Create a great benefits package as a small business

Conscious business owners prefer to offer their employees desirable benefits to enhance loyalty and retention. In addition, most small employers understand that a strong and attractive benefits package is essential to attracting good candidates when hiring.

So, what makes a benefits package “great”?

It depends. as one company noticeAnd the

While this can vary depending on who you ask, the standard in most industries consists of health insurance, dental insurance, flexible spending accounts, retirement savings plans, vacation time, and additional paid time off for events such as family medical leave and maternity leave. , and quit.”

In addition, many employers offer other perks such as life insurance, vision insurance, child care benefits, flexible or remote work options, professional development resources, and financial planning services.

Prioritize benefits offerings among several options

The shocking truth is that most small businesses are unable to provide many of the perks and benefits that large corporations can afford.

However, the upside is that, as attractive as some of these less common benefits are, prospective employees and new hires usually place a higher value on only a few core benefits. In other words, not offering incentives for fitness or a healthy lifestyle isn’t usually a problem closing the deal

So, what do employees value most when it comes to benefits?

According to the provider of employee benefits programs PeopleKeepThere are key employee benefits that most industry experts say are essential to attracting talent competitively: paid time off for health care and possibly a savings option for retirement.

And another Forbes Article He pointed out that the five best employee benefits are appreciated by workers, according to A Master surveywere as follows:

  1. Flexible working hours
  2. Company-sponsored retirement or retirement plan
  3. Left early on Friday
  4. Four working days a week
  5. Family health insurance

Of course, one of the main advantages of benefits, such as flexible working hours, working four days a week, or even having a short work day on Fridays, is that this costs the employer little or nothing. However, the perceived value of workers is high.

Despite some arguments to the contrary, many companies report higher levels of productivity, worker satisfaction, and increased recruiting and hiring competitiveness when these special benefits are offered.


Offer health insurance coverage when you don’t have to

As most small business owners know, provisions of the Affordable Care Act require that most employers provide health coverage for their employees or pay a penalty tax, often called a pay-or-play clause. Small businesses with fewer than 50 employees are not required to offer health insurance benefits to their workers.

However, in practice, despite the extra costs involved, nearly half of employers with fewer than 10 employees offered health benefits in 2021, while more than 70 percent of those with between 10 and 200 workers did. health coverage.

In other words, for the majority of small business owners, the benefits of providing health benefits outweigh the expense.

According to the Kaiser Family Foundation (KFF), the average annual single premium per employee on employer-based health insurance in the United States in 2021 was $7,380. The median annual household premium was $21,381.

Interestingly, in 2021, employers covered 83 percent of individual or individual insurance plans for their employees and 73 percent of family insurance plans for employees.

This expense is offset to employers to some extent by the increased health and well-being of workers, which results in higher productivity. In addition, increased employee retention results in lower recruitment and hiring costs. For example, the costs of acquiring a new rental in the United States can be staggering.

According to Sun Finance ArticlesAnd the

The Society for Human Resource Management (SHRM) reports that, on average, it costs a company 6 to 9 months of an employee’s salary to replace him. For an employee making $60,000 a year, that works out to $30,000-$45,000 in recruitment and training costs.”


Reduce the costs of offering a large benefits package

Perhaps the biggest additional cost to employee benefits is administering and managing those benefits. For example, in the United States, the median salary for a human resources professional is between $48,500 and $73,000, with the median being between $112,200 and $141,800 in California, depending to the payroll website.

And while you may still be a “small business” with just over 40 workers as mandated by the ACA, managing the various benefits of an employee of nearly forty employees may require more than one HR manager. Which means additional payroll expenses

However, when you work with an insurance broker like JC Lewis Insurance Services, you can take full advantage of the Ease program. Ease is a purpose-built benefit management system designed for small businesses to make managing and managing employee benefits simple and extremely affordable.

With Ease software, employers can quickly and easily manage paid time off (PTO) requests, payroll communications, prepare ACA reports, onboarding and firing employees, and staying in compliance.


JC LEWIS can help you provide employee health insurance benefits

At JC Lewis Insurance, we want to be your insurance partner, offering only the highest quality health insurance plans from leading health insurers licensed to do business in the states in which we operate.

We are a family owned and operated health insurance agency located in Sonoma County, California. As specialists in finding and managing medical insurance plans for companies large and small, we are licensed and approved by every insurance company we represent.

When you’re looking to offer your employees a great benefits package – and one that includes great health insurance coverage – you’re likely to have many questions and concerns.

This is great because we welcome your questions about health coverage insurance, and you can be confident that JC Lewis Insurance Services will help you find the right solution.

JC-Lewis Services

Source link

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *