Health insurance and retirement plans are great, but they’re not the only ways to win over your employees. And unless your small business has a secret vault of cash, lavish bonuses and company-sponsored tropical vacations probably aren’t happening anytime soon.
But sometimes, the perks employees appreciate most are the ones that make everyday life a little easier.
Why you should think outside the benefits box
Employee benefits are getting more creative. According to SHRM’s 2026 Employee Benefits Survey, 27% of surveyed employers offered pet insurance, up from 22% in 2025. Meanwhile, 25% offered off-site fitness reimbursements, compared to 20% the year before.
For small businesses, nontraditional benefits can be a way to stand out without trying to outspend larger competitors. They also show employees that you recognize they have lives, responsibilities, and expenses outside of work.
But here’s what you need to keep in mind. A perk is only valuable if your employees actually want it. Free gym memberships aren’t exactly appealing to someone whose idea of cardio is running late.
Forget the corporate gyms and extravagant bonuses. Some of the perks employees appreciate most might surprise you.
Get more articles like this straight to your inbox 
Free as a meme, easy to bail anytime.
Employee perks that go beyond the basics
Ready to give your benefits package a little personality? These affordable employee benefits are a little more realistic:
- Pet insurance: One emergency vet visit can wipe out the family vacation fund. Help employees prepare for unexpected veterinary bills by offering access to group pet insurance, potentially at discounted rates. Employees can pay their own premiums, or you can contribute if your budget can handle it.
- Fitness memberships: Partner with a local gym, offer discounted access to fitness platforms, or reimburse part of employees’ membership costs.
- Internet and technology stipends: The company video call shouldn’t depend on whether someone’s teenager is downloading a 90 GB video game. Help remote employees cover work-related internet service, equipment, and other expenses.
- Professional development: Cover relevant courses, certifications, conferences, or online training. Employees can gain new skills, and your business benefits from what they learn.
- Commuter benefits: Help employees pay for eligible parking or public transportation expenses. Qualifying programs may allow employees to use pretax payroll dollars.
- Student loan assistance: A qualifying educational assistance program can help employees tackle student debt. For 2026, employers can provide up to $5,250 in combined tax-free educational assistance, subject to program requirements.
- Other extras: Flexible schedules, employee discounts, team lunches, and additional paid time off can all make a difference. Sometimes, being able to leave early for an appointment beats another company-branded water bottle.
A quick word about taxes
Not every perk gets the same tax treatment. Gym reimbursements and employer-paid pet insurance are usually taxable, while certain commuter benefits, educational assistance, and properly documented expense reimbursements may qualify for tax-free treatment.
Check the IRS rules or talk to a tax professional before adding new perks to the payroll. The last thing you want is for your new perk to come with a letter from the IRS.
Before you roll out a new perk, ask your employees what they actually want. You might discover they’d rather have flexible Fridays than discounted yoga classes. And that’s probably information worth having before you sign a 12-month gym contract.
