5 Common Misconceptions Startups Have About Employee Benefits
Startups often assume that being small means settling for less when it comes to benefits. In reality, they’re usually surprised by how competitive, affordable, and scalable their options can be.
Myth #1: “We can’t offer Microsoft-level benefits.”
Fact: You may be surprised by how close you can get.
Startups can often offer benefits that are highly comparable to much larger employers, including low-deductible medical plans with national network coverage, low employee contributions, mental health support, funding accounts, dental, vision, life, disability, and more.
You don’t need Microsoft’s headcount to offer benefits that feel like Microsoft-level benefits.
Myth #2: “Great benefits are way too expensive.”
Fact: Our startup clients often experience reverse sticker shock.
Many founders are surprised by what competitive benefits actually cost for a small employer. We have strong experience and leverage in the startup benefits market, and venture funding and anticipated growth can sometimes help from an underwriting perspective as well.
The result: competitive benefits may be much more attainable than you think.
Myth #3: “We’re too small to get good service from a broker.”
Fact: At many firms, that may be true. At Ellingson Group, it isn’t.
Many brokerages scale service based on client size. We don’t.
Our service model is the same whether a client has 2 employees or 500, including dedicated benefits advocates, benefits strategy, benchmarking, proactive compliance support, claims analysis, integrated technology, ERISA attorneys, and much more.
Myth #4: “Benefits are just an expense.”
Fact: Good benefits can produce real return on investment.
Benefits are part of an employee’s total compensation package and can play an important role in recruiting, retention, employee satisfaction, and even employee productivity.
The goal isn’t simply to spend more. It’s to make sure your benefits dollars are being used strategically on benefits employees value and the company can sustain.
Myth #5: “We should wait until we’re bigger before investing in benefits.”
Fact: Benefits can help you become bigger.
Competitive benefits can help startups attract and retain talent while keeping employees happy and productive and creating a stronger foundation for growth.
We also help build a streamlined, integrated administration process between benefits, payroll, HRIS, and enrollment systems so benefits are easy to manage as you scale.
Your benefits program should grow with your company, not become another operational headache.
You focus on growth. We'll focus on benefits.
You don’t need thousands of employees to offer a benefits program that competes with companies that do. You need the right strategy, market leverage, and a broker who understands startups. Ellingson Group helps growing companies build competitive benefits programs that are easier to manage and built to scale.