Employee perks play a pivotal role in fostering a strong bond between employers and their workforce. In the relentless pursuit of top-tier talent, organizations are continually striving to outdo one another in the realm of employee medical benefits for mid size business, and the motivation behind this drive is crystal clear. The expenses associated with recruiting and onboarding exceptional employees can be quite substantial, diverting valuable resources that could be invested more judiciously elsewhere.
Consequently, mid-sized enterprises can wield their competitive edge by providing distinctive and valuable employee perks. This gesture not only demonstrates a genuine dedication to the well-being of their staff but also underscores the emphasis on more than just monetary gains as they work together towards shared success.
How Mid Size Business Employee Benefits Can Affect Your Workforce
Some carefully considered advantages can:
- Attract exceptional talent
- Elevate the spirits in the workplace
- Enhance employee dedication
- Refine your company’s culture
However, it’s important to note that there is no universal approach when it comes to staff benefits for medium-sized enterprises. Bearing this in mind, here’s a summary of the essential information about health benefits for mid size business employees.
Prioritizing Health with a Mid Size Business Healthcare
In today’s marketplace, workers have higher expectations from their employers, especially when it comes to attractive benefits. Surprisingly, many employees would opt for a job offering lower wages if it comes with more appealing benefits than a higher-paying position. This trend is especially pronounced when it involves superior medical, dental, and vision insurance packages, as revealed by a 2020 study conducted by Fractl.
Health-related benefits have consistently ranked as a top priority among employees over the years. Multiple research studies emphasize the significance of health insurance, with all generations, from Baby Boomers to Generation Z, valuing it highly. Alongside health coverage, the contemporary workforce places great importance on benefits such as flexible work arrangements, the option to work remotely, and increased paid time off.
Essential Mid Size Business Health Benefits for Employees
Medium-sized companies aiming to allure and retain talent must encompass the subsequent supplementary and optional benefit selections in their package:
- Healthcare coverage
- Dental benefits
- Vision care
- Health spending or savings account
- Life insurance
- Disability protection
- Mental wellness support
Healthcare/Medical Insurance
Health insurance serves the purpose of easing the financial burden on employees when it comes to healthcare expenses. It can be funded either by the employer or the employee through a company-sponsored plan. Certain employers provide partially or fully funded plans as part of their employee benefits portfolio, while others offer it as an optional addition for employees at an extra cost.
A standard health insurance package typically includes coverage for:
- Hospitalization and surgical costs
- Prescription medications
- Visits to a primary care physician
- Consultations with specialists
- Certain diagnostic tests and procedures
Dental Coverage
Dental coverage is regarded as a fundamental employee benefit that is anticipated by most. As per data from the Society for Human Resource Management (SHRM), in the year 2020, nearly 95% of employers provided dental insurance to their workforce.
Vision Insurance
Vision care proves to be exceptionally advantageous for individuals dealing with vision challenges. Much like dental insurance, vision insurance is available either as a component of the overall healthcare insurance package or as a separate, standalone benefit.
Vision coverage encompasses a range of services, such as eyeglasses and contact lenses, cataract laser surgery, regular eye examinations, prescription medications for eye-related conditions, and treatments for ailments like glaucoma.
Health Spending Accounts
Most traditional health insurance plans, excluding High Deductible Health Plans (HDHPs), typically include a Flexible Spending Account (FSA). FSAs grant employees the ability to cover eligible medical expenses without incurring taxes, up to the annual limit determined by the IRS.
In contrast, HDHPs are often accompanied by a Health Savings Account (HSA). Many employers opt for HDHPs due to the cost advantages when compared to traditional co-pay plans like HMOs and PPOs. Given their high deductibles, many HDHPs qualify for HSAs. Employers frequently choose to make contributions to their employees’ HSAs. HSAs function in a manner similar to FSAs but offer extra benefits. Unlike FSAs, funds contributed to an HSA remain the property of the employee and do not expire, thus avoiding the “use it or lose it” requirement. HSAs also act like savings accounts, capable of earning interest and even being rolled over into a 401(k) under specific conditions.
For mid-sized businesses seeking to provide some form of coverage while maintaining financial flexibility, a Health Reimbursement Account (HRA) is a viable choice. An HRA operates much like an HSA by reimbursing qualifying medical and health-related expenses with tax advantages. However, the significant distinction is that HRAs are fully funded by the employer. There are various IRS-approved HRA types that employers can opt to offer. In 2020, almost 17% of employers provided HRAs.
Life Insurance
Life insurance offers a reassuring layer of security for employees who have families that could encounter financial difficulties in the unfortunate event of an unexpected death. Typically, many employers provide a basic life insurance policy at no cost to their employees, allowing employees the choice to acquire supplementary coverage if they wish.
Disability Insurance
Disability insurance delivers essential financial support to employees in the event they are unable to work for extended periods due to illness or injury, ensuring their income and financial stability.
Companies have the option to include fully-funded short-term or long-term disability insurance within their benefits package, or they can make it available as an elective choice where employees share the premium costs.
Mental Wellness Support
Did you know that according to the National Alliance on Mental Illness, 1 out of every 5 adults in the US deals with some kind of mental challenge? So, it’s not just some big number; it means that one out of every five people you know might be struggling with their mental health right now.
With more people working from home or in a mix of office and home settings, there’s less face-to-face time and more isolation. Without the right support, this can lead to feelings of anxiety, sadness, or even depression. The good news is that people are talking more openly about these issues, which is creating space for much-needed conversations about mental health.
As an employer, you can play a part in making your workplace a safe space for employees to discuss their mental health and seek help when they need it. Here are some common ways to do that:
- Offer access to therapists either on-site or through an app.
- Provide tools that help employees keep track of their stress levels.
- Establish Employee Assistance Programs.
- Include mental health support as part of your healthcare plan.
Providing Quality Medical Benefits for Mid Size Business Employees
Empower your workforce with the care they deserve. In today’s world, the significance of employee benefits cannot be overstated, particularly in the realms of healthcare, mental wellness, and financial security. With the understanding that one in five people you know might be facing a mental health challenge, your commitment to holistic employee well-being can make all the difference.
Offer robust health coverage, accessible mental health support, disability protection, and financial stability through well-crafted medical benefits for mid size business. By doing so, you foster a culture of compassion, loyalty, and high morale that attracts exceptional talent and keeps your team thriving.