It seems our country does a whole bunch of talking about healthcare relief for small business owners, but we don’t take much action. Providing a healthcare benefit to employees is a key issue in the war for good talent. Here’s how it stacked up in a recent survey commissioned by Aflac.
Seventy percent of small business decision-makers indicated they are concerned about their company´s ability to provide affordable health insurance coverage for employees. Two primary concerns included:
- Attracting and retaining employees, with nearly two-thirds (63 percent) of respondents reporting that they are concerned about their company´s ability to provide a benefits package that will attract and retain employees; and
- Nearly half (49 percent) agree that they cannot attract and retain top quality employees without offering competitive health benefits.
The Aflac-commissioned survey of 501 small business decision-makers indicates that respondents see a direct correlation between profitability and current health benefit offerings, with more than a third (36 percent) reporting that their current health benefit offering has negatively affected business. The top three effects were cited as: decline in profitability (24 percent), inability to attract new employees (11 percent), and loss of good employees (seven percent).
“Quality health insurance benefits are often key to recruiting and retaining good employees,” said Paul S. Amos, II, executive vice president and chief operating officer. “Because small businesses are more susceptible to premium increases, it is critical that small business owners and management are well-informed of the numerous health benefit options available.”
Six in ten (58 percent) of survey respondents agree that “it is important to financially help employees with health challenges and medical emergencies.” Among small businesses that offer some type of benefits to their employees (58 percent), an average of 52 percent of the employee base receives health care coverage, with these employees paying an average of 31 percent of health insurance premiums. While 21 percent of these employees pay zero percent of health insurance premiums, 63 percent pay half or more. Additional key findings from the survey include:
- Nearly half (46 percent) of small business decision-makers report that increasing health care costs have negatively impacted their employees´ wages.
- Approximately four in ten (38 percent) have taken some action around their benefits last year and one-third (34 percent) anticipate taking some action in the coming year.
- Four in ten (42 percent) of those surveyed agreed that annual increases in health benefits have made them decrease their offerings.
- Fewer than one in ten (seven percent) of small businesses currently offer Health Savings Accounts (HSAs) to their employees.
- Of those small business decision-makers considering implementing HSAs, 73 percent indicated that giving their employees more options was the primary reason.
For more information about the survey visit Aflac. And don’t forget to contact your legislators to let them know a resolution to the small business healthcare issue is critical to your business survival.