Updated August 9, 2019
Potential employees expect to invest a considerable amount of their time and talent with your small business, but what are you giving them in return? Hopefully, more than just a paycheck. They will look closely at the benefits package you offer, especially when considering a small business that doesn’t come with prepackaged corporate perks. Consider the following five reasons small businesses can gain their own benefits by entering into the world of small group health insurance.
Graduates and seasoned professionals might gravitate towards a smaller company when looking for employment for a number of reasons. For example, they may not appreciate the corporate atmosphere. They may like a small business that allows them more input or a tighter team that lets them shine brighter.
Whatever their motivation is, you may lose them without a comprehensive benefits package and, of course, that means health insurance. A small group health plan means more freedom for new employees and less stress. They typically sign up right away when hired and have less to worry about from the start.
Turnover costs are a business killer, especially for small companies. The investment that goes into training new employees makes it worth a little effort to keep the good ones on the job. A 2018 study conducted by eHealth found that 66 percent of small business owners said that they offered group health coverage in order to recruit and retain the best workers.
Overall, an impressive benefits package may serve as a major selling point for current employees. By offering health insurance benefits, you’re showing your team that you care about their well -being and that of their families. If you want to keep your employees, make sure they have practical and effective health insurance options, and consider offering a small group health insurance plan.
As a small business owner, you appreciate any opportunity to save money, especially when it means keeping your employees happy at the same time. A licensed insurance broker can show you how small group insurance plans affect your bottom line. Not only may your payments be lower on a per-person basis than if you bought individual coverage on your own, but the money you pay toward employees’ monthly health insurance premiums is typically tax deductible.
Group health insurance often means lower monthly insurance premiums for employees, and their contribution toward premiums can typically be paid from their pre-tax salary. That adds up to significant savings for your staff over time. With a group health insurance plan, you take their part of the premium out of their paycheck before you take out taxes. In other words, you effectively lower the amount of taxes each employee has to pay by reducing their taxable income. The money that they would have paid Uncle Sam for that income can go into compensating the employee instead.
You want your staff to feel like family, so putting them all under the same health care plan just makes sense. They can work together as a team, not only to grow your business but towards long-term health. You can implement community programs that focus on wellness too. Each employee knows from day one that this small business cares about their welfare, whether they sort the mail or make the executive decisions.
A small group health insurance plan is good business for small companies, especially if you want to save money on health coverage and medical care and keep your staff happy at the same time.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.