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4 reasons to offer employer-sponsored health coverage

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Whether you have 10 employees or 10,000, it’s essential to offer health coverage in today’s employee-centric market. Workers are demanding more now than ever before. And if they don’t feel valued, they’ll look for work elsewhere. Adding health coverage to your benefits package may be the competitive edge you need to keep your current employees satisfied and attract new talent.

Here are 4 reasons you may want to offer health coverage:

  • Attract top talent — 82% of employees feel a company’s benefits package is an important factor in whether or not to accept a job.1 When you’re competing for top talent, health coverage is a must. In fact, 98% of businesses offer coverage to stay competitive in the hiring process.2
  • Increase retention — 3 of 4 of employees say that their health benefits impact their decision to stay at their current job, and 69% say health coverage gives them financial peace of mind.3 When you care for your employees’ well-being, they feel valued and are more likely to stay.
  • Get tax advantages — When you offer coverage to your employees, you can deduct 100% of the costs. Businesses with 25 or fewer full-time-equivalent employees may also qualify for small business tax credits.
  • Earn a high return on investment — For every $1 invested in employee health care, employers get an average return of $1.45.4 Increased productivity provides the greatest ROI. Healthy employees are good for business.
Health care is ranked the number one most important benefit that a business can offer employees.

Investing in the health of your workforce will build a healthier future for your employees and your business. But it’s the feelings of loyalty and satisfaction that can keep your business moving forward — especially if you’re relying on just a handful of trusted employees at work each day.

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12022 Employee Benefits Survey, The Society for Human Resource Management, June 12, 2022.
2Employee Benefits Survey Analysis: Part 1, PeopleKeep, Inc., 2022.
3Employer-Provided Coverage Perspectives and Priorities, Locust Street Group, 2022.
4Return on Investment for Offering Employer Sponsored Insurance, Avalere Health, June 29, 2022.