Small businesses are the backbone of America. They help improve the standard of living in the communities they operate in by generating employment, improving the provision of goods and services, and spurring innovation. Unfortunately, over a third of the country’s small businesses shut down at the height of the coronavirus pandemic due to faltering demand.
While the worst of COVID-19 is now behind us, small businesses are experiencing a slow comeback. Some of the challenges they face include attracting new employees, retaining current ones, building back demand to pre-pandemic levels, and lowering long-term expenses. If your business is facing similar issues, one of the best things to do is to consult an insurance agent about how to safeguard your employees’ well-being through medical insurance services.
Read on to find out some of the main ways insurance services help small businesses.
1. Lower Tax Expenses
It’s tempting to avoid investing in employee health insurance for fear it’ll add to your company’s expenses. But did you know employer-paid health insurance premiums are exempt from federal income and payroll taxes? In other words, insurance services help small businesses save money in the long run, provided the group insurance plan chosen fits within the company’s budget.
It’s also worth noting that health insurance premiums aren’t included in an employee’s taxable income. In other words, insurance services help small business employees save money—which is why many American families opt for employer-provided medical insurance coverage.
2. Reduce the Frequency of Sick Calls
According to the Small Business Administration, a business is deemed small if it has fewer than 500 employees (in the manufacturing/mining industries) or fewer than 100 employees (in the wholesale trade industry). The fewer employees a business has, the greater each employee’s impact is on the company’s profitability. In other words, small businesses are likely to suffer considerable financial losses if a staff member takes a sick day.
One of the best ways to solve this issue is by working with group insurance services to provide health coverage for your staff. The provision of employer group insurance will help your staff nip mental and physical health issues in the bud so they can be as healthy and productive as possible.
3. Minimize Employee Turnover
Did you know businesses lose a trillion dollars a year due to voluntary employee turnover? Research shows that almost two-thirds of employees quit their job recently because they didn’t feel they were being paid enough. This begs the question—if you’re a small business, how do you increase employee remuneration without taking from your bottom line? The answer is simple: provide non-monetary benefits like medical insurance.
While it’s true that taking out employer group insurance increases a company’s short-term costs, this is a small price to pay in the grand scheme of things. The money small businesses save from not having to recruit and train new employees more than makes up for the cost of group insurance. Moreover, retaining talented employees helps small businesses foster positive company culture, prevent dips in productivity, build the reputation of their brand, and strengthen customer relations.
4. Bolster Talent Recruitment
Suppose you receive job offers from two virtually identical companies, but only one of them provides employee health coverage. Which one would you pick? Chances are you’d go with the one that offers medical insurance! This is a clear example of how insurance services help small businesses attract talent.
Whether a small business is effective at recruiting talent by offering employee health insurance as a work benefit depends on two key factors—marketing and consulting a well-regarded insurance agent. We recommend small businesses sit with an insurance agency to understand group insurance thoroughly so they can market it effectively to job seekers. We also recommend small businesses speak to an experienced insurance agent about which employer group insurance plans provide enough coverage to attract jobseekers without exceeding their budget.
Covered California Certified Agent Helps Small Businesses Understand & Select Employee Health Insurance Plans to Maximize Profitability
Eager to harness the power of insurance services to benefit your small business? Our team of expert insurance agents at Covered California Certified Agent is ready to help.
We’re an insurance agency in California that specializes in helping small businesses select employer group insurance plans that fit their budgets. We also help everyone from students to families understand the terms and conditions offered by a plethora of individual health insurance and dental insurance plans.
Call us now by dialing 800-771-7653 to speak to an employee insurance services specialist with a proven track record of helping small businesses maximize long-term profitability through group insurance.