If youâ€™ve interviewed anyone at all in your life, you know that no matter how exciting the job is, sooner or later the conversation will turn to what you are offering for employee benefits. To be sure, it is an important part of a decision as to whether or not someone should consider a position at your company.
Depending on the personal situation of any given individual candidate, there could be severalÂ reasons that a person may be concerned about what kinds of employee benefits you offer.
Suffice it to say though, no matter what the reason is, it is very important to that individual and should be treated as such.
Donâ€™t Underestimate The Importance Of Employee Benefits
Too many times small business owners under value the need to offer employee benefits, or at least health insurance. Citing that they are â€˜small,â€™ there tends to be a mindset that employees at small businesses should expect to not receive employee benefits or at least good ones. Apparently the good fortune of working for them should overshadow the lack of benefits.
Workers today absolutely need to have health insurance for the very real reason of having to obtain it anyway under the new ACA regulations. When faced with staggering rates for individual plans that offerÂ miniscule coverage, working for a small business versus a larger firm with employee benefits is a bit of a â€˜no brainer.â€™ Unless you plan on covering an employee for their deductible costs, you are very likely missing out on some great candidates, if not losing some valuable employees for the same reason.
What You Are Not Considering About To Employee Benefits
There are some things that need to be realized on the part of the entrepreneur when it comes to benefits. These are the issues your employees and candidates need to consider when they decide if they are going to work for you.
They Can Depend On Spousal Coverage – True enough, some of your employees have spouses who are covering them for health insurance and other benefits so they are not as concerned about yours. This may even be something they donâ€™t consider until their spouse loses their position or takes a job with another company that doesnâ€™t offer the benefits either of them were hoping for. When it comes to paying COBRA, your employee and their spouse will be feeling the sting as COBRA bites into their monthly budget in no time. Depending on spousalÂ coverage is a faulty surety that you donâ€™t really need to offer benefits.
You Pay More So You Donâ€™t Have To Offer Benefits- Have you seen what the coverage looks like for someone who is looking to buy an individual or family policy on their own? The costs are outrageous, especially now that the government subsidies have dried up with insurance companies offering these kinds of plans as of 2017. Add to the phenomenal cost the paltry coverage and whatever you are paying in a salary, even if you are paying it all accounts for very little with a plan that offers practically no coverage. This is not the way to meet the needs of your employees or candidates if you want happy and healthy people working for you.
With A Little Research You Can Offer More Than You Thought – For many entrepreneurs who do not currently offer employee benefits, most of them either have never looked into it or they did in the past and could not get over the price. Small business plans can be overwhelmingly expensive but there are other options besides purchasing your own small group plan.
PEOs offer entrepreneurs a fantastic way to offer the most benefits for the least possible price. What a PEO does for a small business is co-employ your employees and therefore bear the burden of offering benefits, managing payroll, performing all HR functions and offering limited legal coverage. All this for up to 40% less than what youâ€™d pay on your own.
The small business of today needs to offer employee benefits to stay competitive, that is a given. A PEO makes the realization a lot more palatable by offering affordable benefits and much more.
If You Have A Quote From A Small Group Plan Right Now
If you have a quote from a small group plan sitting on your desk right now and have yet to pull the trigger on it, maybe you should consider a PEO. A PEO broker will walk you through the process to help you understand what you need from a PEO so you are sure the quote you get is the right one for you. Would it be worth looking into to get more out of your employee benefits solution for a lot less money? We think so.