In 2024 employees have a wide range of tools to optimize their job search. As much as business owners are searching and interviewing candidates to find quality talent, they are also interviewing you. One effective strategy employers can take is offering health benefits to their team. In this blog, we will discuss why small businesses, particularly those with under 50 employees, should prioritize health benefits to retain quality talent in 2024.
The Need for Health Benefits
Healthcare expenses continue to rise, making it difficult for individuals to afford medical treatment. According to PR Newswire, private health plan premiums including HMOs and PPOs will see increases up to 6-10%.
Access to quality healthcare is essential for an employee’s wellbeing, it helps them stay healthy which in turn reduces absenteeism and boosts productivity. Those team members who continue to work through illness, have reduced cognitive abilities, prolonging deadlines, and increasing their ability for errors in their work.
Team morale and job satisfaction are key factors for employees when choosing a job. Another major consideration is whether a company offers benefits that support their health goals. Offering health benefits shows that a small business values its employees' well-being, helping foster a positive work environment which leads to increased employee longevity.
Retention of Quality Talent
In this competitive job market, standing out from other businesses is crucial. Offering healthcare coverage can be a powerful way to attract top talent, giving your business an edge for long-term success and cost savings. On average companies pay 4 times more to hire new talent, than they do to promote from within or retain their existing employees. The U.S. Chamber of Commerce Small Business Index 2024 reports that more than 22% of small businesses have increased their staff over the last year, with more expected to hire before the end of Q4 by prioritizing health benefit offerings. When employees feel valued and supported, they are more likely to stay with the company reducing turnover rates.
How Health Benefits Help in Attracting Quality Talent
Improved job satisfaction: Employees who receive health benefits are more likely to have higher job satisfaction levels and a better work-life balance. This contributes to a positive work culture and champions employee loyalty.
Financial stability: Health benefits can provide your team with financial security and peace-of-mind. This stability can attract individuals who prioritize their overall well-being and are seeking long-term employment with employers who care.
Work-life balance: Health benefits often include provisions for mental health, wellness programs, and flexible work arrangements. In a 2024 article written by Fortune, they found that almost 59% of workers would consider a salary cut in exchange for better health benefits.
Improving the Work Culture
These offerings can help your workforce achieve the better work-life balance they are seeking, in addition to choosing an organization that highly values their team.
The positive impact that providing health benefits to employees can bring to a small business cannot be understated. By doing so, small business owners will not only contribute to the overall well-being of their workforce but also gain a competitive advantage in attracting and retaining quality people. As the business landscape continues to evolve, health benefits will remain a crucial factor in building a successful and sustainable small business.
If you are a small business owner considering everyday healthcare options for your team, Meridio might be a good fit. Meridio is the leading provider of health benefits for small businesses with under 50 employees. Their offering boasts ACA-compliant plans to avoid tax penalties, no group minimums, $0 deductibles, and standard nation-wide rates. Speak to one of our experts to learn more about how Meridio could help save your bottom line.