Worth the Price Tag - Benefits of Health Insurance for Small Businesses

Owning a small business can be a wondrous and rewarding experience. But it does not come without its challenges. Many of them come down to budgets and finances. One way small companies tend to cut back on finances is by skipping out on providing their employees with health insurance options. This can be a critical mistake, however, as health insurance is a major motivating factor for talent at all experience levels today. And in today's competitive job market, attracting and retaining top talent is already challenging enough. Offering health insurance to your employees, even if it does come with a significant price tag, is a key strategy in ensuring that you stand out amongst the many employers your talent may be courting. But providing health insurance has numerous advantages for your small business beyond simply standing out. Let’s explore them below.

Improved Employee Morale and Productivity

When employees have access to healthcare, they are more likely to be physically and mentally healthy. This translates to reduced absenteeism, increased productivity, and a healthier and more positive work environment.

Legal Compliance

While small businesses are generally not required to offer health insurance, the rules and regulations regarding healthcare benefits can be complex. By providing health insurance, you can ensure your business is compliant with applicable laws and avoid potential legal issues down the road.

Tax Benefits

Small businesses may be eligible for tax benefits when offering health insurance to employees. Depending on your location and the size of your business, you may qualify for tax credits that can offset the cost of providing healthcare benefits. Check out this resource to find out if your business can qualify for the associated tax benefits.

Enhanced Employee Loyalty

Offering health benefits can foster a sense of loyalty among your employees. When workers feel that their employer cares about their well-being, they are more likely to remain loyal to the company and contribute to its success in the long run. And keep in mind, the cost of regularly losing employees (due to them seeking health insurance elsewhere, let’s say) is certainly more expensive than providing health insurance options from the start. Additionally, providing health insurance is a tangible way to demonstrate your appreciation for your employees, showing them that they are valued members of the team.

Competitive Advantage

Not only do you gain competitive advantage in the recruiting process, but offering health insurance can also give small businesses a competitive edge when bidding for contracts or partnerships. Some clients or collaborators may prefer to work with businesses that provide healthcare benefits to their employees, viewing it as a mark of stability and reliability.

In conclusion, providing health benefits to employees is not just a kind gesture; it's a strategic move that benefits both your small business and your workforce. It helps attract and retain top talent, enhances employee morale and productivity by creating a healthier workforce, ensures legal compliance, offers tax benefits, fosters loyalty and appreciation, and gives you a competitive advantage. While it entails costs, the long-term benefits far outweigh the initial investment. So, if you want your small business to thrive in today's competitive landscape, consider offering health benefits to your employees – it's a decision that pays off in more ways than one.

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Talent Tap Trends & Insights | Lancaster, PA

Bad Hires - When It's You, Not Them

By Bernadette Hill • February 12, 2025

You’ve read the first two blog posts about bad hires, think you have things locked down, made the hire of your dreams and then everything begins to go wrong. Employees aren’t motivated, the work is beginning to suffer and what was once a well-oiled machine becomes something akin to the Titanic. Time to follow up on my second post about what to do with a bad hire? Maybe. It could be the new person that you introduced into your tightly controlled world or, and I say this with all due respect: It could be you. It shouldn’t come as a surprise to anyone that a toxic environment can be created from the top down in an organization. Here are just a few things that you should be aware of; consider them warning signs: You’re sending out emails in all caps Staff turnover is at an all-time high Everyone shuts up when you walk into the room Enjoying the job has become just surviving the job A few of those get your heart racing a bit? It’s ok, I promise. Just take a step back and realize that everything is correctable if you catch it in time. As HR professionals we recognize that even the greatest of hires can be tainted by a work environment that is, for lack of a better word, hostile. If you find yourself inadvertently breeding one of those types of places, here are a few things that will help pull your hind parts out of the fire. Perform A Cultural Audit Translation: Now is the time to step back and evaluate the culture that you are creating. Are you aiming for professional? Competent but relaxed? Open? Closed door, hush hush and all that? You need to know what you want and be objective in reviewing what you see before you. Ask Your Employees This one is a bit tricky because you’re putting yourself on the line and your employees on the spot. Ensure that this can be done anonymously if they so choose. Find out why they work there, what makes them tick, what they like and what they detest…leave nothing in the shadows. Hire An Outside HR Rep For A Consultation (Hi!) An objective third party is likely going to have an easier time looking at your organization and recognizing challenges that need to be addressed than you are. Don’t be offended, it’s just the way of things. More often than not, employees will actually relish the chance contribute to change and respect you even more for recognizing the need for it. Be genuine in your actions and reasons and you’ll be that much closer to creating a workplace where people want to perform to the best of their ability.

Dealing With A Bad Hire

By Bernadette Hill • January 20, 2025

Let’s imagine a world where you missed out on Talent Tap’s last blog post, “Avoiding a Bad Hire”. Such a place would be truly scary, but let’s just say that it happened and well, you’ve ended up with a less than desirable employee. Fear not! We’re here to help. The light at the end of the tunnel isn’t really an on-coming train. There is good news to be had: a bad hire is just one dimension of a business. Look at it this way, there are a myriad of business decisions that can take a nose-dive and people still stuck it out. Look at “New Coke”. That stuff was terrible and while Coke took a little heat for it, they soldiered on. You’ll do the same. Like many disaster recovery plans, the first step is to admit that you have a problem. Fall on the grenade and get it over with. Why? Numerous studies have shown that sweeping the issue under the rug is only going to result in more pain later down the line. Once you are ok with saying “I hired incorrectly” out loud, you can figure out what kind of bad hire you’re dealing with: The “No Momentum” Hire: 1) The new person starts of strong and makes an immediate positive impact…for about six months. After that, you’ll start to have an “ok” employee who falls short of initial expectations. The “Immediate Disaster” Hire: 2) The newbie proves to be a disaster from the get go for any number of reasons – personal baggage, rude, no respect for deadlines or time, or is just flat out dangerously incompetent. The “Wrong Seat On The Bus” Hire: 3) The new hire is pretty much in the wrong position in terms of competencies, experience or cultural fit. This one can be realized by both the hire and the company. Now what? Well, that’s up to you. Let’s skip over #1 for now and move right to #2. Typical wisdom is going to tell you to sever the relationship ASAP. And typical wisdom is right. Don’t let a bad hire ruin what you’ve worked to build. Harsh, but true. As for #3, this one is a bit interesting. It may very well not be the employee’s fault here. Sometimes things are just mismatched from day one. Take the time to sit down with him or her and work out if there is a better position, in terms of fit, within the company. These folks can turn into valuable employees if you take the time to align competencies with your needs. Also review your recruiting, onboarding and training processes. Do you need a more defined job description, screening/interviewing process and/or position scorecard? Onto #1 we go. This can have one of two outcomes, really. First, a conversation about expectations and goals could correct the slipping and everyone will be happy. Second, it can turn out they really just don’t want to work there anymore and in that case, it’s time for you to end it and recover what you can. How have you all handled bad hires in the past? Any techniques that have worked out for you better than others? Please, share with us in the comments below. Up next: What if it’s you and not them?