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March 15, 2019

Five ways employee benefits are advantageous for smaller businesses

March 15, 2019

Five Ways Employee Benefits Are Advantageous for Smaller Businesses

Smaller organizations today are raising the bar with innovative employee benefits to better compete with larger employers. From wellness programs, to free health preventative appointments and virtual doctor consultations, smaller businesses today recognize that employee benefits can be an important recruitment and retention tool.

Fancy perks like yoga classes and chair massages may seem attractive, but the real game-changer is in the healthcare benefits companies offer their employees. And with many innovative options now available to smaller employers, healthcare benefits can be a key recruitment tool.

According to a Harvard Review Study that asked respondents to rank a list of 17 employee benefits, 88 percent consider better health, dental and vision insurance the most important benefit when choosing a job. Here are five ways employer-sponsored health coverage can help smaller businesses attract and retain their employees.

1.  Reduced absenteeism

Healthy employees are more likely to show up to work on time and be productive. Employees that take advantage of preventative health services and treatments will be more positively active in the workforce. Health benefits help you stay out of the hospital and contribute to an employee’s effectiveness at work. Employee health benefits are a win-win. Employers want happy, healthy employees and employees want to be happy and healthy as well.

2.  Increased job satisfaction

Employees appreciate being able to save money and not pay out-of-pocket for their healthcare and other services. The feeling that their employer cares about them translates into being a happy employee and feeling satisfied with their job.

3.  Improves employee engagement

Healthcare benefits help to boost employee morale and makes employees feel more positive about their work and their employer. This leads employees to be more engaged in work-related activities. A better attitude translates into more on-the-job engagement.

4.  Increases employee retention

Talented employees have the upper-hand when it comes to negotiating job perks and benefits. If an employee is debating between two job offers, benefits can make a difference in the final decision. Better benefits help employees have a positive attitude towards work and their employer. They are going to feel more motivated because they feel valued.

5.  Demonstrates the employer values healthcare

When employers place a high value on healthcare, it sends the message that healthcare is important. This is especially true for busy adults who have limited time due to job and family commitments. For example, a working mom with several kids may be so busy she lets her own health and preventative care lapse. But when an employer places an emphasis on healthcare, it helps employees prioritize it as well.

Another related employee benefit that can go a long way toward keeping employees healthy is an Employee Assistance Program (EAP). EAPs provide short-term counseling and other counseling services, including wellness, tobacco cessation and weight management groups. These types of employee benefits can be a deal-breaker for potential employees.

The quality of healthcare offerings can vary; it’s important for employers to weigh the benefits and limitations of the options. Employers need to recognize that potential employees look for healthcare that will meet their needs, when considering job offers. In particular, prospective employees check to make sure their providers are covered in their network and out-of-pocket costs for treatment are affordable.

Beyond recruitment, employers need to recognize the costs incurred when employees are unable to work due to illness or injury and design a benefits program that, while supporting the company’s priorities, reduces risk and controls cost. MMA can review your current benefits program and help you design a plan for the right coverages and cost control strategies. Contact us today to get started.