Ever wonder how many Americans have group health insurance? The Kaiser Family Foundation estimates that approximately 156,199,800 Americans (49 percent) receive employer-sponsored health insurance (also known as group health insurance). You may have one question in mind regarding employers providing coverage for their employees and their dependents: Why? Because it’s good for their teams and good for business. By offering health insurance to employees, you signal to your team that your concern for them goes well beyond the office.
Here are four reasons why providing health insurance is beneficial for everyone:
Health insurance makes employees happy
The results of a recent employee benefits survey indicate that 88% of employees would consider a lower-paying job with quality health benefits over a higher-paying job. Furthermore, a whopping 54% of employees would “heavily consider” this tradeoff. Employees are telling us what they want. If benefits are a top priority for them, it should be a top priority for your business. Offering health insurance and a robust program can boost recruitment and motivate people to stay at your company. In addition, holistic employee benefits that take care of an individual’s diverse set of needs have become critical during COVID-19, and employees are turning to their employers for support. According to Employee Benefit News, here are the top three perks’ employees seek:
- Paid vacation
- 401(k) plans
- Mental health coverage
Employee Benefit News conducted a separate survey which asked participants to choose their top non-insurance or retirement benefits:
- Paid family leave
- Flexible/remote options
- Professional development
It saves everyone money
Insurance is less expensive when purchased as a group— when employees buy it on their own, it means spending money after-tax. When employees purchase health insurance through a group plan, they pay for the insurance with pre-tax dollars. That can save them up to 45% on their premiums. This message often gets lost on employees. Providing benefits and educating employees about their benefits is an excellent way to demonstrate your commitment to them.
There are three critical areas for savings for employers:
- Employer contributions are tax-deductible
- Payroll taxes are reduced by 7.65 percent of employee contributions
- Workers compensation premiums are reduced
Investing in health insurance instead of a higher salary may allow you to save money because you don’t pay payroll taxes or workers’ compensation premiums on the money you spend on healthcare. Additionally, many employees prefer better benefits over an incremental salary increase as well.
Providing health insurance helps boost employee productivity
In a study from MetLife, 60% of employers state that offering health insurance has contributed to higher productivity levels. Your employees’ productivity and success at work will increase if you help them become the best version of themselves. They lose a lot of energy and valuable time worrying about health insurance. Setting it up can be a pain, and those enrolled in individual plans bear the responsibility of managing them.
It is easier than you think
Don’t take this on by yourself. Insurance brokers or consultants can guide you through the whole process. You should expect your agent or broker to:
- Help you select the best insurance plan for your company based on your industry and coverage needs
- Maintain compliance by setting everything up and keeping you informed
- Be your employees’ healthcare expert and advocate, so you don’t have to deal with hard-to-answer questions about health insurance and how to navigate the system
From building a healthier, happier team to saving money, there are many reasons to provide health insurance to your team. By offering health benefits, you demonstrate you care, thus fostering loyalty and trust. If you already provide your team benefits, when was the last time you had someone look at them? A set-it-and-forget-it approach can be detrimental not only to your employees but also to your bottom line! If you haven’t reviewed your company’s health plan in more than 12 months, you will be amazed by the strategies and new technological advances!
Written by Jacqueline S. Charles Digital Marketing Strategist + License Benefits Consultant, Sapoznik Insurance, a World Company