With fewer small businesses offering health benefits in 2017 than in years past, employees can be thankful for working for a firm that does. If your business cannot currently afford to provide coverage, partnering with a professional employer organization (PEO) like Progressive Employer Management Company can give you access to the buying power needed to put competitively priced benefit packages within reach.
If you’re looking for ways to retain your best workers, consider the advantages of being able to provide employee health insurance. Dissatisfaction with benefits is one contributing factor in high turnover, according to an article in the Neumann Business Review. This hurts your bottom line as employee replacement costs can reach as high as 50 to 60 percent of an employee’s annual salary.
Being able to provide health insurance can set your small business apart from many potential competitors. The Kaiser Family Foundation/Health Research & Educational Trust (HRET) 2017 Employer Health Benefits Survey found that just 50 percent of firms with fewer than 50 employees offer health benefits, down from 59 percent in 2012. According to KFF, about 44 percent of the small firms that do not offer health benefits said the reason for not offering coverage is high costs:
“Small firms are much less likely to offer health benefits to their workers, and when they do, workers may find it quite costly to enroll their families,” said study lead author Gary Claxton, a KFF vice president and director of the Health Care Marketplace Project.
Price does not have to be a barrier. PEMCO can provide the extra buying power needed to leverage more cost-effective and robust health insurance offerings than your business could otherwise afford.
Outsourcing benefits management to PEMCO will let you focus on the growth of your company while giving you the purchasing power to offer enticing benefits to your employees. You can save money on administrative overhead and the replacement costs for new employees. Contact us today.