6 Hidden Costs of NOT Offering Health Insurance to Your Employees in Hawaii

Table of Contents

● Decreased Employee Retention

● Reduced Employee Recruitment

● Lower Productivity and Absenteeism

● Declining Workplace Morale

● Unforeseen Employee Healthcare Expenses

● Missed Tax Advantages

● The Numbers Tell the Story: Impact of Not Offering Health Insurance

● Finding the Right Plan for Your Business: Proinsurance Hawaii Can Help

● Protect Your Business and Your Employees

Offering competitive benefits is essential for attracting and retaining top talent in today’s job market. While small business owners often focus on salary, health insurance is a crucial factor for many employees. The decision to forego employee health benefits might seem like a way to trim costs initially, but it can lead to significant hidden expenses down the road. Here are six to consider:

1. Decreased Employee Retentio

Talented employees want to work for companies that prioritize their well-being. Without health insurance, your best workers may seek opportunities with competitors who value employee benefits. This leads to higher turnover costs associated with recruiting, hiring, and training replacements.

2. Reduced Employee Recruitment

When it comes to attracting top talent, health insurance is a major draw. Not offering this essential benefit severely limits your candidate pool, making it significantly harder to fill open positions.

3. Lower Productivity and Absenteeism

When employees lack access to preventive care and affordable treatment for health concerns, minor issues can escalate. This leads to increased sick days, presenteeism (physically present at work but mentally checked out due to illness), and decreased productivity overall.

4. Declining Workplace Morale

Employees who feel their employer doesn’t invest in their well-being often experience lower morale and less job satisfaction. This creates a ripple effect, impacting overall team performance and your workplace culture.

5. Unforeseen Employee Healthcare Expenses

If an employee or their family member experiences a major health event without coverage, the financial burden can be catastrophic. This stress bleeds into their work life, and in some cases, coworkers might feel pressured to donate money or PTO to help, straining your entire team.

6. Missed Tax Advantages

Small businesses may be eligible for tax credits and deductions when providing health insurance to employees. By foregoing this benefit, you could be leaving potential savings on the table.

The Cost of Doing Nothing Can Be High

While small business health insurance does have an upfront cost, the long-term consequences of not providing benefits can be even greater. Investing in your employees’ health is an investment in the overall success and future of your company.

The Numbers Tell the Story: Impact of Not Offering Health Insurance

● According to the Hawaii State Department of Health (https://health.hawaii.gov/), employees Employees spend approximately 36% of their total waking hours at work. Without employer-provided health insurance, this means a large chunk of their time is spent without access to the care and resources needed for maintaining well-being. This can lead to missed preventive care, financial anxiety due to medical costs, and a lack of support for healthy behaviors.

● Companies that don’t offer health insurance can experience turnover rates up to 50% higher than those that do. https://www.shrm.org/]

● Employees without health insurance are more likely to miss work due to illness and have lower productivity levels, costing US businesses billions annually. https://www.cdc.gov/workplacehealthpromotion/index.html]

Finding the Right Plan for Your Business: Proinsurance Hawaii Can Help

Navigating the world of small business health insurance doesn’t have to be overwhelming. That’s where Proinsurance Hawaii comes in. Our mission is to help you find the perfect coverage for your unique needs. We understand that affordable, comprehensive health insurance is essential for attracting top talent and keeping your employees healthy and productive.

Protect Your Business and Your Employees

Don’t let hidden costs hold back your business’s success. Contact Proinsurance Hawaii today to explore your options for affordable small business health insurance.