Offering health benefits can be great for your team and your wallet.
Building a successful business is hard work. For many employers, deciding whether or not to offer group health coverage can be a difficult one. Most employers want to do everything they can for their employees, while needing to consider their bottom line. Finding the balance is key.
Attracting Quality Employees
Obviously, offering comprehensive health benefits gives your business a competitive edge in attracting outstanding employees. Providing coverage can often be the deciding factor for a qualified person. Not only will the applicant most likely save money, but it also saves them from having to research, buy, and maintain coverage for themselves and their family.
Retaining Quality Employees
Group health coverage does double duty for an employer. Nearly 80% of employees say a comprehensive benefits package is a big incentive in staying with an employer long term. For an employer, especially for a smaller business, this can be paramount in order to save the tumultuous time needed to replace and train quality employees.
It's Good for Employer's Bottom Line
There's more to offering health insurance than just making your employee's happy. With a Section 125 plan, usually called a POP plan (Premium Only Plan) the employer's portion of premium contributions are a business deduction. Additionally, the amount your team pays toward their premium is done on a "pre-tax" basis, saving the employer payroll taxes on the employee's portion as well.
It's Good for your Employee's Wallet
With a POP plan in place, the employee's portion of premium can be taken out of their paycheck "pre-tax" which not only saves them on their payroll tax but decreases their taxable income. A win win for employees!
Brings Your Team Together
Group health benefits provide a sense of community. Employees feel their employer is invested in their health and their future within their organization. Just as important is the assistance with shared resources and knowledge. With much confusion surrounding health insurance these days, it helps employees to have their information centralized. They know when and where to go for help utilizing and understanding their health coverage.
There is a lot that goes into beginning a new benefits program, but with the right help, it is a lot easier. Soon you, your employees, and your bottom line will find it is well worth the effort!