The benefits that are provided by a company are often one of the most important factors considered by job seekers. They are often just as important, if not more important, than the financial offer, especially for those with large families.
I polled several business owners and asked the following question: “Do you think offering employees and their families full health insurance is a smart business expense? Yes or No. And why?”
Whether or not to offer full benefits is something all companies have to think about, and if you are one of those, then hopefully the feedback below is helpful and assists in navigating through this very important business decision.
It is often highly rewarded.
“Taking that cost and headache off their hands is a very nice gesture and one that is often rewarded with hard work, loyalty and dedication. It is something I highly suggest and if funds are tight consider cutting some other expenses in order to afford this one.” — Matt Herron, CEO of AnswerFirst
Provides you with another write-off.
“Offering health insurance is a great way to add another tax write-off onto your corporate expenses. It also provides your employees with a sense of well-being knowing that they are covered if they do have a medical emergency. You should take the time to shop around for the best plan for the business.” — Joseph W. Belluck of Belluck & Fox, LLP
Consider things like turnover rate.
“While it’s an attractive benefit, whether it’s a smart expense is based on your organization’s employee turnover rate, and the competitiveness of other companies hiring from the same pool. If employee retention is a problem, extending health benefits to employees’ families may help keep key people.“ — Sean Christman, Founder of Slamdot
You can help secure lower-cost coverage.
“Offering employee health insurance is a good idea. A business has more bargaining power with insurance companies and can often obtain cheaper coverage than employees could on their own. It is like a raise for employees that the business only partially pays for.” — Matthew Kolb of All High Schools
It covers the cost.
“It’s probably the right thing to do. Offering employees additional salary or incentives to make up for this cost can be better and time-saving for many small businesses. This still covers insurance but puts the burden on the employee.” — Marc Webb, Founder of Real PDL Help
Consider a higher salary.
“Insurance costs are crazy high. In many cases, it might be better to pay the employees a bigger salary and let them shop for their own health insurance plan. In competitive talent pools, this might not be an option.” — Shawn Schulze of HomeArea.com
Shows you care.
“Yes, if you can afford to do it. It’s a simple way to keep your team happy and it shows that you care. It also gives them peace of mind knowing they are covered. Any time you can eliminate stress from their life it enables them to focus more at work. It’s a very wise perk to offer in my mind.” — Christopher Dziak, CEO of Pure Nootropics
Employees give their best in return.
“Offering work balance opportunities are a must. When you treat your employees like human beings not cogs in a wheel you get their best. Providing opportunities for vacation, ways to be healthy and active, removing stress over costly insurance coverages ensure they are refreshed and ready to work.” — Shawn Freeman, Founder and CEO of TWT Group
Great if you can afford it.
“Smart? Of course; if you can afford it. Realistic? Well, not for everyone. With healthcare costs skyrocketing, it’s become a big topic of discussion. Some companies have gone under because of their rising healthcare costs. If you can afford to do it, then yes, it’s a great move.” — Ari Evans of AAA Handbags
Helps attract the best talent.
“Benefits are a major selling point and one way to help your business attract the best talent. It’s an investment in the people that you trust to operate your company, so it’s one that shouldn’t be skipped. A lot of employees will opt for a slightly lower salary and great benefits.” — Tom Munroe, CEO of RugStudio
It’s greatly appreciated.
“Yes, offering employees full health insurance is an awesome way to give back to them. Everyone knows how much insurance costs have risen in the last six years due to the new laws, so I think employees are starting to appreciate it more and more.” — Ben Walker, Founder of Transcription Outsourcing, LLC
Determine whether or not it makes financial sense.
“It has to make financial sense. Some companies can afford to give everyone amazing health benefits, while some can only do it for senior level employees and not part timers. It is a great perk, but make sure it won’t sink the business. You have to keep long term survival in mind.” — Jim Epton of Dom Huga Ltd
It improves the quality of life for your team.
“Anything you can do to improve the quality of life for your team members is a wise business decision. Your business is only as good as your team, so treating them well builds loyal employees that will work much harder knowing they are appreciated.” — Andrew Tran, Founder of Therapy