What is a benefits package?
A benefits package is the collection of non-wage compensation that an employer offers to employees in addition to their regular paycheck. It can include health insurance, retirement plans, paid time off, bonuses, wellness perks, and other job-related advantages that help support employee wellbeing and job satisfaction.
For small business owners, offering a competitive benefits package is a key strategy for attracting and retaining great employees—especially in industries like retail, food service, and hospitality where turnover can be high. With tools like Homebase, you can streamline HR processes, maintain compliance, and manage employee eligibility and communication—all in one place.
What’s typically included in a benefits package?
A benefits package can range from basic to robust depending on your business size, budget, and workforce needs. Common components include:
Health-related benefits
- Medical insurance (including dental and vision)
- Mental health support
- Health savings accounts (HSA) or flexible spending accounts (FSA)
- Life insurance and disability coverage
Financial benefits
- Retirement plans, such as 401(k) or SIMPLE IRA
- Employer matching contributions
- Performance bonuses or profit-sharing
- Commuter or transportation benefits
Time off
- Paid time off (PTO)
- Sick leave and family leave
- Paid holidays
- Parental leave
Lifestyle perks
- Flexible scheduling or remote work options
- Wellness programs
- Professional development or tuition reimbursement
- Employee discounts
Even if you can’t offer a full suite of benefits, providing a few meaningful options—like flexible shifts, paid sick time, or health stipends—can make a big impact on employee loyalty.
Why a benefits package matters to employers
1. Attracting top talent
Job seekers often compare roles not just by pay, but by benefits. A compelling package can help small businesses compete with larger companies when it comes to recruiting skilled workers.
2. Improving retention
Employees who feel supported in and out of the workplace are more likely to stay long-term. Benefits reduce burnout, boost morale, and demonstrate that the company values their team.
3. Enhancing productivity
Well-rested, financially secure, and healthy employees tend to perform better. When workers aren’t stressed about medical bills or missing work due to illness, they’re more focused and engaged.
4. Fulfilling legal obligations
Some benefits, like workers’ compensation insurance or sick leave, may be required by state or local law. Offering and managing a compliant package protects your business from penalties.
5. Building a stronger employer brand
Your benefits package is part of your public image. A thoughtful, inclusive offering shows that your business is people-first, making you more appealing to both customers and job seekers.
Customizing your benefits package for your team
The “right” benefits package will depend on your team’s demographics, preferences, and what your business can afford. To tailor your offering:
- Survey employees to understand what they value most
- Start small with scalable options like flexible scheduling or PTO
- Consider stipends for health or wellness if you can’t offer insurance yet
- Add value with training and development programs
- Explore local or industry-specific benefit programs that cater to small employers
Consistency and clear communication matter more than flashy extras. Offering even basic benefits well—and explaining them clearly—builds trust and loyalty.
Benefits package vs. compensation package
It’s common to hear these terms used together, but there’s a difference:
- Benefits package refers to non-cash perks (insurance, PTO, etc.)
- Compensation package includes wages, bonuses, and the benefits package combined
Employers should be transparent about both when hiring or promoting, so employees can evaluate the total value of their role.
How Homebase helps with benefits tracking and compliance
While Homebase doesn’t provide health insurance or retirement plans directly, it makes it easier for small businesses to administer benefits, stay compliant, and keep employees informed.
With Homebase, you can:
- Digitally collect and store employee onboarding forms
- Track time worked to monitor eligibility for benefits like PTO or health coverage
- Manage paid sick leave and time off accruals
- Keep HR documents secure and accessible in one platform
- Communicate with team members about changes in benefits policies
- Automatically sync scheduling and time tracking with payroll to reduce manual errors
Whether you're offering basic PTO or rolling out a full healthcare plan, Homebase helps you deliver a benefits experience that feels organized, professional, and people-first.
Explore Homebase HR & Compliance to streamline benefits administration, stay compliant with labor laws, and give your team the support they deserve.