5 Ways Health Insurance Will Drive Your Small Business’s Bottom Line
Successfully running a small business is no easy feat. As your company’s leader, it’s likely that your role involves juggling multiple functions of the organization. One hour you’re the HR manager and the next you’re the head of Sales, Marketing, Customer Service – the list goes on. If it’s not already, hiring new employees is certainly going to be a top priority that enables you to focus on strategic growth. Hiring a team comes with its own difficulties, not the least of which includes attracting the right talent to your organization. When you eventually find the right fit, a great economy and low unemployment make for increasingly selective candidates. How will you stand out? How will you incentivize team members to stay on?
Health insurance is one of the main ingredients in the recipe for success when it comes to reaching your business growth objectives. The right benefits plan and strategy will help drive costs down, increase productivity and let your employees know that you care about them.
Below are five ways health insurance has proven to have valuable impacts on small businesses.
1. Recruit talent
Your company’s mission and competitive pay may attract the right people to interview for your job openings. However, when an offer is extended to your ideal candidate, they will have a few other considerations, including benefits. “What’s my salary?” is often followed up with the question “What benefits do you offer?” A weak response may lead the candidate to look for career opportunities elsewhere.
In a competitive job marketplace, employees can afford to be increasingly selective about the companies they are considering for employment. Health insurance may be the differentiator between the candidate’s acceptance or declination of the offer. In fact, your business may be missing out on key talent already if certain candidates are only considering companies and positions that offer health insurance benefits.
2. Retain talent
According to a report by Work Institute, 9% of employees voluntarily leave their employer because of dissatisfaction with compensation and benefits.1 This means that the cause of employee turnover, in this case, is highly preventable.
3. The cost of turnover
The cost of turnover is high. In fact, a report by Work Institute conservatively estimates the cost of employee turnover as high as 33% of the employee’s annual salary.2 This is due to the direct costs (separation costs, replacement costs, training costs) as well as the indirect costs (loss of productivity) that are encountered when an employee leaves. The report goes on to state that a “$100,000 investment in retention will pay for itself if it prevents 7 employees from leaving who otherwise would have.”3
There’s a significant cost to having a sick employee or an employee with a sick child. Without health insurance, common sense tells us there’s a high risk that the sick individual will avoid going in for treatment to avoid out-of-pocket expenses. This could mean longer periods out-of-office and lost productivity.
5. You don’t just get a health insurance plan, you also get support
When you select a Blue Cross NC health insurance plan for your small business, you get more hands-on-deck when it comes to supporting your employees. When you sign up with Blue Cross NC, you’ll work with one of our trusted agents who will be dedicated to your group. The agent is responsible for your plan’s administration and communication, as well as pointing your company in the right direction when it comes to the ever-changing regulatory world of health insurance compliance. Our agents are appointed to guide you through the decision-making process. Depending upon the size of your employee base, you’ll be able to customize your plan’s funding options (how much you pay vs. how much each employee contributes) and your plan’s offerings.
BONUS reason: You can show that you care about your employees
Nothing beats the value of feeling well-cared for as an employee. It’s a motivating force that can at times outweigh compensation and even adversity in the workplace.
If you’re considering a health plan for your small business, you can find our plans here. We look forward to helping your business be successful by creating a healthier, more competitive workforce.