Health Insurance Can Help Your Clients Better Compete for – and Retain – Employees

 

Highlights/Key Takeaways More than three-quarters (78%) of workers base acceptance or rejection of a job offer in part on benefits. A 2017 SHRM survey found 40% of employees would consider seeking new employment. An Aflac study found 60% of employees would take a job with lower pay but better benefits. You can help your clients compete more effectively in a tightening labor market if they offer employee health insurance – helping drive more income for yourself at the same time.

 
As the job market tightens, and the unemployment rate declines, it is becoming increasingly difficult for businesses to find employees to fill vacant roles. (The national unemployment rate was 4.1 percent in January 2018, while the December 2017 California statewide rate was 4.3 percent. This represents a national rate decline of more than a half-percent in a year and a Golden State decline of .9 percent from 5.2 percent in December 2016. ) A New York Times article in January noted that companies are considering workers they previously might have turned away, including those with a criminal past, lengthy joblessness, and disabilities.

Offering health insurance benefits can help your clients position their companies more favorably, especially when a potential worker (or a current employer) is comparing job offers.

Indeed, in its 2017 survey of U.S. employers, the Society for Human Resource Management (SHRM) noted, “Recruiting difficulty has continued to increase over the last five years, and competition for talent is high. To attract and retain top talent, organizations must leverage the benefits package they offer to their employees.”

Employers are increasingly making changes to their employee benefits programs. The SHRM report found nearly one-third of employers enhanced their benefits in the prior 12 months – with health and wellness benefits most affected. Nearly one-quarter of employers (22 percent) taking part in the SHRM survey said they made health benefit changes. The most-cited reason was to remain competitive in the talent marketplace.

Health insurance benefits are a high priority for employees. A 2016 SHRM report, Leveraging Benefits to Retain and Recruit Employees, found 95 percent of employees rank health care as the most important benefit. In its own survey, Benefitfocus found 78 percent of workers base their acceptance or rejection of a job offer, in part, on an employer’s benefits package.

A previous study by Aflac found 60 percent of employees would take a job with lower pay but better benefits. Forty-two percent of employees said improving their benefits is something their employers could do to keep them in their jobs, while 16 percent said they have left a job or turned down a job in the prior 12 months due to the benefits offered.

All of this is important, because it creates a sales opportunity for you. Employers are competing for talent more today than five years ago. You can increase your income – and help your clients attract and retain workers – by helping them find an affordable employee benefits program. Word & Brown and our carrier partners offer a diverse array of health insurance options for small, medium, and large employers. We just added a new large group contract with UnitedHealthcare for large groups seeking coverage effective April 1, 2018, or later.

Whether your clients and their employees want coverage through an HMO, PPO, Health Savings Account-qualified plan, or other a multi-carrier exchange like CaliforniaChoice, we can help you match the right plan to your clients’ budget and their employees’ individual or family health care needs.

Contact your Word & Brown representative today for a side-by-side plan comparison and guaranteed accurate quote. Or, login now to start a quote for your client using WBQuote.