If the recent “Great Resignation” has affected your business, then you know how important it is to retain workers. Luckily, there are proactive measures for keeping the best workers, like offering medical benefits.
The Kaiser Family Foundation says that approximately 58% of small organizations and 99% of large organizations offer health benefits to some of their staff. TeamStage reports that 83% of businesses are considering increasing their wellness benefits for the future.
The Bureau of Labor Statistics recently gave a report that suggests employers recently paid 78% of single coverage plans for medical care premiums and 66% of the premium for family coverage plans.
You can improve employee retention by offering good medical benefits, including dental insurance, vision insurance, life insurance, long term disability, and short term disability. Here is why.
The Cost of Turnover
Before we discuss in further detail how much medical benefits mean to workers today, let’s talk about the cost to replace an employee. It is more than you may think.
SHRM suggests it costs an employer six to nine months of a worker’s salary, on average, to replace an employee. If you have an employee with an annual salary of $60,000, that means that recruiting for that position can cost between $30,000-$45,000 for recruitment and training.
Professionals will tell you that retaining employees cost less than turnover. Robert Half reports that 38% of workers leave their current employer due to “inadequate salary and benefits.”
Retaining Workers with Benefits
You are competing with other businesses. You compete for market share and sales. Not only that, but you are also fighting your competitors for top talent.
It is not uncommon for a competitor to contact your employees, trying to sway them to come to join their team.
It is critical that you tailor your benefits package in a way that is magnetic to most employees. You want to attract a worker with your benefits and ensure that they stay with you for the long run.
One way you can go about discovering what is important to workers in the job market is to survey your current employees. Ask them what type of benefits are important to them. Also, ask what additional benefits out there will interest them.
Medical Benefits are Most Common
Consistently, medical benefits are highly desirable to workers. It is not surprising given that healthcare is very expensive. In fact, without employer-sponsored insurance, it is unaffordable to many.
Coming out of the COVID-19 pandemic, good medical benefits are more important to workers than ever. Here lies the opportunity.
A Complete Benefits Package
If you are in a market or industry where there is a lot of competition for top talent, then a generous benefits program can be what separates you from the pack as the employer of choice. Doubling down on medical benefits, in fact, maybe the best option.
You will want to seek a vision and dental insurance provider for small to mid-sized companies to help you with offering a robust benefits package. Today’s workforce will also appreciate an employer who offers life insurance, long term disability, and short-term disability.
We Make it Simple
As Semple Solutions, our name says it all. We focus on solutions, and we have every client’s best interest at heart. Beyond rates, we can find a creative solution to help you maximize your benefits with the most effective cost to you, the employer.
We are happy to take the time to learn about your business. Contact us today, and let’s find a medical benefits package that fits your business and your employees.