from illnesses, both for their own sake and for the sake of not spreading germs around, thereby taking out half of your staff. But it's also important to give workers time off so they can focus on their mental health and well-being, connect with their families, and just plain enjoy themselves from time to time.

That's why your small business should offer paid time off for vacation and leisure time that's separate from your sick leave policy. That way, your employees get the break they need.

Remember, people who don't take time off tend to fall victim to burnout. And that could impact their work performance. Offering a reasonable amount of paid time off could prevent that from happening.

3. Subsidized health insurance

Without subsidized health insurance, many people might have to go without it. But that means they'll risk facing catastrophic bills in the event of a hospital stay. You should aim to offer your employees a subsidized health plan so they're able to take care of themselves without incurring massive medical bills.

4. Retirement plan contributions

It's common for larger companies to offer a 401(k) plan and contribute matching funds. But 401(k)s can be prohibitively expensive for smaller operations due to the administrative fees involved. That doesn't mean you can't help your employees save for retirement, though.

One option you might consider is a SEP IRA, which is a special type of IRA designed for small businesses and the self-employed. SEP IRAs are funded by employers, not employees, but if you're able to offer even a modest contribution toward your workers' retirement, they're apt to appreciate it.

It's important to offer your employees a reasonable wage that reflects their efforts and skills. But it's just as important to provide your staff with a nice benefits package -- ideally, one that includes all of the items above.