Your employees drive your business forward, and your ability to help them stay physically, mentally and financially well is a crucial tool for your company. (Photo: Shutterstock)
As renewal time rolls back around, many business owners may have found themselves frustrated once again at how much money they were spending on high-cost, low-quality benefits. Even though another year of overly expensive benefits may be the last thing business owners want to pay for, many feel like they have no choice but to stick with their contract for the next twelve months. The truth, however, is that breaking your contract early could be one of the best decisions you could make for your business this year.
While carriers aren't allowed to break the contracts they have with benefits recipients, the reverse isn't true. If you're unhappy with your current benefits plan, you can break your contract and work with an advisor who can help you take control of your plan and cut costs. By examining your options now rather than waiting until your renewal, you can save tens of thousands of dollars over the course of just one year while creating a healthier, happier workforce.
|A change that pays for itself
The Society for Human Resource Management (SHRM) reports that benefits costs are expected to hit $15,000 per employee in 2019. Given that this is the sixth year in a row that costs have risen 5 percent or more, you can expect to continue paying more and more for benefits over the years if you don't make a change.
Consider how much you could save in one year alone by choosing an innovative adviser who cares about building a better benefits plan for you. Between efforts to reduce direct costs (such as by encouraging employees to go to outpatient surgery centers instead of expensive hospitals) and the residual effects that result from high-quality, low-cost benefits (such as lowering costs associated with replacing employees), the savings you can get from a new and improved benefits plan can add up to tens of thousands of dollars in just a year.
The savings you glean in just months from a more cost-effective benefits plan can then be used to improve your business. Think about how updated technology, building renovations, or new equipment could help your company grow. You could also give that money back to your employees in the form of bonuses or higher wages. There are countless opportunities for growth hiding in your benefits plan, and there's no need to wait another year to unlock them.
|The value of satisfied employees
Your employees drive your business forward, and your ability to help them stay physically, mentally, and financially well is a crucial tool for your company. If you're considering waiting another year to make big changes to your benefits plan, ask yourself how your benefits plan could positively or negatively affect your workers (and, in turn, your business).
An expensive plan that offers comparatively low-quality benefits can send employees searching for an employer who can provide them with better options. According to numbers released by the Center for American Progress, this can result in a total cost of $50,000 if you lose just five mid-level employees in a year. Think also about how likely your employees are to require healthcare for themselves or their family this year. Does the nature of their job make them more susceptible to injuries that would require surgery? Are any of them expecting a new baby? An improved benefits plan can ease the strain of a stressful time in your employees' lives, increasing their satisfaction with their job while helping them get back to work sooner.
|A resolution that gives back
Just one year of an improved benefits plan can have a drastic impact on your business. By taking control of your plan, you can save your business tens of thousands of dollars while creating a better experience for your employees.
Contact me today to learn more about how leaving your old benefits plan behind can make this year your best one yet.
Read more:
- Delivering a values-driven, cost-effective benefits experience
- Demystifying benefits spend: How data analytics can help
- Up-and-coming brokers and carriers: Where's the connection?
Jim Blachek is co-founder of The Benefits Group.
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