By: Chuck Greenewald
Is it really all that important for a small business to offer employee benefits like Medical, Dental, Vision, Disability, and Life insurance? You bet it is! Read on to find out why.
One of the biggest challenges that Americans have faced – especially since the Recession of 2008-2016 – is the ability to afford medical insurance to provide for the healthcare needs of themselves and their family. With so many people facing the difficulties of unemployment or underemployment, it has been common for people to go without Medical insurance just to pay their mortgage or rent, keep the lights on, and keep food on the table.
With the improvement that we have seen in the U.S. economy over the past two to three years, large businesses started to staff up again, and small businesses – most of which are comprised of fewer than 20 employees – have been established in growing numbers. It has been said that small businesses are the “backbone” of American business. The Small Business & Entrepreneurship Council points out that, based on 2016 U.S. Census data, companies with fewer than 20 employees made up 89 percent of companies in the United States, and companies employing fewer than 20 employees “experienced the largest gains, adding 1.1 million net jobs.”
Most small business owners would sincerely say that their employees are the heart of their business, and that in order to draw and retain the best people, it is important that the employees be fairly compensated and as generously incentivized as the company’s financial strength allows. And any small business owner who has worked hard to build and grow their company has likely at one time or another experienced the pain of losing key and highly valued employees.
When we say “Small Business” we mean companies with under 50 full-time or full-time equivalent employees. In Georgia, if you have over 50 full-time or full-time equivalent employees you must offer an affordable, qualified health plan.
Here are 6 reasons why a small business should offer employee benefits such as Medical insurance, and ancillary benefits such as Dental, Vision, Disability, and Life insurance.
In Georgia, most health insurance plans are only available through groups. All PPO and NPOS networks are locked behind group plans (unless you live in North Georgia). There are only 4 major medical insurance options for individuals in Georgia while groups have access to many more. Additionally, if your employee does not qualify for an individual subsidy, they may not be able to afford the high cost of an individual plan.
Many Medical plans encourage preventive care and reward a healthy lifestyle, which translates to healthier employees, which — in turn — benefits the employer with better work. Companies are starting to realize that their employee’s total health will impact the company’s bottom line.
Businesses that offer employee benefits experience greater success in drawing and retaining well qualified job candidates. Health, vision, dental, life, short and long-term disability insurance plan offerings play a huge roll in the modern employee’s decisions on whether to take a job with a specific employer. All large employers offer these benefits and many times small companies are competing with both large and small businesses for top talent.
Ancillary group benefits such as Dental and Vision plans offer discounts to employees on important services that many people tend to put off to their own detriment. And the cost to the employer is relatively insignificant compared to many of the other costs of operating a business.
Group Short and Long-Term Disability and Life insurance provide peace of mind for a small business’s employees and their families in the event tragedy strikes. Many times, if these benefits are not offered the employer will feel some type of responsibility to help the struggling employee or their family. This can end up costing more than just offering employees these benefits in the first place!
Small businesses that offer employee benefits are making an investment in their employees, and that creates a sense of well-being and appreciation on the employee’s part — which often translates to less employee attrition. Employees who have a generous benefits package from their employer will have a greater sense of loyalty to their employer.
If you are a small business owner — or an HR or office manager for one — who wants to attract and retain the best people, Georgia Health Insurance, Inc. has the expertise to help you navigate how to offer employee benefits like Medical, Dental, Vision, Disability, and Life insurance. Call Georgia Health Insurance, Inc today at (770) 452-9335 and ask for Licensed Agent Daniel Potter, or send him an email using our contact form below. You may also schedule a meeting with Daniel by accessing his calendar online. We hope we will have the opportunity to serve you!