Small Business Startup News
Top 3 Issues SMBs Face
Written by Jenna Weiner
Offering voluntary benefits to employees can help SMBs increase productivity, reduce costs and retain good workers.
The 2011 Aflac WorkForces Report found that the top three issues small businesses face include increasing employee productivity, controlling health/medical insurance costs and retaining employees. According to Business Insider, voluntary insurance plans can address all three issues for small business owners.
Most small business owners are struggling to provide employee health coverage while reducing costs overall. Voluntary insurance policies have no direct cost to businesses and can reduce corporate taxes by cutting FICA tax contributions, the news source reported.
Similarly, small businesses have had to make cutbacks on staff due to the recent economic downturn. This creates a demand for higher productivity from fewer workers to remain competitive. Workers are more likely to focus on their jobs and complete them well if they are not as concerned with financial problems. Voluntary insurance policies help employees cope with out-of-pocket expenses that major medical insurance policies do not cover.
According to the study, 63 percent of small business owners think a benefits package influences employee satisfaction, and 18 percent believe it can affect an employee's decision to leave. It takes time and money to recruit, interview, train and hire a new employee. Keeping the worker satisfied and feeling appreciated by offering them voluntary benefits can improve employee retention.
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