It’s easy to be complacent about your workers. You may be thinking they’re already working for you and are happy to keep doing so. But the truth of the matter is, employment is a commitment that could change at any time.
The assembly plant of one of the greatest industrialists that America has produced, Henry Ford, should show us how important taking care of employees is to an entrepreneur. In 1941, workers at the Ford Motor Company went on strike. Their concern was that they wanted to unionize, but Mr. Ford (who was way past his prime) refused to recognize the establishment of such union. It was rather odd as Ford Motors was the only major auto company that had not done so at the time. After 10 days of boycotting with no work done, Mr. Ford relented, allowing all members to be part of the union, and more: union dues can be deducted right from the payroll.
This event certainly goes to show how crucial it is to look out for employees. The good news is if there’s one benefit that may matter most to your staff, it’s health insurance. What’s more, giving your people the health insurance they deserve does not only mean healthier workers, but it’s also going to save you a lot more in the long run.
It’s a Cinch
When Ford capitulated and signed his first contract with an autoworker union, he gave his employees better terms than any of his competitors could. First, he gave the highest industry wage rates and paid back wages to 4,000 wrongfully discharged workers.
You might also feel you’re wasting money when engaging your workers with health insurance. However, the opposite is true. For starters, it’s easier than you think. There are health insurance brokers whose main job is to guide you throughout the whole process.
Choosing what plan is best for your team and is tailored to your preference and your industry shouldn’t be an uphill climb. The agent should be able to set things up, giving your employees a breakdown of the benefits of one.
Savings for Employees
Even better, your workers will rack up savings when you roll out health insurance for everyone.
With insurance being available for everyone, your workers won’t have to shoulder the financial burden in cases of serious accidents or possible sickness. This is especially true in the time of the pandemic. Medical costs can easily skyrocket. This is why many hospitals are finding ways to maintain lower fees to help patients receive the care they need.
At the end of the day, of course, quality care matters. Fortunately, hospitals are doing their best to equip themselves with state-of-the-art machines and tools, such as the ever-reliable Medrad CTP-200-FLS high-pressure syringes. These syringes ensure patient exams (angiography and cath labs) are conducted as effectively and efficiently as possible.
Most importantly, when workers buy health insurance on their own, they’ll have to make use of post-tax dollars to make it happen. That means they use money that’s taxed by the government.
But with group insurance through your company, employees pay for that insurance using pre-tax dollars. That saves them on the horizon of 30 to 45 percent on their insurance premiums.
Savings for Employers
If you’re thinking it’s all about expenses, bear in mind that there are tax savings when you offer group insurance. These include:
- Tax-deductible employer contributions
- 7.65% deduction of employee contributions on employer payroll taxes
- Employer compensation premiums on workers are greatly reduced
By allocating money on health benefits and not on higher salaries, you save money because you need not pay worker’s compensation premiums on said money for a worker’s health benefits. The same holds true for payroll taxes.
Plus, it’s also what workers want. A Glassdoor study shows 80% of employees would rather have health benefits and other perks than getting a salary raise.
Greater Productivity
The best part is you save a lot more when you offer group health insurance because your overall productivity rises. When employees know they are taken care of and that they’re safe, their desire to achieve more also increases.
A study done by MetLife pointed out that 60% of employers concluded that getting group health premiums made their productivity soar. This indicates that the money you invested will give you better returns.
By providing your employees with health insurance, you know that they are as healthy as you need them to be and that they’re prepared in case of more serious illnesses. Preventive measures, such as regular check-ups and doctor visits, encourage a healthy lifestyle. The healthier your workers are, the better your production will be.
Overall, it’s a win-win situation for you and your employees. With the proper health insurance and benefits, your workers are healthy and happy while your company moves forward more rapidly and efficiently than it used to be.
