Just taped a radio show on the Affordable Care Act. One of the other guests was a small employer. He is grappling with the issue of whether to offer his new employees health insurance or not because he is concerned with the cost and whether that cost will increase to an unaffordable rate next year. These candidates are saying they cannot accept the job without health insurance.
This is the classic dilemma faced by many employers. From a strategy standpoint, employers must balance costs against the ability to attract and retain good employees. He can keep his costs down by not offering insurance, but lose good employees, or he can potentially increase his costs by hiring and retaining quality employees.
While there are many nuances to this issue, all employers are faced with this balance—whether it is with health insurance or any benefit, or wages, or frankly the cost of materials.
With employees, hiring and retaining stars is critical. Productivity increases, customer service improves and profits usually follow. For this business owner, he needs to decide if that’s worth it by offering health insurance.
What would you do? Let us know in the comment section.
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