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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