There is an opportunity for business owners to retain and recruit employees by providing healthcare solutions. Fifty-one percent of employees say benefits will play a significant role in talent retention, according to a 2023 study by Team Stage, “Employee Benefits Statistics 2023: How Many Have Health Insurance.”
Labor pools have tightened, and gig economy jobs like Uber and Lyft create competition with their easy entry, flexible hours and scheduling independence for their workers. With this in mind, employers should leverage their ability to provide healthcare solutions to their employees to compete for growth in the work field.
This article will offer advice for business owners on delivering affordable healthcare benefits to employees to keep their business competitive and retain top talent.
How to Deliver Affordable Healthcare Benefits to One’s Employees
Business owners often assume health insurance is expensive — and it is. However, benefits can be made affordable. Employers should focus on a strategy that delivers meaningful access to healthcare first, then add the financial protection employees may need based on their own circumstances.
It’s important to work with a health insurance consultant to implement a foundational plan specifically designed for low-wage earners that removes barriers like time and money. Virtual care is the most affordable and efficient way to deliver meaningful healthcare to employees, and its ease of access to doctors eliminates the stress employees acquire when working long hours.
It’s also encouraged to ensure that a business’s foundational healthcare plan delivers primary care office visits with affordable co-pays as opposed to high-deductible plans.
Consider the Budget
Next, businesses need to identify their budget and forecast their return on investment. Most industry experts agree that the cost of turnover for a $10–$15 hourly employee ranges from $3,000 to $4,000. For many positions that require specialized training, this cost could be much higher.
Businesses usually want to compete in this highly competitive labor market, so they are leveraging affordable core healthcare plans and offering them for free to their employees. The result is significantly reduced turnover.
Providing Security against the Unexpected
Lastly, employers should consider offering additional insurance options as a “buy-up” for high-dollar needs. This will look different for each employee — what one person sees as a high-dollar need, another person may not. There are a lot of affordable solutions that can protect against the unexpected.
For employers looking to offer a traditional major medical plan to employees, there are new breeds of high-performance affordable plans that grant transparency into the real cost of their healthcare spending. With this comes predictability of cost over multiple years and the opportunity to receive funds back at the end of the year. While these types of plans are typically available only for large employers, new level funded solutions are more popular than ever, particularly with small and medium-sized employers looking to gain control over their healthcare costs.
Businesses everywhere can deliver healthcare benefits to all employees without breaking the bank. The costs of providing benefits are a fraction of the costs associated with hiring and turnover.
David Slepak is president of employer services at StenTam, a full-service tax and employee benefits company offering technology-enabled financial solutions that provide accurate, compliant, hassle-free tax credit filings and employer services. Offering well-rounded and comprehensive employer services to help build and refine best-in-class benefit solutions, the multidisciplinary team leverages knowledge of tax incentives and programs to help maximize employee benefits and strategies.
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