Request a quote

Companies of any size

Contact Us

Talk to a person

Current clients, call
1-800-232-2006

How group health benefits help tip the scales for small companies

How group health benefits help tip the scales

Employers with fewer than 50 full-time equivalent employees (FTE)* are not required to offer group health insurance, but since six out of ten employees rate health benefits as a very important contributor to job satisfaction, you may want to consider offering it.1

Offering group health coverage suggests to employees they're important to your business and that you care about their health. Here are a few ways group benefits can help tip the scales for small companies.

Group coverage can tip the scales on...

Retention

Benefits are vital for attracting the right talent to your company and keeping it there — and that’s especially important when you consider that employers typically spend about a fifth of an employee's salary to replace a worker who leaves.2 So for an employee earning $50,000 a year, it costs about $10,000 to replace him, versus an average annual health premium of $6,435 (of which the employee typically pays a portion).3

Compensation

When companies do not offer group insurance, employees often look for a higher salary. But many small business owners overlook that contributing to employee health insurance can be potentially more cost-effective than raising an employee's salary. Why? Health insurance contributions are tax-deductible to the employer and tax-exempt for the employee. Plus, consider that 79 percent of workers would choose new or additional benefits over a pay raise.4

Productivity

When workers are worried about how they're going to pay for things or handle a medical problem, they're stressed and distracted. Highly stressed employees are less engaged, less productive, and are absent from work more than those who aren't stressed.5 Having health benefits can help workers prioritize their health, keeping them well, and on the job.

If group health coverage doesn't work for your business, another option is to put money into an employee Flexible Spending Account, or FSA. An FSA works with any kind of health plan—even one that's not offered through your company. And now, $500 of FSA money can be carried over to the following year; anything over $500 reverts to the employer.6 So even if you don't offer health coverage, this can go a long way toward showing that you appreciate your workers.

Receive articles like this in your inbox each month. Subscribe to our eNewsletter.

Resources for employers

We’ll help you get the most of your employee benefits

Products and Services

Explore the different types of group benefits we offer for employees.

See group insurance options

Healthcare reform

The Affordable Care Act will continue to affect your business.

Learn about the ACA

Wellness solutions

Engage your employees for a healthier, more productive workplace.

Get details