Working with small business owners, I get asked this question a lot. It seems like money is always tight and you don’t want to spend any money that’s not absolutely necessary or that doesn’t lead to growth. However, offering employees a competitive benefits package could actually be a growth explosion for your small business! These packages usually include retirement plans, life insurance, and group health insurance. I’d like to focus on group health insurance for this blog. Here are some of the benefits:
1. Saves you money on Taxes
One of the best parts about offering a group health insurance plan is that it’s tax deductible! That means the amount the business contributes towards their employees’ share of the cost lowers your company’s tax liability and its taxable income. Taxes can always get a little complicated, so work with your accountant or tax preparer to know just how much your company can save. Additionally, there are plans available with direct cost savings for you, the employer. One example is level funded health insurance plan. This is a type of health plan designed for groups that are healthy. At the time of renewal, it allows a portion of the unused claims to be returned to the employer depending on the carrier.
2. Gives you access to more doctors and hospitals
Group health plans give you more bang for your buck. It allows you to get a bigger network for a lower price. Most doctors and facilities readily take commercial insurance plans versus Marketplace (ObamaCare) plans. If you or your employees have used Marketplace plans, you know they can be limited as far as network. Choosing a group health insurance will give you and your team more access to hospitals and specialists, including a reduced rate for ancillary plans such as dental and vision.
3. Helps employees remain healthy and productive
According to The Centers for Disease Control and Prevention, productivity losses linked to absenteeism cost employers $225.8 billion annually in the United States. That equals to $1,685 per employee! Keeping employees healthy and giving them the tools to do so, increases your company’s productivity.
4. Attracts and keeps great employees
Finding and retaining great employees at times seems like finding and keeping a unicorn. However, there are key things great employees look for in an employer. A benefits package is one of them, citing health insurance as the most important benefit they’re searching for. Dedicated and qualified workers will usually choose the job that provides them health insurance over one that does not. Some employees are even willing to take a reduced salary in lieu of receiving health insurance. For your current employees, another position with the promise of benefits could be too tempting to pass up. Employee turnover is costly, a morale buster, and a downright time waster. Let a group health plan attract and keep great team members.
5. Promotes a healthy work culture
After living through a pandemic, all small business owners are viewing the topic of a healthy workforce in a different light. Many studies have shown that healthy employees are happier, increase your company’s productivity, and are more likely to remain at your business. According to Allwork, 45% of employees have considered leaving a job due to stress it has created and 49% do not think their manager would know what to do if they talked to them about a mental health issue. Mental health as well as physical health is at the forefront of many employees’ minds. There are many group health plans that offer mental health options, even virtual counseling. In addition, these plans offer many healthy incentives such as completing your annual wellness check up or keeping up with your daily walking goal. All this to ensure your employees are healthy inside and out.
6. It’s easier to get than you think!
Working with a health broker is easy and saves you precious time so you can continue to build and scale your business. Click the link below to schedule a virtual meeting with us so we can help you grow your business with a benefits package!
