Small businesses are finding it increasingly difficult to offer a high quality, affordable employee benefits program to their employees.
But, if you are a small business owner or are in charge of the employee benefits program at a small business, do not worry. There are options available for you.
Over the past few years, more insurance carriers are offering more benefit options for the small business employer. These benefits are designed to accompany any “core” benefit plan options and will enable a small business to offer a complete benefits program to all of their employees.
By offering a basic “core benefit” offering which could include health and dental insurance coverage and combining it other supplemental or voluntary benefits, the employer can offer a competitive benefits program without breaking the bank. These benefits may have an employer contribution to assist in the cost of the benefit or they may be offered as an employee paid benefit only through payroll deduction or a combination on the two.
Some of the supplemental or voluntary benefit plan offerings include short and long term disability, life insurance, accident coverage, limited medical plan, dental and long term care insurance to name just a few.
The advantage for the small business is they maintain complete flexibility when it comes to the cost of the plan and how the cost will be divided. The advantage for the employee is they are allowed to pick and choose their own insurance/benefits program and pay only for the coverages they need. This creates a benefit program that is affordable to both the employer and the employee and allows both to stay within their respective budgets.
Some of the main features of supplemental or voluntary insurance plans is the small business receives simplified underwriting, a group rate to decrease costs and control in some plan designs features. The small business needs just two employees to qualify for this type of coverage.
These benefits can also be used for part time employees. As a small business continues to grow, the business can have an advantage when it enters into a growth phase and starts hiring part time employees which may turn into a full time employee. These employees can have a complete benefit program that can be carried over with them when they move into a full time position.
As keeping and attracting good quality employees becomes more and more difficult, offering a benefits program that includes voluntary, payroll deduct benefits can help employers retain and attract good quality employees at an affordable price.