3 Common Myths Keeping Small Businesses from Insuring Employees

It’s no secret that small businesses have a lot to offer: collaborative cultures, less bureaucracy, more relaxed attitudes and, in many cases, they provide employees with the chance to build something from the ground up.

That said, small businesses may be lagging behind when it comes to benefit offerings. Only 46% of small business employees said their company offered a range of benefits to meet their needs, compared to approximately 75% of employees who work at mid-sized and large companies, according to the 14th annual MetLife U.S. Employee Benefit Trends Study.

Myth No. 1: Employees at small businesses aren’t interested in non-medical benefits. With much focus currently on the Affordable Care Act, small business employers may be tempted to assume that employees only care about medical benefit offerings. However, this could not be further from the truth. Dental coverage, for example, is high in demand — and highly utilized — by employees.

In fact, when ranking benefits they were interested in but did not already get from their employers, small-business employees ranked dental the No. 1 benefit after medical, according to the MetLife Study. Three-fourths (74%) of small-business employees said they were interested in receiving dental benefits, followed by a retirement plan (71%), prescription drug coverage (66%), and then vision insurance (63%).

Myth No. 2: Benefits aren’t going to be a factor that attracts and retains employees, especially in a small business. Given the robust benefit packages provided by large corporations, small-business owners may feel that their benefit offerings cannot compete in the war for talent, so they do not bother. However, small-business owners with such an opinion are short-changing their businesses, as benefits are a key to attracting, retaining and driving loyalty among small business employees.

When it comes to attracting talent, benefits matter. According to a 2014 study from the Employee Benefit Research Institute, 76% of employees state that benefits are a very or extremely important factor in their decision to accept or reject a job offer. This insight is critical for small-business owners who may find recruiting high-quality employees a difficult task. For many employers, their benefits package might be the make or break for great potential talent.

Myth No. 3: Administering benefits is too time-consuming. One of the most prevalent misperceptions about benefits is that they are too time-consuming. This belief is especially popular among small-business owners, as they tend to be the ones administering their company’s benefits, whereas larger corporations have a dedicated human resources team, or outsource all or several benefit administration functions.

With tools like the ones we provide at HIG, there’s no reason to worry. We handle the hard stuff using integrated HR software and built-in ACA reporting so that you can take it easy. We hate to see small businesses selling themselves short, so we want to make it as easy as possible at no extra cost to the small business.

via Employee Benefits News