It comes with the territory of being a savvy business owner: Every time you turn around, a question related to employee benefits seems to pop up—and no benefit is as important to personnel and management as health insurance. As the employer, you owe plenty to your staffers, but just as much to the company’s bottom line, which is why it's wise to consider all aspects of offering health insurance to your employees.
How can you be sure you’re ready to start offering benefits to your employees? As a small business (defined as less than 50 employees) you aren’t required to offer health benefits to your staff, but it may be beneficial to do so. If you’re getting near 50 employees and foresee continued growth that will put your staff count above that number soon, it’s a good idea to start planning and considering your options to avoid any tax penalties under employer mandate rules.
While signing up for employee health benefits may seem expensive and daunting, you may soon find out that it’s not as expensive as initially anticipated, and offering benefits can actually help you save money and generate more money in the long run.
It’s recommended to take a comprehensive approach to the subject of health insurance acquisition by considering everything that impacts this expenditure, from understanding how important coverage can be to recruiting the best talent to retaining personnel already loyal to the company. These 20 points are some of the reasons you’ll want to consider offering your employees health benefits.
1. A Simple Process
Offering health insurance can be a very uncomplicated process if you find the right advisor or broker to package a plan for your firm. Importantly, financial honesty is the most dynamic contribution you can make toward this goal when you work with a professional to put coverage parameters in place.
2. Happier Employees
Health benefits keep people in your employ happier, concludes a Glassdoor survey. Coverage can be the single most important reason talented people decide to work for you, and who doesn't want to employ happy people?
3. Tax Benefits
You get tax benefits and so can employees, depending upon how a plan is configured. Coverage that allows staffers to use pre-tax dollars has the potential to save them between 30- and 40-percent on premiums. You can mention this when you interview job candidates.
4. Better Health Resources
Better networked doctors and hospitals may be more available to employees when their company offers health benefits, a fact not lost on folks who have experienced health resource limitations with former employers.
5. Increased Workplace Productivity
Benefits boost productivity. Research has shown that offering coverage is not just practical but logical. Personnel worried about medical issues are directly linked to productivity and time loss, and what company can afford to put up with either?
6. Attracting Talent
You won’t find a better recruitment tool. A robust benefits package is fast becoming a major factor in choosing a job for everyone from management to warehouse workers. Comparing health coverage benefits while job hunting has become as important as salary comparisons these days.
7. Benefits Beyond Your Company
Health coverage has the potential to reverberate far beyond your place of employment. According to the Small Business Administration (SBA), contributions made by both company and employees tend to stabilize health costs so insurers have more resources from which to draw when employees file claims.
8. Improved Reputation
Firms offering health benefits stand out from industry competitors, thus company reputation comes into play when health coverage is offered. Appearances count. Showing that you prioritize employee well being by offering health insurance can enhance your company profile and reputation.
9. More Loyal Employees
Can you buy loyalty? Scholarly studies conducted by human resources departments show that there is a correlation between offering staffers health coverage and the amount of loyalty they exhibit, even in today's fast-paced work environments.
10. Fewer Expenses Going Towards Raises
A 2015 Glass Door survey concluded that nearly 4 in 5 employees would choose benefits over a pay raise, so for companies eager to streamline costs associated with raises, the addition of medical coverage could offset some cost of providing this benefit.
11. Decreased Turnover
Can you put a price on turnover? In fact, you can. Research shows that the cost of losing a single employee can “can range from tens of thousands of dollars to 1.5-2X annual salary,” according to Global Industry Analyst Josh Bersin.
12. Improved Job Satisfaction
Health coverage has been proven to boost job satisfaction when workers are provided some type of health coverage. Job satisfaction can manifest in unexpected ways by generating enthusiasm, enhancing teamwork and inspiring employees to undertake more training and education so they become more valuable.
13. Reduced Absenteeism
A study by the Journal of Occupational and Environmental Medicine concluded that health coverage reduces workplace absenteeism, so your company doesn't burden those who do show up with extra work or force you to hire temporary workers.
14. Faster Recovery Times
Providing health insurance may contribute to faster recovery times in sick employees because they are more likely to seek professional care when they have access to clinics, doctors and hospitals.
15. A Health-Minded Culture
Providing health coverage fosters a healthy company culture. Healthy employees are more likely to bolster and advocate on behalf of their employers success, which in turn can contribute to the long range stability of a business.
16. Healthier Employee Habits
Employees with health coverage pay more attention to the pursuit of wellness once they get coverage. Improvements may be the result of adopting healthier eating habits or enrolling in gym programs included within the coverage menu associated with some types of policies.
17. Better Online Ratings
By understanding the value of offering health benefits, employers are likely to achieve higher ratings on websites that rank job satisfaction numbers by past, current and future employees. Conversely, negative ratings can impact everything from the number of job applicants a company interviews to industry recognition.
18. The Benefits Outweigh the Risks
Employers tend to be more favorably disposed to health benefits when they undertake cost/risk/benefit analyses or commission them to be undertaken. Taking this step makes sense for firms reticent to add benefits without seeing the true value of medical coverage to a company's bottom line.
19. An Investment Towards What Matters Most
Adding health insurance for employees to a company benefits menu in San Marcos, Tx reflects a commitment by company administrators, managers and officers that they are willing to invest in employees where it counts most: their health and wellbeing.
20. Employee Pride
Your employees will be proud to work for you. Heartfelt letters to management from workers who were able to get diagnoses related to catastrophic diseases they would not have learned about had they not gotten coverage will be grateful that you decided to say yes to adding this to your company benefit package.
As you can see, there are plenty of great reasons to offer group health insurance for your employees in Kyle, TX, no matter how big or small your company may be. Not only can you help your employees in a major way, you can also attract new talent and stand out from the crowd, reduce turnover, boost company morale, help sick employees get better faster so they can resume working, and save money on taxes.
If you’re thinking about offering employee benefits at your small business in Central Texas but aren’t sure if you’re ready, or if you have any questions, contact 19:21 Consultants today to discuss your current situation. We’ll work with you as your New Braunfels Group Benefits Consultant to decide if employee benefits are right for you company, and help craft a custom plan to ensure you can offer benefits within a budget that you and your staff can afford.