Employee Benefits Key to Continued Small Business Growth
Dave
Villar , President Pacific Coast Benefits LLC ,
Dave Villar is the President of Pacific Coast Benefits LLC . He was a founder and partner of PDI Insurance Services . Dave is an active member of the National Association of Health Underwriters and a member of the Anthem Blue Cross Agent Advisory Council . He has specialized in Employee Benefit Planning for businesses since 1987 . To find out more about Pacific Coast Benefits and upcoming Healthcare Reform Seminars , visit pacbenins . com or call ( 408 ) 847-1000 .
According to the 2014 AFLAC Work Force Report for Small Businesses , small businesses saw positive growth in 2013 , but are tempering the positive news with careful choices about hiring , compensation and employee benefits . The recent study revealed that as small business decision makers adapt to a slowly growing economy and health care reform regulations , they are still concerned about taking care of their employees and continuing their employee benefit programs .
The study found that businesses with 3 – 99 employees took the following actions :
• Hired at a slower pace than medium or large companies . 45 % of small companies hired full-time employees in 2013 while 71 % of medium sized companies and 60 % of large companies did so .
• 12 % of small employers changed employee hours employees from full time to part time in 2013 .
• 34 % reported smaller raises in 2013 than the previous year , but only 24 % plan to do the same thing in 2014 and only 18 % plan to eliminate raises all together .
The study also found that although 63 % of the employees at small companies are extremely or very satisfied with their job , many think there is room for improvement when it comes to their benefits package . Only 12 % are extremely satisfied with their benefits and just 14 % believe their benefits package meets the needs of their family extremely well .
For small business employees , benefits can be the deciding factor in staying with their current employer . The AFLAC report shows that nearly 50 % of employees working at a small employer say they are likely to look for a new job in the next 12 months . The AFLAC report highlights how critical a strong employee benefit program can be a tool to increase retention and employee loyalty . The study goes on to report :
• Nearly 6 in 10 small business employees say they ’ re likely to accept jobs with slightly lower compensation but better benefits .
• Nearly 5 in 10 small business employees say that improving their benefits package is one thing their employers could do to keep them in their job .
“ Employees at a small business might be satisfied with their pay , enjoy their company environment , their colleagues and the work itself , but that doesn ’ t mean better benefits offered somewhere else won ’ t entice them to leave ,” said Teresa White , Executive Vice President / CEO of AFLAC .
Preserving or enhancing benefit programs can go a long way towards retaining employees at your company . More than a third of the employees responding to the survey reported maintaining their employee benefits is their biggest work concern .
Health Care Reform has made it more difficult than ever to maintain a quality employee benefit program at an affordable premium . A comprehensive review of your current program by a professional consultant is a great first step to assure you are in the right place or if changes are in order .
At Pacific Coast Benefits , we have a firm understanding of the current Healthcare Reform landscape and what lies ahead . For a free copy of the 2014 AFLAC report , or any Healthcare Reform questions , please feel free to give us a call .
Study reveals that small business owners are still concerned about taking care of their employees .
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