Employee retention is a cornerstone of healthy organizations, and health insurance plays a significant role in keeping your team healthy and happy. There are a few different approaches to covering healthcare for large companies, but group insurance plans offer the most value.
Before you compile a list of potential health coverage options, review these critical reasons your organization should invest in group insurance plans.
3 Reasons Your Organization Needs Group Insurance Plans
Some large companies provide their employees with a premium credit so they can purchase individual insurance plans. Group health insurance, though, might be a better choice for your business.
1. Employee Success
There is a substantial cost to employee turnover. When someone leaves your company, it can cost 33% of their annual salary to replace them. That means it’s in your organization’s best interest to keep your team satisfied. A solid health insurance package is one way to boost your employee’s salary package and, ultimately, their morale.
Studies show that nearly a quarter of all people intend to leave their job within five years of starting it, but 25.1% of them could remain with a better benefits package.
2. Consolidate Expenses
Some HR managers with mid-size and large businesses put together a benefits package that includes multiple healthcare components rather than investing in group insurance plans. This can add to your overhead costs because of additional service and setup fees. It can also increase the amount of administrative work for your team.
Instead of offering FSAs and premium stipends, large organizations can take advantage of group insurance plans to consolidate their benefits and expenses.
3. Tax Deductions
Most businesses are looking for ways to lower their tax bill, and health insurance is one effective way to do that while also adding value to your team. Large organizations can write off their health, disability, and life insurance contributions. These deductions even extend to your employees in certain circumstances.
Premium contributions are taken out of your salary before taxes, so group insurance plans can help lower your employees’ taxes, too.
Tips for Streamlining a Change in Group Insurance Plans
Whether you are just offering health insurance for the first time or you’re trying to implement a new benefits package, setting up group insurance plans can take experience.
Use these tips to streamline your group health insurance process:
- Inform your employees: Depending on the number of plan options you’re offering, your employees will need time to review the choices. Give them plenty of notice to make that decision.
- Notify your payroll admin: Change your payroll deductions so your employees will see the correct information when you switch. Also, ensure that you turn off any old health deductions.
- Update pertinent information: Your employees will want to receive information as quickly as possible. Proactively give them a chance to update their contact information.
It might feel like switching 200 people to a new group health insurance plan is tedious, but these tips can make the process simple so your business can take advantage of the benefits.
Get Professional Help Choosing New Group Health Insurance
If you’re unsure of where to start looking for group insurance plans, talk with a professional. Insurance professionals have access to dozens of plan options and can help narrow down the best choices for your business.Ready to get started with group health insurance? Contact HRBC Insurance to find the best policies for your team.