Common Employee Benefits for Startups

Employees are the backbone of any organization. In the startup space, employees are even more important. In a startup, the founder ignites a vision, but it’s the employees who contribute effectively towards achieving the goals. Thus, the employer must invest time, money, and effort in hiring and retaining the talent.

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*Tax benefit is subject to changes in tax laws. *Standard T&C Apply

** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

Why are Employee Benefits Important in a Startup?

Even before you have started hiring a team for your startup, it is important to have an employee benefits program in place. If you are already in business, a good employee benefits program can make you competitive in the industry. Some of the advantages of employee benefits for startups include:

- Attracting new talent

- Improving the employee experience

- Retaining existing talent

- Increasing engagement

Employee Benefits for Startups

A startup may face several challenges. The goal is to attract both top talent and retain your existing employees. A competitive total compensation package helps you achieve that.

A comprehensive employee benefits package would typically include health and fringe benefits. Some of the common employee benefits for startups are:

Comprehensive Health Insurance

Medical costs are on the rise with each passing year. Offering a comprehensive corporate health policy can help them cover financially during medical emergencies. A group health policy is one of the most basic employee benefits offered by any startup. The employer may also extend the coverage to the employee’s dependents.

Employees these days expect more than just a standard group insurance policy. Overall wellbeing is given more importance, both by the employee and many employers in the market. A comprehensive group health insurance plan thus includes fitness and mental wellness programs, telehealth features, yoga and meditation sessions, rewards, and more.

Other Employee Group Insurance

Apart from typical group health insurance, a startup may also invest in other employee insurance schemes depending on the type of business. For example, a startup dealing with delivery and logistics business may invest in group personal accident insurance. Also, group term life insurance has become popular in recent years.

Paid Leaves

Employee benefits in startups include one important aspect - leave policy. A startup’s leave policy ensures that an employee balances his professional and personal life well. This ensures work satisfaction, better productivity, and performance.

Parental leaves like maternity and paternity leaves should also be focused on. Larger companies can offer more time off to their employees than smaller companies. In any case, paid leaves are always welcomed.

Flexible Working

In the era where work-from-home, hybrid working, and flexible working are the norm, if a startup fails to offer these to its employees, it is missing a vital part of its employee benefits program. Offering these provisions help employees juggle their responsibilities better without compromising the quality of work.

Training and development

Employees would want the opportunity to grow professionally. Many startups provide training and development programs that help in upskilling their workforce. These programs usually cover the cost and give them flexibility at work.

This may include assisting employees to continue with their academics, learning and brushing up on skills required at their job or a mentorship program. Such opportunities can help retain employees and attract fresh talent.

Conclusion

Employee benefits for startups can be best designed when employees are involved. Thus, it is essential to learn which employee benefits add value to the employee benefits program and improve their overall experience. As a startup grows, the employee benefits program undergoes changes and grows along with the business.

Written By: PolicyBazaar - Updated: 15 October 2022