There are many benefits that your business can offer to its employees to keep them motivated and more productive in the workplace, but health insurance tramples them all. Many employees will attest to the fact that having a health insurance policy provided by their employer signals that the company cares for their well-being, and they are therefore more willing to deliver on the job.
Many companies have realized the importance of providing health insurance to employees that even those which are not legally required to do so by the Affordable Care Act are doing it — that is, companies with below 50 full-time equivalent employees.
If you are not sure if it’s time for you to consider providing health benefits for your company, here are the signs and some of the top reasons to guide you through:
1. If Your Workforce is Growing Fast
If your small business is doing well and expanding its workforce quickly, then it’s a definite sign that soon you will need to offer your employees health insurance coverage. According to the Affordable Care Act,1 you will be required to provide coverage to your workers when your company grows to 50 or more employees or else you are likely to face a penalty. This employer mandate came into effect in 2016 and requires that employers with this number of employees need to offer health insurance to at least 95 percent of their full-time workforce (those working 30 or more hours per week).
2. When You Are Looking for Top Talent In The Market
When you are looking to hire top talent in your industry and want to lure them into your organization, it works a great deal to have an excellent, attractive benefits package on top of their basic pay. For most employees today, one of the crucial things they look for in such a benefits package is health insurance. If it’s not included in your package, they will take an offer from your competitor who is providing it. According to a study by BambooHR,2 83 percent of the interviewees believed that health insurance played a critical role in their decision on whether to take or leave a job.
3. When You Want To Retain Your Workforce
Another sign its time to offer your employees health insurance is when you notice your workforce is leaving your company to work with your competitor who has a better benefits package. Employees are often looking for greener pastures and giving them health insurance coverage makes your grass greener and is one of the ways to make sure they don’t have to keep looking for the next “pasture” to hop on to.
4. When You Want To Boost Your Employee Wellness and Productivity
Healthy and comfortable employees are more productive than those with wellness-issues. Therefore, it’s essential to keep your employees as happy and healthy as possible by providing coverage so that they can get care whenever it’s necessary. So, if your employees are not performing well on the job because of healthcare-related issues, it’s time you consider giving them health insurance coverage.
5. When You Are Looking For Tax Breaks
If you are searching for ways that your company can enjoy more tax breaks, providing health insurance to your employees could work to your advantage. It can help you kill two birds with one stone — provide healthcare affordability to your workers and enjoy tax breaks from the IRS. However, this varies from company to company, and therefore you should consult your accountant or tax consultant for professional advice.
You may be concerned that offering health insurance coverage will be expensive for your company, but you’ll be surprised to know it isn’t. If you do comprehensive research or use a broker to find a reliable cover for you, your company can reap massive benefits!