While some argue that it should be a requirement of employers to provide employees with healthcare, the fact remains that many businesses do not do so. This could be caused by a range of factors.
Perhaps they financially cannot afford to do so, maybe it’s something they’ve been meaning to work out for quite some time, or it could be something that they avoid because they simply don’t understand it.
It’s easy to understand why cost may be a factor, since it can cost more than $18,000 to insure a family of four under a group policy, which denotes a 350 percent increase to that figure since 1999. The prospects for that cost don’t look good, either, as by 2025, that figure is expected to reach nearly $25,000.
In today’s article, we’re tackling the topic of how much a failure to provide health insurance for employees could cost companies in unexpected ways. Keep reading to learn more!
It’ll cause star employees to leave
Of course, this isn’t a guarantee. But, it’s pretty likely that if you stop offering group coverage, your office will lose some valuable team players.
The Employee Benefit Research Group noted that more than three-quarters of job seekers say benefits are “very important” when considering a job offer, and a whopping 69 percent say they might choose one job over another if it offered better benefits.
Furthermore, close to 60 percent of those surveyed state that benefits are among the top reasons they’re loyal to their employer. Those numbers are staggering, and they simply cannot be avoided.
So what does that mean for your business?
According to a financial services provider called Principal, organizations that don’t offer benefits see over four times the normal rate of voluntary turnover (i.e. people quitting).
Furthermore, for each employee that leaves your company, it’ll cost an average of six to nine months of their salary in recruiting, hiring, and training costs. Those numbers are bound to add up quickly if you have a mass exodus from your business.
A feasible solution
You’re probably now wondering what a good solution is that won’t cost your business a boatload of cash while it simultaneously permits your employees the benefits they rely on.
Direct Primary Care (DPC) is a happy medium and a great option for employees, as it gives them and their families the freedom to seek medical care whenever it’s needed for a low monthly cost. This means less cost to your business while keeping your employees covered.
To learn more about how you can keep your employees happy and your business operating in an efficient manner, call us today!