Group Benefits

 

Overview

In its broadest form “group benefits” may be considered anything you provide an employee (other than a paycheck) in return for working for your company.  In a narrower definition group benefits are generally considered things like insurance and retirement plans. 

Group benefits are becoming an increasing important tool in attracting and retaining top talent for small businesses.  Although the current unemployment situation may provide employers a large selection of employees to pick from, this situation won’t last forever.  As the labor market tightens up and competitors start recruiting and hiring, an employee looking for better opportunities may be the small business owner’s first causality. 

It is our opinion that employee benefits by themselves are not the only thing that keeps top talent from looking elsewhere.  But it is certainly a part of the complex cog that makes up a business’s people strategy.  Maintaining a well trained, productive work force is crucial in creating and maintaining a long term profitable business.  Constantly recruiting and re-training a new employee to replace a current position may keep a small business owner from growing and attracting customers.

Consider the following:  when an employer with forty employees loses two employees it may hurt a little. It’s a five percent reduction in their work force.  When an employer with five employees loses two employees, it’s a forty percent reduction in their workforce, almost one half.    

Options

The options available for a small business have never been greater.  Now small business may be able to offer a benefit package that competes with even the biggest employers.

The following group benefits may be offered on groups as small as 2 people.

»  Health Insurance
»  Dental Insurance
»  Life Insurance
»  Short and Long Term Disability Insurance
»  Vision Insurance
»  Long term Care Insurance
»  Retirement Plans

Small business can even offer a “cafeteria plan” or section 125 plan to save money on payroll taxes.

Advantages of Offering Group Benefits

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May help attract new employees
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May help retain good employees - thereby reducing turnover
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May help employees who get sick, offset the high cost of health care & return to work quicker
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May create a more productive work force
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Group health & dental benefits are generally more comprehensive then individual plans
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Group Insurance premiums may be a tax deductible business expense

In summary a well thought out group benefits package may be the edge a small business needs to attract, retain and create a productive workforce.

To learn about general requirements for offering group benefits and the different ways to pay for the premiums click here.

Have a Question? Feel free to call us at 405. 720.0333