If you run a small business and you're trying to decide what steps to take to attract and keep talent, don't assume more money will do the trick.

An Aflac survey of thousands of employees and compensation/benefits decision makers found that better benefits can be the deal maker. Said Aflac: "A majority of workers employed in small businesses are willing to consider a job with slightly lower pay but better benefits, while half of potential job-changers say improving their benefits package could keep them right where they are."

Aflac noted that workforce conditions — low unemployment and a rapidly surging economy — are putting many small employers in a talent bind. Based on its survey, more than a third of employers intend to hire new fulltime staff in the near term, and another 28 percent said they planned to add part-timers. With the pressure on to find the right people, Aflac wanted to know if benefits could be more persuasive than hard cash.

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What the survey found was that 59 percent of small business employees said they were "at least somewhat likely to accept a job with slightly lower pay but better benefits." Meantime, 49 percent of small-business employees who admitted they might be on the hunt for a new gig said "improving their benefits package is one thing their employers could do to keep them in their jobs."

The study took a deep dive on the importance of voluntary insurance as part of a benefits package offered by small businesses. (No big surprise there — Aflac is a major voluntary insurance vendor.)

Among the responses:

  • 87 percent of employees "at least somewhat agree" that voluntary insurance ought to be part of a comprehensive benefits program;

  • The percentage of small business employers offering voluntary insurance to employees this year rose to 22 percent from 18 percent in 2014;

  • Small business employees enrolled in voluntary benefits are more likely to be very or extremely satisfied with their jobs and their overall benefits packages as well as are more likely to believe the benefits package offered by their employer meets their family needs well.

"As competition for top employees heats up, employers know they need to ante up when it comes to compensation packages. It seems that health care benefits, both major medical and voluntary benefits, are prime areas to upgrade in order to lure and hold onto top talent," said Aflac Senior Vice President, Chief Human Resources Officer Matthew Owenby. 

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.