b'Retirement plans In today\'s economic and political environment, most adults view retirement planning as a high financial Designing a Benefit Packagepriority. That\'s why it\'s important to include a for Your Small Businessretirement savings option in your benefit package. There are several options available to small employers, including traditional 401(k) plans, SIMPLE savings plans, and SEP-IRAs. A financial professional can help you choose the plan that\'s right for your company\'s needs. Tracy L. Edwards, CFP Other options If you\'re a small business owner, you face manyOther traditional benefits include the following challenges in growing your company. One of them isgroup insurance policies: recruiting and retaining the best talent for your needs. Life insurance: These policies generallyWhen your primary goals are managing costs andprovide employees\' survivors a death benefit in a setincreasing revenue, how do you sufficiently entice newamount or an amount based on salary (e.g., two timesrecruits and reward current staff members forsalary).continually putting their best efforts forward? One way is ensuring that you provide a competitive, Disability insurance: These plans providecost-effective benefit package comprised of bothemployees with an income stream should theytraditional and not-so-traditional benefits.become disabled. Benefit amounts are typically aTraditional benefitspercentage of salary.In order to remain competitive, nearly all employers Vision and dental coverage: These plans tendshould offer some form of health insurance andto be highly valued by employees, as the costsretirement savings plan. Yet according to the U.S.associated with dental and vision treatments, whichDepartment of Labor, only 54% of small employersare generally not covered by health insurance, can be(private companies with fewer than 100 employees)quite high.offer health coverage and just 49% offer a retirementNot-so-traditional perks plan.In addition to traditional benefits, there are several Health insurancenot-so-traditional perks you can offer to help set your Small businesses can typically choose among traditionalorganization apart in the competition for talent. plans or managed care/health maintenance organizationsWellness programs (HMOs). Traditional plans are typically more expensiveSome employers offer workplace-based wellness but tend to provide more access to providers. HMOsprograms. Wellness programs help improve overall generally carry lower costs but have fewer options foremployee engagement and encourage individuals to care providers. Some small employers opt for a high- take responsibility for their own well-being. deductible health plan. (HDHP) along with a healthAccording to the Kaiser Family Foundation, 50% of savings account (HSA). In an HDHP, employees carry asmall employers offer at least one of the following higher burden for up-front costs, but the HSA allowsthree types of wellness programs: smoking cessation, them to set aside money on a tax-advantaged basis toweight management, and behavioral or lifestyle help defray these costs.coaching. Forty-two percent of small firms offer a Note that a provision in the Affordable Care Acthealth risk assessment, biometric screening, or both requires employers with 50 or more full-time employeesscreening programs. Some of these firms offer (as defined by the Act) to offer adequate healthincentives to encourage participation. insurance that\'s affordable or face a possible penalty.Flexible work arrangements "Adequate" means that the company\'s share of total plan costs must equal at least 60%. Coverage is "affordable"In today\'s hectic world, time is nearly as valuable as if an employee\'s share of the premium is less thanmoney. A company that values the work-life balance 9.56% of his/her household income. Employers withof its employees is nearly as highly valued as one fewer than 25 full-time employees may also be eligiblethat offers the best insurance or retirement plan. For for a credit to help them pay for health insurance;this reason, one of the most popular and appreciated certain conditions apply.employee benefits available today is a flexible work (continued to page 8) 6'