Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
Brian Dawood,
Assurant Employee Benefits:
952.285.6128
br**********@******nt.com
www.assurantemployeebenefits.com
EACH DAY can be a battle for small to mid-sized employers. They can face constant attacks from larger competitors on many fronts, including price points, technological capabilities and even benefits offerings, which are key in helping attract and retain quality employees.
Not surprisingly, smaller businesses generally offer less extensive benefits plans than their larger counterparts. But the gap may be greater than you think.
The 2007 National Compensation Survey reported small to mid-size businesses offer significantly fewer benefits than larger employers. A couple of startling survey findings:
Are smaller employers overwhelmed by the options, maybe even intimidated by the perceived cost of employee benefits? It’s important that smaller employers understand the value of offering benefits options in the workplace.
By not offering benefits, such as disability and dental insurance, smaller businesses can fall behind in the benefits race against their larger competitors. The good news: Companies on a tight budget have a fighting chance.
According to a survey conducted by the Employee Benefit Research Institute (EBRI) in 2001, a whopping 77 percent of workers reported that the benefits a prospective employer offered were very important in their decision to accept or reject a job. One sought-after offering is dental coverage, which, according LIMRA International, is the most desired benefit after medical insurance. Research indicates that the need for it is very real.
Over the past few years, evidence of a connection between oral health and general health has continued to mount. According to the National Institute of Dental and Craniofacial Research, studies indicate that periodontal disease, a bacterial infection of the gums and the bone that support the teeth, can be a contributing factor to significant general health problems including heart disease, stroke, diabetes and low-birth-weight or premature babies. The savings that a good dental plan can provide for a health insurance renewal may be significant.
Regular preventive dental care can help employees avoid periodontal disease and those with dental coverage are more likely to seek such care.
Another coveted benefit is disability insurance. Unfortunately, small-business owners may not know how often disability can occur. The Council for Disability Awareness offers the following information:
Given these statistics, it’s no surprise employees can be attracted to companies offering benefits options beyond traditional health insurance.
Although it is sometimes difficult for smaller businesses to provide the same level of benefits, there are affordable dental, disability and life insurance options that can level the playing field. Small employers should work with their benefits brokers to identify a carrier that specializes in providing solutions to smaller groups and can help determine what best meets their particular needs.
For example, a dental plan designed to help contain the cost of chronic health conditions and help avoid serious ones can be a wise investment, particularly for smaller businesses that can be more severely affected by absenteeism.
A plan that covers preventive and diagnostic procedures, that is affordable and easy to administer, and that has an extensive network of dental providers can be key in getting employees into the dentist’s chair on a regular basis. That may help reduce employee sick days and expensive medical claims.
As many American families continue to live paycheck to paycheck, income protection becomes a valuable benefit for all employees and their families when the unexpected happens. Group short- and long-term disability plans provide an efficient and affordable way for a business owner to protect his or her own income in the event of a disability, and also provide protection for employees.
It is important to note that disability benefits also can help protect a business if one of its owners or key revenue generators becomes disabled.
The ability to protect their family even after they’re gone is important to many employees. Group term life insurance is an affordable and attractive benefit that can provide employees with peace of mind.
In the event of an untimely death, life insurance benefits can help with immediate financial needs such as funeral expenses and debts, and also can help survivors maintain an established standard of living in the long term. Life insurance can be used to help with a family business, help fund future needs such as a child?s education, and help protect a surviving spouse’s retirement plans.
Voluntary group insurance plans are a flexible and affordable option for smaller employers on tight budgets. Because they are 100 percent employee-paid, cost to the employer is reduced to only administrative expenses.
While these plans are funded by employees, by signing up as a group, they receive affordable group rates that are paid through payroll deduction. Additionally, group voluntary benefits may be the only coverage available for employees who are ineligible to purchase individual insurance. These types of plans are available for a variety of coverages, including dental, disability and life insurance.
With the help of knowledgeable benefits brokers, small-business owners should have no trouble finding a carrier that can provide a wide range of ancillary benefit plan designs and funding options that meet their needs. That will allow them to successfully compete in the benefits race.
