Inflation, interest rate hikes, and economic uncertainty has amplified the financial strains on healthcare costs, which are predicted to rise by up to 8.5% for employers this year. This reality has placed a significant burden on businesses and employees alike, making effective and affordable health benefits a crucial factor in supporting employee retention and business success.
Findings from a recent Intuit QuickBooks survey of employees about their employers’ benefits found that 61% of employees at small companies feel the impact of economic shifts in managing health insurance costs, and nearly a quarter (23%) struggle to afford their employer-provided benefits. Amid these challenges, your growing business has a unique opportunity to personalize health benefits offerings. This strategy can distinguish you from your larger counterparts and help your employees get the benefits they want and deserve in a way that works for them.
Build a competitive edge with offerings to retain talent
Today’s job market is filled with employees who know their worth. That means offering health benefits is no longer a perk but a necessity for retaining your top talent. Your business has the opportunity to differentiate itself by emphasizing a people-first workplace, which can distinguish you from larger corporations, and that can start with ensuring you’re offering the best benefits package possible. According to the QuickBooks survey, 4 in 5 workers will leave their current job if it doesn’t provide the necessary benefits. Specifically, 78% of employees at small companies would look for a new role if their benefits package proved inadequate. Offering robust benefits packages can demonstrate to your employees that their health and financial security are valued.
Health benefits rank second only to salary when influencing job offers. Employees at both small (64%) and larger (63%) companies consider healthcare benefits as one of the top two factors in their employment decisions. The implications are clear: to stay competitive and retain your skilled workforce, ensuring your health benefits meet employee expectations is essential. By prioritizing comprehensive and responsive health benefits in your strategy, you not only enhance employee satisfaction and retention but also position your business as a top choice for prospective talent looking for a supportive workplace.
Place flexibility and personalization at the core of your business
Flexible Spending Accounts (FSAs) and Preferred Provider Organizations (PPOs) are among the most popular choices for employees at small companies, according to the survey data. To enhance employee satisfaction, broaden your benefits offerings to include FSAs and PPOs and supplemental benefits such as dental, vision, and mental health services. This variety gives your employees the freedom to choose the options that best meet their needs, potentially saving money by forgoing benefits they don’t want.
One of the key advantages you have as a small business is the ability to quickly adapt and personalize benefits offerings. In fact, when it comes to employee benefits, small and growing businesses are just as capable of offering effective employee benefits as their larger counterparts. The survey found that 81% of employees at small companies are satisfied with their companies’ benefits, nearly matching the 83% approval rate at larger firms. For assistance in exploring insurance options, consider partnering with licensed insurance brokers who can guide you through various available employee health insurance plans. For example, businesses can connect with dedicated agents to personalize health benefits packages for their specific needs through Allstate Health Solutions in QuickBooks.
Understand Economic Pressures to support long-term planning
The recent economic downturn has significantly affected long-term financial planning for many, with (71%) of employees at small companies reporting escalating medical costs have hindered their ability to save for emergencies or retirement. This financial strain underscores the critical need for small businesses to adapt their benefits strategies to better support their employees' financial health in addition to well-being.
The survey also revealed that flexibility in benefits options is highly valued among small business employees, with 50% at small companies desiring a range of supplemental benefit options such as disability and life insurance. Beyond basic health coverage, these options not only protect against immediate risks but also contribute to long-term financial security, reinforcing your commitment to supporting your employees.
If budget constraints limit your ability to provide employer-sponsored disability insurance, you can facilitate a program where employees can purchase their own policies. Premiums could be conveniently deducted from their paychecks, similar to how Social Security contributions are managed.
Prioritizing comprehensive and responsive health benefits is more than a strategy; it's a necessity in today’s economic climate. By aligning your benefits offerings with the needs of your workforce, you’re investing in the heart of your business - your people.
