How To Start & Grow Your Business

What Benefits You Should Offer, Post-Healthcare Act

From the Editor's Desk
Feb 27th, 2015
  • Estimated reading time: 2 min read
  • Hummy's
    Highlights

    1Consider a salary boost to cover premiums. 2Millennials value increased flexibility and time off. 3Affordable healthcare increases appeal of alternative perks.
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Human Resources

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Health insurance. What used to be the cornerstone of an employee’s benefits package has become prohibitively expensive for many small companies to provide. The annual cost of covering a single employee has risen to roughly $10,000 on average.

For small businesses with fewer than 50 full-time staff, providing health insurance is not mandatory. This doesn’t completely let small businesses of the hook, however. Offering employees competitive benefits is still necessary to attract and retain a competent workforce.

Entrepreneur.com published an article titled “4 Alternatives to Offering Paid Healthcare Benefits, by Matt Straz, suggesting a few non-health-insurance options that can satisfy all parties, within a reasonable budget.

Alternative #1: Chip in for your employees’ insurance premiums.

Straz says, “Instead of taking out plans for the whole company, give everyone a boost in salary or an annual bonus to help cover the cost of employees’ personal insurance plans.”

Alternative #2: Offer them other perks.

He says the kind of benefits packages offered will be changing, particularly as Millennials begin to dominate the workforce.

Whereas previous generations considered health insurance as a must-have in their job search, Millennials, who will make up 75% of the workplace by 2025, place a higher value on perks such as:

  • Flexibility in where and how they work
  • More flex/vacation time
  • Innovative work environments (think Apple and Google for inspiration)

Bottom Line:

Regardless of where your employees fall along the age spectrum, the article states that offering insurance coverage isn’t as much of a draw as it once was, considering that individuals can now afford to cover themselves with the Affordable Healthcare Act.

“It’s possible that, in the next 10 years, offering healthcare as a benefit may be irrelevant given the new freedom individuals have with adopting personal healthcare plans. Just as the workforce is changing, companies should adapt and be aware of the benefits that might be more pertinent to employees,” Straz concludes.

To view the original article in its entirety, please visit Entrepreneur.com.

About the Author

From the Editor's Desk

This article was written by a bizHUMM Staff Writer. We aim to provide practical tips that help solve your burning small business questions. If you have any suggestions or ideas for articles, please email them to: editor@bizhumm.com