As a small or mid-sized business owner, the thought of offering health benefits to your full-time or part-time staff may be a non-starter.
After all, small business owners make huge financial investments just to get the operation up and running. Alarming statistics from multiple sources find that these proprietors face very tough odds for success.
The data shows that approximately 20 percent of small businesses fail within the first year, 30 percent by the end of the second year, and 50 percent close their doors within five years.
These daunting figures lead many small business owners to the same conclusion, “Running a prosperous business already requires a tight budget. How would I ever afford to spend an immense amount of money on employee health benefits?”
Small business owners do have a choice. The vast majority of businesses that employ less than 50 employees are not required to offer the option.
Yet, there are many reasons to consider offering health benefits to your staff. There are two foremost advantages. One is fostering a motivated, hardworking staff that gives their all and then some. The second is attracting and retaining top talent to your small business.
In the former situation, insurance companies that offer preventive healthcare, such as yearly checkups, can catch potentially damaging and even life-threatening problems early.
For instance, a great employee’s potential might be hampered by frequent exhaustion. A doctor visit may unveil a thyroid problem that leads to medication and a more energetic worker.
Workers can also be more focused knowing that their health benefits could prevent or minimize later health issues, such as a condition that runs in the family.
A common misconception is that health benefits must be offered at no charge to the recipient. Organizations are permitted by law to offer insurance in which the staffer must pay a percentage of their plan. There are many companies that offer different plans to suit your price point.
There are also financial incentives for offering benefits. You may be eligible for a small business healthcare tax credit. In addition, generally speaking, health insurance premiums paid by the employer are tax-deductible as a business expense. This can lower the company’s taxable income and reduce the overall tax burden.
A very significant benefit is attracting and retaining the best and brightest workers. For instance, a top-level barista with several job offers’ decision could be heavily weighted by the company that offers health benefits.
Word of mouth spreads quickly. These small businesses may also be likely to be flooded by top talent resumes.
Making health benefit packages available also establishes your organization as one that truly cares about its staff. That’s an important factor in many shopper’s minds when choosing to frequent businesses. A good number of customers want the best, which boosts your bottom life.
Small businesses wary of investing significant dollars for health benefits programs should consider the many, down-the-road advantages of attracting and retaining a first-class staff that appreciates your generosity through their hard work and superb customer service.
