As the end of the year approaches, small organizations, both for profit and non-profit, should be reviewing their health insurance options for their employees – if they have them.
This of course includes owners, and in some cases, could include the board of directors.
Benefits are a critical piece of an employee compensation package, and those who are responsible for the operation of their organization often overlook this fact.
Health insurance coverage as an employee benefit, ranks second only to salary or wages in importance to employees.
For the employer, the cost of medical, dental and vision coverage can, for the most part, be deducted 100% from their federal business taxes. Additionally, offering this type of benefit could result in lower payroll taxes if the benefit can be viewed as part of the employee’s overall compensation package.
According to the 2016 Aflac Workforce Report, 60 per cent of employees would take a job with lower pay but better benefits, while 16 per cent said they had left a job or turned down a job in the prior year due to the benefits offered by that employer. Additionally, 42 per cent of employees said employers making improvements to their benefits would be something they viewed as positive, which could keep them in their jobs.
Employers, both large and small, who focus not only on competitive wages but on adding and enhancing employee benefits, are tremendously more competitive and effective in providing their product to their customers.
So, whether it’s a new business or non-profit just starting out, or one that’s been in business for years, the advantages clearly outweigh the disadvantages when it comes to offering benefits to employees.