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Introduction
You may be considering whether to provide affordable health insurance to your staff as a small business owner. Any company may find it challenging to decide whether to provide small business health insurance, and you may question the benefits of doing so for your staff.
1. Obtaining cheaper monthly premiums
Giving small business health insurance may be economical due to the group health plan’s reduced cost. According to a recent eHealth study
- In 2018, the average price for an individual health insurance plan ($440) was 7% more than the average premium for a small business plan ($409).
- Compared to the average deductible for individual health insurance ($3,140 vs. $4,578), the average individual deductible for small company health plans was 31% ($1,438) cheaper.
2. Take advantage of tax perks
It offers small companies affordable health insurance with additional financial advantages, including tax savings for the employer that come with a group plan. There are various ways that a group health plan can benefit your company’s taxes:
- In general, employers can completely deduct from their federal company taxes the cost of the monthly premiums they pay for qualified group health plans.
3. Make adjustments to your hiring and recruitment tactics
Offering small business health insurance can help a business stand out as an employer of choice and can be a crucial component of a successful hiring strategy.
Many employees value employee benefits like health insurance.
- According to a 2017 Lending Tree survey, over 32% of Americans would like to see improvements in their health insurance coverage, and 33% of people have declined a job due to a lack of benefits.
- According to a 2015 Glassdoor survey, 57 percent of American job applicants claimed benefits and perks are among their top priorities before accepting a position.
4. Promote employee retention and loyalty
Along with providing a group plan, modest adjustments to the workplace can significantly increase employee retention. Some potential low-cost suggestions for proprietors of small businesses include:
- Enhancing teamwork, encouraging open communication, and organizing team-building activities can all help to increase employee loyalty.
- Minor changes to workplace arrangements and lighting can assist create a more comfortable work environment and demonstrate your concern for their well-being to staff members.
5. Increase job satisfaction among staff
Offering small businesses affordable health insurance is terrific because it may significantly contribute to maintaining or raising employee work satisfaction.
The following three fundamental employee perks had the highest link with employee happiness, according to a Glassdoor Economic Research poll, out of a list of 54 employee benefits:
- health protection
- Holidays/Paid Time Off (PTO)
- Options for retirement planning like 401(k)s and pensions
6. Healthier and more effective workers
Employees have better access to medical resources when they have group health insurance. Giving staff members the security of health insurance can result in fewer sick days and absences and more focused and productive workers for a small business.
7. Encourage a positive workplace atmosphere
By offering small business health insurance, you can demonstrate to your staff how much you value their well-being. In turn, this appreciation might support the development of a favorable and productive workplace culture.
A Harvard Business Review article drew information from several studies showing how effective work environments are over time for organizations. The HBR article explored the positive effects that a positive organizational culture may have.
8. Employee pre-tax benefit
Employees commonly pay cheaper monthly premiums when group health insurance is offered, and they can typically deduct their share of the cost from their pre-tax wages.
Over time, this could result in significant tax savings for your staff. How does that function?
9. Assist in making health insurance affordable for employees
To make health insurance more accessible to their employees, some small business owners may opt to provide a group plan. The eHealth study also revealed that most small firms are concerned about their employees’ ability to pay for medical insurance and treatment.
Conclusion
For all the right reasons, eHealth makes it easy to discover affordable health insurance for your business. Once you provide specific details, such as your zip code and the number of employees, you will immediately have access to various group health plans provided by various insurance providers.
