As an employer, you are not only concerned about having great employees on board, but also keeping them. To avoid unnecessary costs that you might incur once people in your company start to jump ship, the smartest way is to offer a good benefits package, particularly, health insurance.
U.S. law only requires employers to offer their employees with certain benefits, and while health plans are not one of these requirements except in Hawaii, most companies provide them to their workers to keep up with the competition in human resources.
True enough, health insurance is one of the most desirable employee benefits that companies can offer. With the rising costs of healthcare, people can best make the most out of this particular benefit, especially for those who have immediate family members to support. Although this can also take a huge chunk of the business’ finances, investing in employee benefits can significantly benefit the company in the long run.
The Advantages of Employee Health Benefits
When you offer just what workers are looking for in a company, your business will significantly benefit from it sooner or later. Aside from the fact that health insurance is one of the offerings that attract top talents to your company, it is also the valuable tool that retains them.
An employee health plan can also bring you tax advantages when you offer a traditional group health plan or a defined contribution health plan, which will offer your workers a tax-advantaged health benefit. Through this, your overall compensation package increases while your income tax on the contribution decreases.
Generally, an insurance coverage keeps everyone in your workforce healthy and working. When they are in good health, they are more productive and satisfied with their jobs, helping your company to generate more profit and eventually attain success.
Why Cultivate Empowered Employees
When you offer other benefits aside from a competitive salary, employees are more likely to feel that they are being taken care of. And when employees feel that they are well compensated, chances are that they are less likely to leave your company—and the rest will follow.
In order to keep your employees satisfied, it is not enough to decide on a healthcare offering on your own. Employees feel more engaged and valued in your company when they are given a chance to speak up and make certain decisions, rather than just being spoon-fed everything.
Apparently, empowered employees can reap huge benefits for the company. When you leave them to get things done on their own with reasonable supervision, you are building trust and rapport within the relationship. Empowering employees also lead to faster problem resolution, higher quality customer service, and overall job satisfaction.
Keeping Your Employees Involved
There are a lot of options for you to consider when choosing for employee health benefits, but the most important thing to do before deciding on one is to consider your employees’ needs and preferences. Generally, they would need coverage for doctor’s consultations in a reputable facility that has top-of-the-line equipment such as oxygen sensors, patient monitors, and the likes. However, they might also need wider coverage, especially for employees who have long-term conditions, which is something that you need to consider as well.
There are two main types of small business health benefits: a group health insurance plan, which is the traditional plan for employees, and a defined contribution health plan. A group health insurance plan, which is also known as an “employer-sponsored” health plan, does not only cover the employee but also his or her family members. These plans are also generally uniform in nature, which means that they provide the same benefits for all members of the group.
On the other hand, a defined contribution health plan is a more affordable option to the group health insurance plan. With this plan, employers provide a “defined benefit” to employees by offering a tax-free allowance that they can spend on medical expenses and their own personal policies. Think of it as an expense account allotted for their personal healthcare costs.
When deciding on the type of health insurance to offer, it is best to listen to the side of your employees, and then you can weigh the pros and cons that each decision entails.
Knowing the Downsides
Of course, you also have to know what you’re getting into before availing a health benefit plan for your employees. The major factor that you need to anticipate are the healthcare costs, which have risen immensely over the past few years. For small business owners, the rising costs can drain valuable resources and make financial planning a lot trickier. There is also that tension around the business of cost-sharing with your workers. To control costs and create certainty, it is sometimes inevitable to push some of the costs to employees.
As an employer, the old adage—health is wealth—does not only ring true in every individual, but also to your own small business. When you nourish your employees by keeping them healthy and empowered, chances are they’ll be compelled to return the favor.