I have a small business here in Santa Rosa with about 9 employees. Several of my employees are requesting that I look into providing health care coverage for them because they don't qualify for a subsidy through the ACA. Can you explain to me how offering health insurance to my employees will help my company?
The ACA has most certainly served as a catalyst for in-depth conversation for business owners of companies of all sizes, and small business employers may feel they aren’t able to compete with their larger counterparts when it comes to healthcare benefits. The truth is that not only is it affordable for small business owners to offer health insurance, doing so is a great way to satisfy your employees and improve your professional reputation.
Employers who provide benefits are more likely to see an increase in overall employee retention. Even if you don’t offer a competitive salary, candidates might be drawn to the fact that you do provide health insurance. Doing so can show you care about your employees as well as their health, and that you’re aware of the most current employee desires.
Save on Employee Overturn
Another advantage of offering health benefits is that you can save money in the long run. Whenever you lose employees, they take a few of your profits along with their expertise. You’re already well aware of how much it costs to bring on and train an employee, but you might not have a fully-formed idea of how much it costs to lose an employee. Lost productivity, hiring and training are added to the bill when it comes to losing one employee and bringing on another one. That cost increases if your new employee decides things aren’t working out with your company as well as he or she had hoped and decides to quit.
Small business owners are also likely to find their employees feel more appreciated when their employer provides health benefits. This loyalty is likely to shine through in the work your team does and the attitude they bring with them to work every day. You’d likely give your all at work too when you’re in good health and work for a company that wants to make it easy for you to bring your best day in and day out.
Swiveling the focus from your employees and on you for a moment, offering insurance can qualify you for tax incentives. Specifically, there are income tax deductions available for business owners who offer health benefits and would like to reduce their out-of-pocket costs. Depending on how many employees you have, you might even qualify for a tax credit.
As you can see, Thomas, there are several great reasons to offer your employees insurance, both to them and to you as a small business owner.
Best of luck,
For more information on employee health benefits, contact Sackett Insurance Services at 707-823-3698.