Should your small business offer employee health benefits? While these benefits help the employees directly, they also directly affect the employer's bottom line. How? Here are five of the many ways your profitability can be improved by medical benefits.
1. You Retain Good Employees
It's less expensive to retain a quality employee than to have to go find a new one. Some studies estimate that it may cost $4,129 and take 42 days to hire a new employee. Therefore, if you can retain your current valued employees, your company saves money. And a robust benefits package that includes health insurance helps.
2. You Appeal to Good Employees
Good employees work to make your company better all across the board. And one of the best ways to appeal to a pool of qualified and sought-after candidates is to offer health benefits. Many job candidates highly value health insurance benefits, so this could even help your business make up for an inability to raise wages or provide other benefits.
3. You Get Health Insurance
Many small business owners and their spouses can't afford their own health insurance. But it's even more important for you to have coverage if the business relies on you for a bulk of the work. Imagine how devastating it could be to your income, operations, marketing, and other business elements if you were injured or became too sick to work. But if you can get your employees health coverage, you get it too.
4. Employees Can Get Help
Healthy employees are better for your business. They aren't stressed over health problems, they have access to mental health resources, they can get preventative care, and they get better faster. All this means that they will be able to work more consistently, are less likely to leave due to health issues, and can focus on their jobs. That's valuable for any employer.
5. Everyone Gets Tax Benefits
Both the employee and the employer can usually deduct the cost of health insurance premiums from their taxable income. So if you as an employee are looking for deductions, this can be an easy place to find them. And you can offer employees what amounts to a raise in pay (the value of benefits) that is nontaxable for all.
Want to know more about offering health insurance benefits as a business employer? Start by meeting with a business health insurance provider or agent in your area today.