Enrollment First, Inc.

Small Employer Health Insurance: The Key to Retaining Top Talent

In today’s competitive market, attracting and retaining quality employees is more challenging than ever for small businesses. Offering health insurance and voluntary benefits can be a game-changer in building a loyal, motivated workforce. But why should small employers prioritize these benefits, and how can they make a difference for both the business and employees?

The Power of Health Insurance for Small Employers

Providing health insurance is no longer just a perk – it’s an expectation. For small employers, the decision to offer health insurance can boost morale, reduce turnover, and build a strong company culture. Here’s why it matters:

  1. Attracting Top Talent
    Small businesses often compete with larger corporations for skilled employees. According to a survey by the Society for Human Resource Management (SHRM), 92% of employees said benefits are important to their overall job satisfaction. Without competitive benefits, small employers risk losing top candidates to larger companies.
  2. Retention and Loyalty
    Retention is a major concern for small businesses, where high turnover can be costly. The Work Institute’s 2020 Retention Report found that the cost of replacing an employee can be as high as 33% of their annual salary. Offering health insurance helps reduce turnover, with a study by MetLife revealing that 73% of employees who feel they have strong benefits are more likely to stay with their employer.
  3. Healthier Workforce, Higher Productivity
    Healthy employees tend to be more productive. Research from the Integrated Benefits Institute (IBI) found that illness-related productivity losses cost U.S. employers $575 billion annually. By offering health insurance, small employers can help their workforce stay healthier, reducing sick days and improving overall productivity.

Voluntary Benefits: Going Beyond the Basics

While health insurance is crucial, voluntary benefits can provide additional value to employees without a significant cost to the employer. These benefits, which employees can choose to enroll in, often include:

  • Dental and Vision Coverage
  • Life Insurance
  • Disability Insurance
  • Accident and Hospital Coverage

At Enrollment First Inc., we offer these voluntary benefit options to employer groups, large and small. This allows employers to provide a broad range of coverage without bearing the full financial burden.

Why Offering Benefits is a Smart Business Move

For small employers, offering health insurance and voluntary benefits is about more than just keeping up with the competition. It’s about investing in people and creating a positive, supportive work environment. The benefits of doing so are clear:

  • Employee Retention: Employees are more likely to stay when they feel valued and secure. A Glassdoor survey found that 79% of employees would prefer additional benefits to a pay raise.
  • Increased Productivity: A healthier workforce is a more productive workforce. The Centers for Disease Control and Prevention (CDC) reports that healthy employees are 25% more productive on average.
  • Reduced Turnover Costs: By lowering turnover, small employers can save on hiring and training expenses. The Center for American Progress estimates that replacing an employee can cost an employer between 16% to 213% of the employee’s salary, depending on their role.
  • Boosted Morale: Employees who feel supported by their employer are more engaged and motivated. Research by Aon shows that companies with highly engaged employees outperform their competitors by 202%.

A Smart Investment for Small Businesses

In a market where attracting and retaining talent is crucial for long-term success, offering a strong benefits package is one of the smartest investments a small employer can make. By providing health insurance and voluntary benefits, small businesses can not only attract and retain top talent but also create a healthier, more productive workforce.

At Enrollment First Inc., we help small and large employers design customized benefit packages that work for their unique needs. Our comprehensive options provide both health insurance and a wide range of voluntary benefits to ensure that employees feel supported, valued, and secure.

Sources
  1. Society for Human Resource Management (SHRM), SHRM 2019 Employee Benefits Report
  2. Work Institute’s 2020 Retention Report, Work Institute Report
  3. MetLife 2020 U.S. Employee Benefit Trends Study, MetLife Benefits Trends Study
  4. Integrated Benefits Institute (IBI), IBI Report
  5. Glassdoor Benefits Study, Glassdoor Employee Benefits Survey
  6. Centers for Disease Control and Prevention (CDC), CDC Workplace Health Report
  7. Center for American Progress, CAP Employee Turnover Costs Report
  8. Aon Hewitt Engagement Report, Aon Hewitt Workforce Engagement Report