According to numerous studies, health insurance consistently ranks as the top employee benefit, so small business owners should focus on offering health coverage primarily.
Additionally, it’s important to know that you are offering benefits that your employees actually care about, since you’ll be spending your money in a smart way on benefits. You may also help bolster the company culture at your small business by better understanding your employee’s needs.
Continue reading to find out why health insurance is one of the top employee benefits for small businesses, as well as how health insurance may contribute to company culture.
What are the most popular employee benefits?
Many recent surveys have found that health insurance stands out as the most popular and desirable of work benefits.
- According to a Fractl survey, health, dental, and vision insurance are the most desirable employee benefits, with 88 percent of the survey’s respondents saying they would give these benefits “some consideration” (34 percent) or “heavy consideration” (54 percent) when choosing between a high-paying job and a lower-paying job with better benefits.
- According to a Glassdoor survey, nearly four in five, or 79 percent, of employees would prefer new or additional benefits to a pay increase. The survey found that 40 percent of respondents valued health insurance benefits (such as medical and dental plans) more than pay raises.
While other popular work benefits include flexible hours and more vacation time, the message is clear: health insurance matters most to employees.
One of the main reasons health coverage is important to employees is that small business health insurance may often be more affordable per person than individual health insurance plans. With access to lower premiums and deductibles on average, it’s easy to see why group health insurance is one of the most sought-after benefits.
Yet health insurance can mean more than just medical coverage: it may convey that workers are highly valued by their employer in a proven, concrete way.
How can relevant benefits help build company culture at a small business?
Company culture isn’t just a slogan or a mission statement. For your customers as well as your employees, company culture represents what your small business stands for, while also helping form your brand identity, practices, and values.
Making sure that you are offering benefits that your employees really care about can help promote a positive company culture at your small business by demonstrating that the health of your workforce is important to you. For instance, small business health insurance may play a significant role in building company culture in several important ways.
- Job satisfaction and retention – With such a popular benefit as health coverage, employees are more likely to be satisfied with their jobs and to show loyalty toward their employer, which contributes to a developing a more positive company culture.
- Productivity and engagement – Healthier employees are more likely to be productive, engaged, and less absent, which ends up benefiting both the overall company culture and the employer.
- Stability and assurance – Offering health insurance can be a sign that a company prioritizes stability and continuity, and it may also give peace of mind to employees while providing them with an enhanced sense of job security.
Another way to cultivate a positive company culture could be establishing a reputation as an employer who is responsive to the needs and preferences of their employees, especially in terms of benefits.
According to a MetLife survey:
- 74 percent of employees say that having benefits customized to meet their needs is important when considering taking a new job.
- 72 percent of employees say that having the ability to customize their benefits would increase their loyalty to their current employer.
While you should always talk with your employees to find out what benefits they prefer, it’s a safe bet that health insurance coverage will probably rank highly on their list.
Finding affordable small business health insurance plans
eHealth can help you find the right group health insurance coverage for your small business. As the largest private online health insurance marketplace, we give you access to free small business health insurance quotes and side-by-side comparisons of health plans available from multiple leading insurance companies in your area.
Visit eHealth.com or speak with one of our licensed agents today.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.