51 percent of employees say benefits will play a significant role in talent retention.* For businesses owners there is an opportunity to retain and recruit employees by providing healthcare solutions. This article will offer advice on delivering affordable healthcare benefits to employees that can help you compete for growth in your industry.
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Labor pools have tightened and gig economy jobs like Uber and Lyft, that offer easy entry, flexible hours and independence create a competitive advantage. Employers can leverage their ability to provide healthcare solutions to their employees to compete for growth in the work field.
Steps to delivering affordable healthcare benefits
Business owners often assume health insurance is expensive – and it is, however, benefits can be affordable. Employers should focus on a strategy that delivers meaningful access to healthcare first, then add the financial protection employees may need based on their own circumstances.
It’s important to work with your health insurance consultant to implement a foundational plan specifically designed for low-wage earners that removes barriers such as time and money. Virtual care is the most affordable and efficient way to deliver meaningful healthcare to employees. Virtual access to doctors eliminates the stress employers acquire when working long hours.
It’s also encouraged to ensure that your foundational healthcare plan delivers primary care office visits with affordable co-pays as opposed to high-deductible plans.
Next, identify your budget and forecast your return on your investment. Most industry experts agree that the cost of turnover for a $10–15 hourly employee is between $3000 to $4000. For many positions that require specialized training, this cost could be much higher.
Businesses usually want to compete in this highly competitive labor market, so they are leveraging affordable core healthcare plans and offering them for free to their employees. The result is significantly reduced turnover.
Lastly, employers should consider offering additional insurance options as a “buy-up” for high-dollar needs. This will look different for each employee – what one person sees as high–dollar needs, another person may not. There are a lot of affordable solutions that can help protect against the unexpected.
For employers looking to offer a traditional major medical plan to employees, a new breed of high-performance affordable plans gives them transparency into the real cost of their healthcare spend. With this comes predictability of cost over multiple years and the opportunity to receive funds back at the end of the year. While these types of solutions have typically been available to only large employers, new level funded solutions are more popular than ever with small and medium-size employers looking to gain control over their healthcare costs.
Businesses everywhere can deliver healthcare benefits to all employees without breaking the bank. The costs of providing benefits are a fraction of the costs associated with hiring and turnover. If you’re considering providing benefits to employees, we hope this article will help you navigate the process.
* Employee Benefits Statistics 2023: How Many Have Health Insurance | TeamStage
Author: David Slepak is president of employer services at StenTam. StenTam is a full-service tax and employee benefits company offering technology-enabled financial solutions that provide accurate, compliant, hassle-free tax credit filings and employer services. Offering well-rounded and comprehensive employer services to help build and refine best-in-class benefit solutions. The multidisciplinary team leverages knowledge of tax incentives and programs to help maximize employee benefits and strategies. For more information, visit www.stentam.com.
