Benefits Are More Than Just Medical Insurance

Many small to medium sized employers think that if they offer only medical insurance that they are keeping their costs down and that they have a benefit package to offer their employees. Yes and no!

Yes, it is better than nothing but the business is competing for employees with larger companies that offer more choices. So, with that in mind consider the cost of turnover. Department of Labor states that the cost to replace an employee is 1/3 their annual salary, that means it would cost $6,933 to replace a $10 per hour employee. If you can keep one employee from leaving because of a better benefit package, how much will you save? How much better will your customer service be? Will you increase customer loyalty?

In addition, most larger company offer addition benefits that are paid for by the employees thru payroll deduction. Guess what, as a small business owner you can do the same thing. Offer your employees plans such as disability, life and other plans that provide the employee protection for them and their family and now you have a more complete benefit package. Also did you know that if your employees choose these plan that you might be able to pre-tax the deduction, which means the company can SAVE some money on their portion of payroll taxes.

To learn more about how you can increase your benefit package, please contact me at 916-677-2130 ext. 101.