If you’re a small business owner, you might feel you don’t have the funds necessary to offer employee benefits. That being said, not offering at least basic coverage can cost you more than just money. Here at Sackett & Associates Insurance Services, we’d like to take some time to break down just how much and what you have to lose by not offering your workforce health insurance, no matter how large or small your organization is.
The Financial Cost
Companies that don’t offer group health insurance are more likely to lose employees to companies that do. Depending on the salaries offered and the number of employees you lose, your financial losses could ramp up into a couple hundred thousand of dollars to recover from the loss as well as replace those employees. Something else to think about is the fact that that number can increase the longer a position goes unfilled.
The Productivity Cost
In addition to the monetary costs, there’s also the cost in productivity companies have to think about. Without the necessary number of employees needed to keep things up and running in your company, productivity can take a serious dip, and your other employees might have to take on more duties, which can impact their overall productivity as well.
Even if your employees don’t have to take on the duties and roles of other employees, they might feel the financial stress of not having access to proper health insurance. If the employee has a current health issue that could be better and easily taken care of with health insurance, his or her work performance might suffer due to the individual being unable to perform at her or his best at work, or by worrying about how much it costs to receive proper treatment.
An Ill-Advised Solution
Rather than endure the cost of not offering employees benefits, some companies opt to increase wages and suggest team members spend the bump in pay on paying for their own insurance. While this might seem like an ideal solution, one problem is there is no guarantee the employee will undoubtedly spend that extra money on personal health insurance. There’s also the fact that this workaround often costs the company in payroll taxes.
To learn more about how you can successfully offer your employees group health insurance and retain their talent, contact Sackett & Associates Insurance Services by calling 707-823-3689. You can also like us on Facebook, find us on LinkedIn and sign up for our blog.