Businesses and Employees Agree: Health Benefits Are Do-or-Die in the War for Talent
Despite the fact that small and midsized businesses (SMB, 1-499 employees) accounted for 80 percent of all jobs created in
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How to stay competitive? SMBs are realizing the importance of health benefits to attract the best employees and encourage them to stay for the long haul, and two studies show that employers and employees agree.
A recent ADP® study reveals that a vast majority of SMBs that offer health insurance see health benefits as a "must have" for recruiting and retaining their best employees. The study surveyed more than 600 employers at
"In order to stay competitive, small businesses need to enhance their overall compensation packages with higher wages, bonuses and, most important, health benefits," said
There are many ways SMBs can attract and retain hard-working employees, including raising wages and thanking employees for their contributions to business success.
The same research found 24 percent of small and 49 percent of midsized businesses said they intend to raise wages this year. Further, the majority of SMBs (58 percent of small and 89 percent of midsized companies) said they had plans to thank employees in this past year-end. Those surveyed selected cash bonuses as the preferred method of showing appreciation, with 27 percent of small and 40 percent of midsized companies using cash bonuses/awards.
A second study showed that "top talent" agrees on the importance of a good benefits package. In a survey of nearly 6,000 worksite employees+ conducted by
Plan costs were also identified as a primary factor considered by employees when choosing a medical plan. The three most important things worksite employees consider when choosing their current medical plan?
1. The size of paycheck deductions.
2. The amount of co-payments they owe for each doctor visit.
3. Deductibles that need to be met before the health plan pays claims.
"The cost of health insurance continues to impact employee paychecks, copays and deductibles," said
+ worksite employee's surveyed worked for employers with < 150 employees
** 50-999 EEs
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