small Business Employee Benefits

By: Jessica Welker (Zane Benefits) May 2015

Small business owners are constantly analyzing and evaluating their budgets and bottom lines. Sometimes you have to cut back on certain things here and there. Other times, you add something to the budget in an attempt at a long term return. It may be tempting to opt out of providing health benefits, but there’s long term value in offering them. This article outlines the ways adding health benefits can actually create more value to your small business.

To Offer Health Benefits, or Not?

The Affordable Care Act, also known as Obamacare, has created challenges as well as opportunities for offering health benefits. The law has, in some cases, caused health insurance premiums to rise, which in turn puts pressure on the bottom line. As a result, the majority of small businesses (with fewer than 50 employees) do not offer health insurance today.

But, opting to not offer health benefits may be shortsighted. Health benefits can be a powerful recruiting and retention tool, and can help small businesses compete with larger corporations for top talent. After all, employee retention is one of the most critical strategic assets for any small business.

As you can see, whether to offer health benefits is not always an easy decision.

By taking a broader and more long-term approach to healthcare and other employee benefits, you can change the way you compensate employees, how you retain talent, and ultimately, how you maximize profits.

Value of Employee Benefits

The point here is that employee health benefits may just boost the value of your company. They are a valuable asset.

Offering a more robust set of benefits, one that is portable, customizable, and affordable, will set your company apart from the competition and will create higher quality employee recruitment and longer retention.

A Smart Way to Add Benefits – Premium Reimbursement

One example of a smart and cost-attainable employee health benefit is a Premium Reimbursement Arrangement. This type of plan is gaining momentum among small and medium-sized businesses because of its affordability. With a plan like this, you can reimburse employees for individual health insurance premiums, instead of contributing to an expensive group health insurance plan. The business offers employees a monthly healthcare allowance to use on individual health insurance – it’s that simple. The average cost savings is 20 percent to 60 percent.


As your small business navigates whether to offer health benefits, or not, consider the value employee health benefits may add to your recruiting and retention efforts, and to your company value as a whole.

Zane Benefits