For a small business owner, offering competitive employee benefits is a crucial way to attract and retain strong talent. Whether you currently provide them and are planning next year’s renewal, or you are thinking of offering them for the first time, here are five things you should consider before your employees enter the open enrollment period for next year on Nov. 1:
Small Businesses Don’t Have to Wait
While your employees won’t be able to enroll in health insurance plans until November comes along, small business owners don’t have to wait at all to secure health insurance for their employees. The sooner you act, the better, to guarantee that you and your employees are protected. According to recent studies, healthier employees are happier employees and, as a result, will contribute to a more productive workplace. A more positive and constructive work environment is better for you, your employees and your business as a whole.
Health Literacy Is Important
Whether you’ve provided health insurance to your employees before, or you’re looking into doing so for the first time, it is always worthwhile to prioritize health insurance literacy. There is a host of terminology and acronyms, not to mention rules and regulations that can be overwhelming to wrap your head around.
The internet is full of relevant information, ranging from articles to explainer videos, that should have you up to speed in no time. Having a good understanding of insurance concepts such as essential health benefits, employer contributions, out-of-pocket maximums, coinsurance, provider networks, co-pays, premiums and deductibles is a necessary step to being better-equipped to view and compare health plan options side-by-side. A thorough familiarization with health insurance practices and terms will allow you to make the most knowledgeable decisions for your employees and your business.
Offering Health Insurance Increases Employee Retention
Employees want to feel like their health is a priority and are more likely to join a company and stay for longer if their healthcare needs are being met. A current survey shows that 56% of Americans whose employers were sponsoring their healthcare considered whether or not they were happy with their benefits to be a significant factor in choosing to stay with a particular job. The Employee Benefit Research Institute released a survey in 2016 that showed a powerful connection between decent workplace health benefits and overall employee happiness and team spirit. 59% of employees who were pleased with their benefits were also pleased with their jobs. And only 8% of employees who were dissatisfied with their benefits were satisfied with their jobs.
Alleviate Health Insurance Costs
High insurance costs can be an obstacle for small business owners. A new survey suggests that 53% of American small business owners stress over the costs of providing healthcare to their employees. The 2017 eHealth report reveals that nearly 80% of small business owners are concerned about health insurance costs, and 62% would consider a 15% increase in premiums to make small group health insurance impossible to afford. However, there are resources in place to help reduce these costs. One helpful way to cut down on health insurance costs is to take advantage of potential tax breaks available to small business owners. All of the financial contributions that employers make to their employees’ premiums are tax-deductible, and employees’ financial contributions are made pre-tax, which will decrease a small business’ payroll taxes.
Additionally, if your small business consists of fewer than 25 employees, you may be eligible for tax credits if the average yearly income for your employees is below $53,000. For small business owners, the biggest driver on insurance cost will be the type of plan chosen in addition to the average age of your employees. Your employees’ health is not a factor.
Use Digital Resources
You don’t have to be an insurance industry expert to shop for medical plans. There are resources and tools available that make buying medical plans as easy as purchasing a plane ticket or buying a pair of shoes online. Insurance is a very complex industry that can easily be simplified with the use of the advanced technology and design of online marketplaces. These platforms are great tools for small business owners to compare prices and benefits of different plans side-by-side. Be confident while shopping for insurance because all of the information is laid out on the table. Technological solutions such as digital marketplaces serve as useful tools to modernize the insurance shopping process and ensure that you and your team are covered without going over your budget.