Offering Health Insurance Benefits Employers Over Long Term

Health Insurance used to be considered a standard part of the benefits packages that employers offered employees when hiring. That allowed the insured employee to feel secure in knowing that they, and members of their family, would receive necessary medical care without having to worry about cost. It also assured employees that they could get the routine preventive screening that is so important to overall health maintenance.

When Companies Fail to Look at The Bigger Picture

Countless companies, including Home Depot, who announced in September of 2013, that they would not be offering insurance to 20,000 part-time employees, forcing them to buy health insurance on their own through their respective state's health insurance exchange.

These companies are not looking at the long-term picture, to see that without health insurance, by offering a benefits package that includes health insurance, even if the employer is contributing, or sponsoring the group, and an employee has to pay the premiums, employees are less likely to stay with a company.

A company should look at the broader picture and what it gets in return.

  • Higher quality employees and higher employee retention rates.
  • Healthier and more productive workers – which means a fewer absentees.
  • Happier in their jobs, which translates into company loyalty, better job performance and more willingness to take on responsibilities without prompting.

Many companies suffered a real financial blow because of the recession, and small businesses experienced the greatest impact. It may be easy for company executives and financial officers or advisors to ignore the effect that not offering some type of health insurance program will have on their employees.

If they really want their companies to grow and succeed, then they need to care about the welfare of their employees. Are the short-term financial savings worth losing long-time employees and having to deal with the consequences of high employee turnover rates – training new employees over and over? In terms of what's best for a company and its employees, the answer should be an unequivocal "no."

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Further Reading
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