If you are a small business owner, you may be struggling with the pros and cons of offering great employee benefits. Sure, providing your workers with even the most basic benefits and coverages can be costly, but it can also give your company a competitive edge in the job market. By offering a part-time or full-time employee benefits program, you will find it easier to attract top talent, retain employees, and boost productivity.
Unfortunately, between skyrocketing healthcare costs and your limited budget, you may feel like you don’t have the resources you need to offer your small workforce a healthcare plan they deserve. Rather than forgoing employee benefits altogether, check out these affordable and efficient benefits plans designed for small businesses like yours.
Voluntary Health Coverage
This type of plan is ideal for businesses looking to offer an option with little to no administrative work required and you can offer this health coverage without contributing to it financially. A voluntary group benefits option allows you to help your temporary and part-time employees secure the benefits they need, without the expense.
A self-funded plan is available to small business owners with at least 30 employees. This benefits option can be incredibly affordable, leading to as much as $1,000 in savings per employee. A self-funded plan does not require employers to work with an insurance company or a broker. Rather, they finance their own premiums, which are almost always less expensive than those offered by insurance companies. Another type of self-funded plan is the administrative services only (ASO) plan. This plan doesn’t require the employer to pay the kind of fees they would for a fully insured plan, but it does require them to work with a carrier for the administrative or adjudication services.
A health spending account is a great option for small businesses due to its relative simplicity. Employers just select a dollar amount per employee, which the employee can use for out-of-pocket medical expenses at their individual discretion. All they have to do is submit a claim to the administrator to receive a reimbursement.
In Canada, medical care plans have been made available to 70% of workers in the private sector, yet only 51% of workers participate in such plans. Many small businesses simply don’t want to use their resources to fund employee healthcare benefits. This is a mistake. By providing your workers with these benefits, you will have a leg up on your competition.
At companies offering 11 or more benefits, 66% of workers would recommend their employers as great places to work. With a reference like this, your business is more likely to attract skilled, hardworking employees who are likely to stick around. Losing unsatisfied employees can be costly. In fact, $11 billion is lost annually due to employee turnover. Let your employees know that you are dedicated to their wellbeing by offering them substantial benefits.