56% of Small Companies Plan to Spend Extra Compensating Staff in 2021, Finds New Survey from Clutch
WASHINGTON, February 25, 2021 / PRNewswire / – More than half of small businesses (56%) plan to spend more compensation on their employees in 2021 than last year, according to a new report from Clutch, the leading B2B research and review company.
Clutch surveyed small business owners and managers in 2019 and 2021 to find out what compensation and benefits they offer their employees. The data show increased demand for health services, paid time off, and flexible work schedules.
According to Clutch, 56% of small businesses expect the cost of employee compensation to increase in 2021.
Small business plan to offer a range of new benefits in 2021.
Experts say that benefits and a compensation plan are essential for any business.
“I think it’s just standardized practice,” said Matthew Burr, Founder and President of Burr Consulting, a recruiting firm. “Vacation, PTO … all that stuff is expected in our society now. You won’t be able to recruit and retain people, though [you don’t offer basic benefits]. It won’t work in your favor. “
To decide which specific benefits and how to offer them, companies evaluate their own people and business needs.
Health Benefits Important in 2021
45 percent of small businesses (45 percent) offer health benefits to their employees. Health services are the most common services offered.
Ted LiuThe founder and CEO of Just SEO, a search engine optimization company, states that there are two reasons why providing healthcare services is a popular compensation strategy:
- The health benefits show commitment to an employee
- The health benefits reassure employees and improve worker productivity
Experts say that right now it is particularly important to get involved with employees and give them the structure and stability to be productive.
“The health benefits have never been more critical than amid a pandemic,” he said Courtney Quigley, a corporate reputation consultant for Rize Reviews, an online reputation management company. “This pandemic brought with it fears and fears that were changing the way people work, eat, buy and live.”
The provision of health benefits is a compensation strategy that can help employees feel financially and personally secure, which remains a priority even after COVID-19.
Family vacations and flexible working hours are important when working remotely
The two benefits businesses are most likely to experience for the first time are family vacations (14%) and flexible hours (13%).
The COVID-19 pandemic has challenged the work-life balance of employees and made it difficult to avoid burnout.
“”[Companies] need to make sure that people are disconnecting from the technology and not being burned out by working 24/7, “he said Matthew Burr, Founder and President of Burr Consulting, a recruiting firm.
With family vacations, a new parent knows they can keep their job while still taking time to care for a newborn. A flexible work schedule enables an employee with childcare responsibility to plan their remote work around virtual school hours.
Read the full report here: https://clutch.co/hr/recruiting/resources/small-business-employee-benefits
If you have any questions about the survey or comments on the result, please contact Seamus Roddy at the [email protected].
About clutch
Clutch, the leading B2B research, evaluation and evaluation company, connects small and medium-sized businesses with the most appropriate agency, software or consultant they need to tackle business challenges together and with confidence. Clutch’s methodology compares business service providers and software in a given market based on verified customer reviews, services offered, quality of work and market presence.
Contact
Seamus Roddy
202.350.4344
[email protected]
SOURCE coupling
