Why Should Your Business Offer Health Insurance To Employees?
If you are a small business owner and wish to grow exponentially over the next few years, there is one thing that is crucial for your growth – a good team! But to have a good team means to have individual team members who have the exact set of skills needed to complete tasks efficiently. They also need a great work culture, and of course, a nice compensation package. One of the deal breakers in your compensation package can be a health insurance. It has been found that employees tend to stick with employers who offer this benefit over others who don’t.
In the USA, one out of four small businesses offers health insurance to their employees, and 22% of the rest are planning to follow this trend. If you are a small business owner yourself, you might want to consider this. After all, health insurance will keep your employees happy and healthy – something which will increase their productivity at work. Most people think it is quite a huge task, and hence, do not bother to think of adding health insurance. But you might be surprised to know how it can help your business.
It’s Easier Than You Think
Contrary to what you might be thinking, this can be very easy if you take help from a healthcare advisor. Depending on the size of your team and their age group, a healthcare advisor will be able to suggest an appropriate healthcare plan for your employees. You need to go through the options and find out what needs to be included in the insurance plan. In fact, if you know the ins and outs of the entire healthcare plan, it will be easier for you to answer questions when your employees are in doubt.
It Keeps Your Employees Happy And Healthy
Employees love perks in any compensation package. Guess which benefit is the most popular? Health insurance, of course! A survey by Glassdoor showed that the top three benefits that employees looked for in their compensation packages happen to be health insurance, vacation and paid time off, and retirement (401k) plans. As mentioned before, it will not only keep your team happy, but will also ensure that they are in good health.
You Can Save Money On Tax
It has been found that buying insurance for a group means less payment for your premium.When employees buy health insurance on their own, it becomes an extra expense for them. They earn money, pay tax, and what is left after paying tax, they use it to buy their health insurance. But when employees have health insurance through their employers, they are using their pre-tax dollars to buy it which will help them save about 30-40% on their insurance premium.
As for employers, they save money, too. That same Glassdoor survey found out that employees prefer having benefits over a raise which means you can always provide health insurance instead of giving them higher salaries. You will be saving a lot of money on payroll taxes and workers compensation premiums, too. Payroll taxes are lessened by 7.65% of employee contributions which are tax-deductible as well. So, overall, it is a win-win situation for the employer where he can save tax money as well as keep employees content.
It Gives Better Access To Doctors And Hospitals
Individual health insurance has a limited coverage of doctors and hospitals. But when you purchase a group insurance policy, you will have a wider network of readily accessible doctors and hospitals. This is often beneficial to insurance holders as they hate it when they don’t get their choice of doctors covered in the insurance policy.
It Increases Productivity
When employers are happy, they are quite naturally more productive. Apart from that, health insurance can often be quite complicated and difficult to set up. If you, as an employer, offer health insurance as a benefit, your employees will spend less time worrying about setting up their health insurance and spend more time getting office work done. This is definitely good for their productivity.
So now you see, from keeping your employees happy and healthy to getting them to be more productive – health insurance can have a very good effect on your business. Also, the fact that you want them to be healthy shows that you care, and helps build a foundation of trust between employer and employee.
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