Combining Employee Motivation Programs and Health Insurance Plans

Many small businesses have crucial decisions to make concerning health insurance. Unfortunately, offering comprehensive health insurance plans to employees can cost a small business a lot of money each year. The business will have to struggle to pay their bills and maintain a healthy bottom line. If a small business chooses not to offer a health insurance plan, they may risk losing valuable employees.

An overwhelming 95% of small businesses will fail in the first five years, according to the Small Business Administration. This is due to many different factors, including lack of interest in the product or service being sold, financial burden, taxes, unforeseen costs, and startup costs. Adding the cost of health insurance for even two or three employees can send a small business into bankruptcy. Small businesses have to find other ways to offer benefits to their employees so that they will remain loyal to the company. But these days with rising health care costs, many employees need the security of knowing that they have health benefits through their employer.

Types of Health Plans

Small businesses have options when it comes to offering small group health insurance plans. They can take out indemnity policies that would require employees to pay for medical costs up front and then be reimbursed. This form of health is the least expensive, but unfavorable to employees who cannot afford to pay out of pocket expenses. Another alternative is to offer employees a basic health care package that will cover hospital and some prescription costs. Again, this will cost employees more money. HMO's and PPO's are very expensive health plans, but will cover most medical situations. HSA's are becoming more popular as a way to offer health insurance. These are health savings accounts. Each year, an employee will get an allotted amount of money that they can use for their health care needs. Small businesses and employees will get tax breaks that will help off set the cost.

Since group health insurance coverage for small businesses will cost a lot of money each year, some small businesses have decided to offer other incentives to their employees along with a basic health care plan. These incentives are sometimes enough to keep employees loyal to a company.

Thinking Outside the Box

Employee motivation programs are a way for small businesses to offer employees extra benefits without adding to the cost of their health insurance.
Small businesses will offer incentive programs that include:

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Personal Time or Floating Holidays
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Company discounts on merchandise or services
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Tuition Reimbursement
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Extra Sick Days
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Business Cards
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Gym Passes
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Parking Privileges
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Direct Deposit Options

There are many other incentives small business owners can give to their employees depending on the type of business they are in. Combining these incentives with a basic health care plan will help to keep hard working employees from finding other jobs. Being lenient about leaving work early for a doctor's appointment or other personal business is another way to keep employer loyalty.

The Bottom Line

In the end, the bottom line will always win because if a small business cannot pay for itself, then everyone will have to find a new job. Small businesses can be a gamble. But with proper planning, thinking of creative ways to offer employees competitive wages, health benefits, and other incentives, a small business can succeed. Research is the best way to find out how to finance any business. Creativity and innovation are the ways to keep a small business on the right track.