Group Health Insurance in California – Value to the Employer.
While many companies see offering group health insurance to their employees as a value to the employee, the value to the employer may be just as substantial.
Retention is measurably higher in companies that offer group health insurance. In one recent study, employees ranked health insurance benefits as the number 1 item they are driven to when searching for a new job. Yes, above salary! Some companies offer to fully pay for health insurance benefits, where others just supplement the cost by paying a certain percentage of the cost. Either way, retention is increased in jobs where group health insurance is provided. When searching for jobs, good, quality, experienced employees who know they are worthwhile won’t think twice about a job that doesn’t offer health insurance benefits. By not offering the benefit, employers are limiting the strength of their workforce. Often, the good employees a company does manage to secure quickly leave once they find another job that offers more comprehensive benefits. CA employees not only see the financial and protective value of insurance, but they also view employers who offer group health insurance as caring and loyal to them. Em
ployers who choose to ignore this important benefit are missing out on the highest caliber of employees.
Along those lines, it is always good to beat your competitors. If you are in a competitive industry, you know your employees can make or break you. If you are offering quality group health insurance and other terrific benefits, the experienced, valuable employees in your industry will be clamoring to your door to leave the competitor and work for you. Enough said.
Lastly, group health insurance costs can be written off as a tax deduction to employers in CA. It is non-deductible to the employee. In the scheme of things, this makes group health insurance costs much lower to the employer. If a company has trouble paying the full cost, they can choose to pay a part of the coverage, and still get the benefit of the tax write off. It is significantly less expensive than rehiring and training because of increased employee turnover.
Small businesses aren’t just susceptible to lawsuits. There are also claim possibilities for things such as flood, earthquake, fire, loss of income, fraud, employee theft, errors and omissions, and workers compensation. It is very important to find a professional to build you a small business insurance portfolio that protects you in every aspect of your business.
Overall, it is an obvious choice for employers to offer group health insurance in California to their employees, because as shown, the benefits well exceed the costs.
