If your startup is struggling to retain its best employees it may be time to take a step back and identify what is going wrong. A Gallup Study shows that 50% of startups don’t survive beyond 5 years of launching. Your people are your biggest asset (or liability) and one of the most notable causes of startups failure is lack of employee benefits. You invest so much time in recruiting so retention is key to realizing a return on your investment. New employees want to feel valued as well and benefits are key.
A health insurance package might sound like a financial stretch but it’s necessary to retain top talent. Here are just a few reasons you should start shopping for health insurance for your employees:
Hiring Top Talent.
Startups face many challenges and one of the primary obstacles is attracting the right talent. No one wants to risk moving from an established firm to a startup that may belly up in a few months. The good news is your medical insurance policy might be all you need to sure up your reputation. A study by the National Center for Biotechnology Information (NCBI) found that businesses are able to recruit high-quality workers and retain them if they offer health benefits.
Minimize Turnover Rate.
A high turnover rate is bad for any business but even riskier for a startup. If getting staff to start your company is tough enough finding a replacement is a herculean task. If your startup does not offer employee benefits then that’s one more reason for a member of your team to jump ship when a better offer comes along. Remember this is the age of GlassDoor and CareerBliss, and people talk –especially with online anonymity. A health insurance policy is an investment in your people and it’s one less deterrent totheir being poached.
While money is considered the ultimate extrinsic source of motivation, intrinsic motivation factors play an even bigger role. Contributing to your 401K, continuing education subsidies, access to a local dentist and general health insurance feels good, and that emotion should not be taken lightly. Your startups actions show you care as much about my person as your profit, and that acknowledgement will ultimately benefit your bottom line. Always remember that the mood in your office will greatly contribute to the overall performance of your staff.
Health insurance is not a hypothetical proposition but a benefit that comes in handy when an employee falls ill. For example, if your employee wants to visit the best Aurora, Colorado dentist for gingivitis treatment then dental insurance is necessary for an efficient and cost effective remedy. A healthy workforce translates to less sick days and more work output.
There is no denying the importance of health insurance coverage for yourself and your employees. However, most startups forego health insurance to save money. This is a short-term mistake. While this may be a cheaper option right now, you will pay the price when employees leave and it becomes harder to replace them. There are different health insurance options for businesses of varying sizes so start looking for the one that benefits your workforce today.