Practice Management

 View Only


Quick Links

Who we are

The Practice Management Knowledge Community (PMKC) identifies and develops information on the business of architecture for use by the profession to maintain and improve the quality of the professional and business environment.  The PMKC initiates programs, provides content and serves as a resource to other knowledge communities, and acts as experts on AIA Institute programs and policies that pertain to a wide variety of business practices and trends.


The Importance of Employee Benefits for Small Business

By Rebecca W. Edmunds AIA posted 02-22-2024 07:44 PM


The Importance of Employee Benefits for Small Business

Contributed by The AIA Trust


For small-business owners, the importance of employee benefits is a significant factor when it comes to attracting and retaining talent. The majority of workers prefer attractive types of employee benefits—like insurance, paid time off, and a retirement plan—more than pay raises. Whether you’re competing for talent or keeping the high performers you already have, small-business employee benefits are essential for making your staff feel valued and supported.

To stay competitive through an economic downturn, it’s important to focus your limited resources on the types of employee benefits that matter most to your workers. Free food is a nice perk, but it’s low on the list of what actually influences an employee to join a company. Morale-building activities, like company retreats and outings, have no influence on people’s decisions to work for you. Instead, employees are most interested in benefits that provide protection and flexibility: insurance, time off, and work-from-home options. Insurance requires a significant financial investment for your small business, but of the many examples of employee benefits, it’s the most important.¹

Health insurance

Health insurance is the leading concern and need among prospective employees when they’re evaluating a job’s benefits—and it’s the most commonly offered benefit for that reason. Dental and vision insurance are also common benefits. Around 80% of companies offer some degree of employer-provided medical insurance. Employer- provided insurance is offered by a much lower percentage of small businesses that have less than 10 employees. The reason is the cost; employees typically pay between 10% and 20% of the premiums while the employer covers the rest.² It’s not easy to balance the types of employee benefits that could be offered to reward and retain top talent while ensuring that your business operates sustainably. If medical insurance is too great an expense for your company, you can look for other ways to reward your employees or can build the cost of medical insurance into your future business goals.

Around 80 % offer some degree of employer-provided medical insurance. “If medical insurance is too great an expense for your company, you can look for other ways to reward your employees or can build the cost of medical insurance into your future business goals.”

Life insurance

Life insurance is a less common employer-provided benefit than medical insurance—it’s offered by roughly half of companies—but it’s valued highly by employees. Sixty percent of employees report that life insurance matters to them, so there are many more people who want this benefit than are able to access it.² And life insurance is more than just an attractive offering that employees want—it’s a promise to shield and protect your staff and their loved ones. Like medical coverage, life insurance serves both a practical and symbolic function by showing employees that you want to take care of them and are actually doing it. There are different options available to small businesses looking to take advantage of this benefit’s popularity, and a financial professional can walk you through them.

As with life insurance coverage, there’s a significant gap between employees who want long-term disability insurance and the number of companies that actually offer this type of employee benefit. This is another opportunity for small-business owners to attract top talent and really stand out with what they offer and how they support employees. Short- term disability insurance is slightly more commonly offered by companies, but there’s no limitation that keeps you from providing both types of coverage.

AIA Trust resources

No matter the size of your business, the AIA Trust may have the products to help you provide important benefits to your small firm. Visit the AIA Trust at and available exclusively to AIA members for more information including cost, coverage features, eligibility, renewability, exclusions, and limitations or call the AIA Trust plan Administrator at 1-877-801-3727 and one of their professionals can help guide you in structuring a benefits package that attracts and helps you keep your high performers.

The Group Term Life, Level Term Life, and Group Disability Insurance is underwritten by New York Life Insurance Company NY, NY 10010 on Policy Form GMR.

CA Insurance License # 0H62489; AR Insurance License # 94726


*In 2021 New York Life analyzed premiums for up to 31 different carriers in the markets for Annual Renewable Term (ART) and 10-Year Level Term (10YLT) . Premiums were compared using gender, age, face amounts, and rating classes. Any premium credit was applied to the Association results; had the credits not been applied the results would have differed. We interpreted “competitive” results as those in which premiums were equal to or better than more than half the cells analyzed for the given products.







The AIA Trust offers a portfolio of risk management solutions and resources designed to help AIA members grow and prosper. Established in 1952, the AIA Trust works with independent consultants to evaluate, select, and monitor insurance and benefit programs for AIA members and components, and that meet the institute’s high standards of quality, value, financial stability, service, and coverage, adhering to strict criteria.


(Return to the cover of the February 2024 PM Digest)