Small business insurance is universally accepted as part of running any business, but many overlook employee benefits. Employee benefits can actually give small businesses the edge when it comes to productivity, talent acquisition, loyalty, employee morale, and so much more.
Why Should My Business Offer Group Benefits?
Group benefits do more than just provide employees with a safety net when unforeseen circumstances arise. Group benefits, such as group health insurance, are also beneficial for a business for the following reasons:
- They increase competition among applicants to secure a position in your company.
- They can reduce operational costs since employees will accept lower salaries if group benefits are included.
- Group benefits improve morale and create happier employees with better productivity.
Businesses that provide group health and life insurance to employees can also include their contributions as tax-deductible expenses.
What Are the Benefits of Having Happy Employees?
An article published by Forbes Magazine has highlighted that happy employees benefit a business.
Happy employees who care about the place where they work are not only more likely to take the initiative when issues arise in the workplace, they are also up to 20% more productive than unhappy employees. For salespeople, this rate jumps up to employees being 37% more successful.
What Are the Main Types of Group Benefits?
While employee benefits traditionally include group health insurance and a 401K, there are other types of group benefits that you can choose from to make working for your company more attractive. These include:
- Paid time off
- Group health insurance
- Professional development and networking opportunities
- Group life insurance
- Flexible schedules
- 401K retirement plans
- Funding education and training opportunities
Are Additional Benefits Better Than Offering a Raise?
Increasing an employee’s wage can leave both of you open to additional taxes. Because group health insurance or life insurance can be secured at much lower rates with lower premiums through your company, the savings that an employee receives compared with being insured outside of the company may be worth more.
As an employer, you also benefit from having more people in your group health insurance plan, lowering the cost per person.
What Else Do Employees Get from Group Benefits?
Outside of having access to educational and career development opportunities, if employees are provided with a high-deductible plan, they can then make use of a Health Savings Account.
Any money they choose to save in this account is not taxed, meaning they also avoid paying taxes on funds they use for medical procedures.
Should You Cover Employee Family Members as Well?
Including family members or dependents in your employee’s health or life insurance is a balancing act.
Offering benefits as a whole is a way of improving a business’s employee acquisition and retention rate. If you wish to attract more attention and retain more loyal, talented employees, this can be an effective option.
How Do I Set Up Group Benefits for My Employees?
You can read more about setting up group benefits on our blog post here. The basics include:
- Prepare a budget
- Decide on any unique employee benefits
- Analyze the total compensation
- Finalize plans, set a start date, and communicate this with employees
Get in touch with Bethany Insurance to see how our team of expert agents can help your restaurant find the right insurance policies that can give you extra support and peace of mind.
