Why Your Small Business Should Offer Group Health Benefits

In an effort to recruit and retain happy employees, small businesses like yours have to consider what’s most important to workers while also keeping in mind your organization’s budgetary constraints. Thinking about group health benefits is a good place to start.

Why Your Small Business Should Offer
Group Health Benefits

In an effort to recruit and retain happy employees, small businesses like yours have to consider what’s most important to workers while also keeping in mind your organization’s budgetary constraints. Thinking about group health benefits is a good place to start.

If your small business doesn’t offer group health benefits, your employees must purchase their own individual health insurance plans, or go without health coverage. Unfortunately, it has become more difficult for employed individuals to afford coverage as premiums rise to unprecedented levels in the United States.

In fact, premiums on individual coverage have gone up by 15 to 33 percent compared to last year, forcing families to choose between health insurance and basic necessities. In comparison, a recent survey by the Kaiser Family Foundation revealed that employer-sponsored plans rose by less than 5 percent in 2017.
Although businesses that employ fewer than 50 full-time equivalents aren’t required to offer group health insurance coverage under the Affordable Care Act (ACA), doing so can offer your business a number of competitive advantages.

Offering coverage improves employee retention rates

When individual health insurance premiums rise significantly, your employees will be forced to either ditch their coverage or may consider looking for work elsewhere. Small businesses that can offer affordable health plan coverage may see lower turnover rates, recruit more desirable talent and witness a spike in employee morale.  In short, it is an excellent strategy to control costs.

A Fractle survey found that most job seekers would consider taking a position with lower compensation if it meant getting better health benefits. Additionally, 88 percent of survey respondents said that health insurance is a top consideration when deciding whether or not to accept a job offer.

As a small business owner, you cannot afford to lose valuable employees to competitors who offer better benefits. According to the Society For Human Resource Management, the average cost-per-hire is $4,129 – but that figure doesn’t account for everything. When you consider the missed productivity, lower engagement rates and additional training hours, it becomes clear that the damage to your company could be even more severe. In fact, a study conducted by the Center for American Progress found the cost of losing an employee could total 16 percent of the earnings for an hourly, unsalaried worker and up to 213 percent of the salary for a highly trained position.

  • Save

Call one of our group benefits experts.
(772) 283-0003

Group health insurance saves money in multiple ways

Small Business Group health insurance saves money in multiple ways.  Under the Federal Insurance Contributions Act (FICA), employers pay Social Security and Medicare taxes. However, the costs of group health insurance and employer contributions to retirements are exempt from FICA taxes which is of the tax benefits you can take advantage of.

So consider this: Let’s say you have \$10,000 to spend either on employee bonuses and raises or on group health benefits. If you decide to give everyone a raise, you and your employees will have to pay additional taxes on that increased income. It may even put your employees into a higher tax bracket – which means they could actually owe the government more than they can afford. On the other hand, if you choose to invest in group health benefits, you won’t have to pay any additional taxes, the benefits are tax deductible and you’ll gain improved employee recruitment and retention rates. Your employees will appreciate your dedication to their well-being, and this perceived value will increase worker satisfaction as well.

  • Save

An insurance partner can find the optimal plan

If there’s one thing a small-business owner can always use, it’s more time. Sifting through the insurance marketplace, comparing plans and handling payroll changes requires a lot of effort.

Having an insurance agent is free to the business (the insurance carrier pays commission to the agent). We will save you time and resources by gathering quotes from major insurance carriers so you can focus on your business.

A dedicated insurance partner such as Fiorella will take care of the hard work by determining the most affordable plan, assisting with tax documents, and answering any questions your employees may have about their new coverage.

Get set up with employee benefits or let us lower your benefits cost by contacting us today!

multiple employee insurance benefits
  • Save

Leave a comment

Your email address will not be published. Required fields are marked *

Group Insurance

Get a Quick Quote Today

Speak to an Expert Licensed Insurance Agent Now Only takes a few minutes.
(772) 283-0003

Open
9 am to 7 pm ET Mon - Fri.
9 am to 5 pm ET Sat.

About Fiorella

We will steadfastly pursue a work environment that fosters growth both on an individual and corporate level.

Our culture will support and inspire friendships, responsible work-life balances, positive attitudes and open communication.

Recent Posts

The Insurance Blog

Subscribe to Our Blog and Receive Notifications About Insurance.

Tu Privacidad

Al enviar mi información, incluido mi número de teléfono y / o teléfono móvil y presionar en continuar, acepto la Política de Privacidad de este sitio y doy mi consentimiento para que Fiorella Insurance y / o sus Afiliados se comuniquen con nosotros de forma gratuita, cotizaciones de seguros sin obligación, y comunicación de seguimiento, incluyendo pero no limitado al seguro de salud, seguro de vivienda, seguro de salud y seguro de vida, así como a productos relacionados. Reconozco que estas compañías pueden llamar a través de un sistema de marcación automática, usar un mensaje pregrabado o enviar mensajes SMS. Reconozco y comprendo que no estoy obligado a proporcionar esta autorización para comprar bienes o servicios.

Haga click o toca para llamar:

(772) 283-0003

About your Privacy

By submitting my information, including my home and/or wireless number, and pressing Continue, I agree to this site’s Privacy Policy and consent to be contacted by Fiorella Insurance and/or its Affiliates for free, no obligation insurance quotes, and follow up communication, including but not limited to health insurance, homeowners insurance, Health insurance and Life Insurance, as well as related products. I acknowledge these companies may call via an automated dialing system, use a pre-recorded message or send SMS messages. I recognize and understand that I am not required to provide this authorization in order to purchase goods or services.

Click or touch to call:

(772) 283-0003

0 Shares 4.2K views
4.2K views 0 Shares
Share via
Copy link