Employee Benefits as a Strategic Move for Small Businesses
For businesses of all sizes, the ability to attract and retain top talent is crucial, especially for small businesses that often face more pronounced challenges in competing with larger companies for skilled employees. By strategically investing in employee benefits, small businesses can enhance their appeal to potential hires and address key people risks that can impact business outcomes.
Understanding people risk
Aon's recent Global Risk Management Survey highlights "Failure to Attract or Retain Top Talent" as the 4th biggest global risk facing organisations today. This underscores the importance of creating a supportive environment where employees feel valued and secure. Anson Davies, Health Leader at Aon in New Zealand, emphasises, "Investing in employee benefits is investing in the future of your business. It's about creating a workplace where people want to stay and grow."
Navigating rising medical costs
In addition to the challenge of retaining top talent, small businesses must also navigate the rising costs of healthcare. Aon's 2025 Global Medical Trend Rates Report reveals that medical costs in New Zealand have increased significantly, placing the country among those with the highest medical inflation rates in the Asia-Pacific region and worldwide. By offering health benefits, small businesses provide an attractive advantage that helps ensure employees can access necessary medical care—something that many individuals may find difficult to afford on their own. Davies notes, "Providing health benefits is a strategic decision that supports employees' well-being and enhances the overall appeal of the workplace."
Scalable solutions for small business
Balancing budget constraints with the need to offer competitive benefits is a challenge that many businesses face. However, scalable benefits tailored to the specific needs of the team and the business’s financial capacity can provide a solution. Collaborating with providers who understand the unique challenges faced by small businesses allows the design of a benefits package that evolves alongside the company. This approach ensures that the business remains competitive while managing its resources effectively.
Differentiating in a competitive market
Offering robust employee benefits is a powerful differentiator in today's employment market. It signals to potential hires that your company values its employees and is committed to supporting their personal and professional lives. Davies asserts, "In a competitive market, the companies that stand out are those that prioritise their employees' well-being and future."
Future trends in employee benefits
As the workforce evolves, so do the expectations surrounding employee benefits. Employees increasingly expect benefits that cater to their individual needs and lifestyles. This trend towards personalisation means that businesses should consider offering flexible benefits packages that allow employees to choose options that best suit their circumstances.
Integrating life, health, and benefits packages into your business strategy is a proactive approach to managing people risks and fostering a thriving workplace. Investing in your employees positions your business as a leader in employee care and paves the way for long-term success.
At Aon, we believe taking care of your people’s health, with purpose, is taking care of your business.
Talk to Anson today to find out how your business can benefit from an employee benefits plan tailored to your unique needs.
Related Articles
The Crucial Role of Life Insurance for a Small New Zealand Business
How Cyber Insurance Saved This Small Business
Underinsurance: A Silent Threat to Your Business That You Can’t Afford to Ignore.