Operating a small business can seem overwhelming at times, and finding reliable
resources to help you problem-solve can be a struggle. Online resource Manta frequently conducts surveys among their members and releases the data on their website. One such survey looked at the effect that the Affordable Care Act (ACA) had on small businesses’ profitability, growth, hiring practices, and employee retention.
A Look at the Infographic
Disclaimer: This infographic was created by Manta. The views represented in this infographic do not necessarily reflect the views of Zane Benefits, its staff, or its affiliate partners.
Fast Facts from the Manta Survey
The survey was relatively wide in scope, so be sure to check the infographic for more details. Here are some of the notable statistics from their findings.
- 59 percent of small businesses surveyed do not offer health insurance because it is too expensive.
- 17 percent say that they cannot find an option that works for their business.
- 5 percent say the process and paperwork involved is too complicated and overwhelming.
Of the small businesses that do not offer health insurance:
- 33 percent think that health insurance benefits would help improve employee retention numbers.
Of the small businesses that do offer health insurance:
- 54 percent say that offering health insurance has improved employee retention.
Specifically on the effects of health insurance on employee retention:
- 84 percent do not believe that they’ve lost any employees in the past 12 months due to the lack of health insurance, while 16 percent said this did, in fact, cost them employees.
How a Small Business HRA Can Help
While the businesses in this survey are divided on the effects of health insurance on their workforce, it is largely accepted that health benefits have a positive impact on employee retention. However, as the survey demonstrates, the cost of offering health benefits is often too high for small business owners to handle.
An important question for you to ponder is what employee turnover in your business is costing you versus how much it would cost to offer health benefits.
Many entrepreneurs don’t realize that offering benefits doesn’t necessarily mean they have to offer group health policies. Businesses with fewer than 50 full-time-equivalent employees can offer Small Business Health Reimbursement Arrangements (HRAs), allowing owners to predetermine a fixed monthly amount that each employee can use (tax-free) toward individual health insurance premiums and eligible expenses.
Small Business HRAs are a great way to offer health benefits without having to carry a group health policy. Choosing to manage your HRA through benefits administration software can even take the hassle out of paperwork, freeing you up to actually run your business.
Surveys clearly show that small businesses are looking for a viable alternative to group policies for health benefits. If you are a small business owner struggling with the decision to offer health insurance, be sure to look into Small Business HRAs. You get to offer a real health benefit while reaping the rewards of better employee retention, but without the cost associated with managing a group health policy.
Download our employee retention eBook to learn how to keep your most valued employees without breaking your budget.
How does health insurance coverage affect your employee retention numbers? Let us know in the comments below.