With the cost of healthcare rising by the second, offering your employees a healthcare plan can sometimes put an unnecessary strain on your company’s budget.
But, on the flip side of the healthcare coin, when employees are covered, it usually results in a less stressful, worry-free work environment.
If you’re on the fence about offering your employees health coverage, here are just a few benefits that might sway your decision:
Attract the Best Candidates
Although offering your employees healthcare coverage does mean more out-of-pocket expenses for your company, it also helps attract the best possible employees.
According to the Census Bureau, more than half the U.S. population had health insurance coverage provided by their employer in 2011.
This means that if your company doesn’t offer coverage, qualified employees might just look elsewhere for work.
Not only does employment-based health insurance help your company retain its top employees, it also helps attract the best candidates in the workforce when it comes time to hire.
Ensure the Wellness of the Workplace
There’s a ton of debate about the importance of employment-based healthcare, but the cost of healthcare always seems to overshadow its long-term benefits, especially in the workplace. When employees are healthy, they’re more productive, which is great for your company.
In addition, when your employees have health insurance that includes preventative coverage like regular physicals, it ensures the well-being of the entire workplace. This means your staff is less likely to take sick days or prolonged absences due to health issues.
So, when you are choosing a health insurance plan for your company, keep in mind the importance of workplace wellness.
The government wants your company to provide its employees with health insurance just as much as you do, so that’s why they’re offering health insurance tax credits to qualifying businesses.
If your company has 25 or fewer full-time employees, their wages are less than $50,000 a year, and you pay at least half of their insurance premiums, you could save a lot of money on your taxes.
How much? Well, for example, say you pay $50,000 toward your employees’ health care premiums in a year. The government will actually give you a 15% tax credit, which saves you $7,500 on your taxes. And, the best part is, the more you contribute, the bigger the credit!
Before you sign your employees up for healthcare coverage, there are some things to consider that could drastically change the type of coverage you choose as well as the costs involved:
• Type of Work – The type of business you run has everything to do with your healthcare decision. If you run a business that’s considered “high risk” by the insurance company, like an industrial or manufacturing business or anything that involves heavy machinery, your company’s premiums could skyrocket.
• The Workforce – You also need to take the age and health of your current employees into consideration. If you have an older workforce or any of your employees smoke or have preexisting medical conditions, it could make the healthcare coverage process a headache.
• Part-Time vs. Full-Time – Are the majority of your employees part-time or full-time? If the answer is part-time, then it might not be worth the investment because part-time employees aren’t likely to stay with your company for an extended period of time.
By keeping in mind the benefits and considerations above, you’ll have an easier time coming to a healthcare coverage decision.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including personal health and small business.