Business Owners secret weapon
to attract & retain top talent
Business Owners Secret Weapon to Attract & Retain Top Talent
It has been nearly two years since the word “COVID” entered our vocabularies and everyday discussions changing the way we approach everyday life. It has also changed the way businesses operate to a degree where some companies have closed offices to allow employees to be hybrid or remote and so much more from an operational level. As we prepare for 2022, it seems that the fallout from the pandemic is far from over, especially when it comes to the job market and hiring challenges so many business owners have experienced since “COVID” became a regular headline for the world.
In September alone, a record-breaking 4.4 million Americans left their jobs according to data from the U.S. Department of Labor. Not to mention that isn’t counting those who were self-employed or the additional 4.29 million people who quit their jobs in August. It’s blatantly obvious to see why some economists and critics are referring to this current period as “The Great Resignation.”
Why are so many people quitting their jobs now without another job lined up in the pipeline? While there are a plethora of reasons, we can narrow it down to a few. Some cite a lack of affordable childcare, healthcare, and other lucrative employer-provided benefits. Others say they’ve been able to accumulate substantial savings in their bank accounts, so they don’t need to work right now and can utilize this time to explore themselves. Another reason for people leaving the workplace is that many still express concerns and fears over catching the virus – or one of its many variants – and spreading it to someone they care about. These are all valid reasons why people are resigning.
One of the more prominent reasons to why people are walking away from their jobs is that the pandemic has caused them to reevaluate their personal and professional priorities. It has put a spotlight on the shortcomings people have experienced in the workplace in recent years. They’ve realized that the low pay, long hours, subpar work environments, and lack of recognition or fulfillment are no longer acceptable in this day in age. Plus, they’ve realized that there are plenty of other better-paying job opportunities out there with employers that are with the “times” and understand how the workplace has evolved.
We aren’t talking just a few jobs either – we are talking about more than 10 million job opportunities, to be exact. Which has added to the “unemployed” feeling of security and ability to be comfortable in taking their time to find an employer who will value them, their goals, and award their overall contributions.
With employees seemingly embedded in the driver’s seat at the moment, so many business owners are quickly coming to the realization that they are in dire need to step up their game with an updated approach if they want to not only attract top talent but also retain that talent for years to come. According to Patrick Moraites, partner and VP at Tampa-based Axis Group there is a reason why companies of all sizes are taking measures and pulling out all stops to do everything they can to entice people to join their team.
“You’re seeing a lot more employers not only offering – but paying for a much more robust health insurance coverages and other ancillary benefits like life, disability, & indemnity insurance to help reduce out-of-pocket medical expenses for them and their families.” Moraites said.
“Savvy business owners recognize that potential employees opt for benefits that can can utilized from day 1 in addition to additional plans that help reduce their medical expenses across the board. It is becoming more apparent that the businesses who aren’t offering this are finding it extremely challenging to recruit potential employees, or losing existing employees to the competition.”
Many small employers automatically assume that there is no way their organization can afford or administer fortune 500 style robust health insurance coverages and provide everyone ancillary or indemnity benefits. You know what they say when a person “assumes” something… “Wait, so you are telling me…” Yes, business owners are pleasantly surprised to learn that their assumptions are ultimately incorrect and there are affordable options out there.
“There’s a perception that it’s going to cost a lot and that they’ll have to contribute 50 percent, at minimum, of the premium. Unfortunately, once employers start losing key talent because of a lack of benefit offerings, it’s going to cost them exponentially more money.”
“Think about it, you have to pay to recruit, train and replace all of those people that you lost. All you had to do was pick up the cost of their health insurance.”
Moraites takes a quick pause to drive his point home;
“The losses don’t stop there, losing that tenured employee will reduce your companies production leading to dips in revenue or delays. BUT WAIT…THERE’S MORE! You will have to revamp the company culture that took years to build now that you finally hired replacements! As you can tell, inaction by employers is a slippery slope. If owners aren’t being proactive about retaining employees the impact to their business could be detrimental.”
There is a secret weapon for business owners who want to offer competitive health insurance coverage and robust benefits without paying an arm and a leg, hiring a Professional Employer Organization (PEO) could be the best decision they ever make. Why? Because PEOs have the ability to leverage economies of scale to obtain health insurance and other benefits, giving them the ability to provide and enable small companies to offer Fortune 500-level benefit packages at affordable prices which can, in turn, help them attract new employees and retain current employees.
Aside from pricing, working with a PEO can help business owners access a wider variety of plans. For example, imagine you’re an employer with a dozen employees and you go to the traditional marketplace to purchase insurance on your own. Because you have such a small team, the insurance carrier is likely to only offer you one type of plan and even though that plan may not be a good fit for most of your employees, it’s all you can afford so you buy it. Then, when it’s time for enrollment, not enough people sign up and you find yourself unable to offer a plan at all. Suddenly, you’re back to square one.
Under the PEO model and its ability to aggregate economies of scale, however, you’ll be able to offer your employees nine or ten different plans. This not only empowers them to make decisions based on their own needs, but it also shows that you value them as an employee and that you’re committed to their health and well-being.
And if your employees aren’t sure how to make those decisions, PEOs are there to provide support during the enrollment process.
“You’ve got HMOs, PPOs, in-network, copays and most people don’t understand the rhetoric and language around health insurance,” Moraites said. “A PEO can really wrap their arms around both business owners and employees and provide them with a dedicated, licensed health professional who can walk them through all the plans and educate them on what their options are.”
Beyond the enrollment process, PEOs will also handle the heavy lifting when it comes to benefits management and administration and can monitor employee life changes such as births and marital status to ensure all information is up to date. They can also assist employees with tax compliance and reporting to prevent any unexpected financial responsibilities.
For these reasons – and many more – hiring a PEO is a smart decision for business owners who want to offer health insurance to attract new talent and take care of their current employees. If you’re interested in exploring your coverage options, the team at Axis is more than ready to help. Contact us to set up a consultation