Given the high operating costs associated with doing business in the San Francisco area, small business owners have to be very careful about their spending to be successful. Specifically, small business owners may feel wary about offering their employees’ health benefits when not required to do so by law. However, there are some major advantages available to companies that provide their employees with a plan from a health maintenance organization (HMO).
- HMOs Attract Great Talent
According to a survey conducted by National Business Group on Health, 87 percent of workers view health benefits as a determining factor when making career decisions. As such, employers that provide their workforce with an HMO option have a decided advantage over those that do not. When it comes to recruiting great talent in today’s marketplace, companies need to offer HMO plans as part of their standard compensation package if they wish to remain competitive.
- HMOs Increase Job Satisfaction
As businesses take major hits in productivity and profitability when they unexpectedly lose key team members, smart owners know to prioritize job satisfaction. As this Glassdoor study uncovered, health benefits are the key factor when it comes to employee satisfaction. For today’s workers, a quality health plan is more important than raises, vacation days, and 401(k) plans. Consequently, owners need to provide the kind of comprehensive coverage offered by an HMO plan or risk losing their best performers.
- HMOs Improve Employee Performance
Since health benefits have been proven to increase employee job satisfaction, it’s not surprising to learn that studies have shown that satisfied employees are better performers. This is because happy employees come to work more energized and more focused. As a result, they are considerably more productive. Conversely, dissatisfied staffers only spend 40 percent of their time working on their assigned tasks.
- HMOs Reduce Sick Days
According to the Centers for Disease Control and Prevention, U.S. employers lose $225.8 billion in worker absenteeism every year. When employees call in sick, their job performance suffers. The US Department of Health and Human Services has reported that workers with health benefits are less likely to miss work than those with no coverage.
- HMOs Boost Business’ Bottom Lines
Lastly, the U.S. government offers a significant enticement for small businesses that offer HMO plans to their employees and their dependents. The benefits are two-fold. First, employer contributions to health insurance premiums are tax-deductible. Moreover, companies that employ less than 25 full-time workers and provide health insurance for them could be able to take advantage of the Small Business Health Care Tax Credit, which is worth 50 percent of paid health insurance premiums. Therefore, there is a tangible financial benefit for employers to invest in an HMO plan.
Canopy Health is a community of caregivers creating an integrated healthcare experience where quality care and coverage are provided by an alliance of top caregivers throughout the Bay Area. They offer refreshingly clear, human care that is achieved by making each unique member’s journey predictable, transparent, and cost-effective.
For more tips and inspiration for small business owners, visit Small Business Pulse SF Bay Area.