Offering Health Coverage to Full Time Employees

The cost of running your small business is something you have to constantly monitor. Expenses can vary not just from year to year, but from month to month. If you have employees or are hiring new employees, it is particularly important to make sure there is always plenty of money to provide for them. For many employees having health care coverage, especially as a full time worker is something that can make the difference in choosing one job opportunity or another.

Weighing Costs of Coverage

You would not want to lose out on quality workers and the skills they have which can be a valuable asset to your business because you do not offer health care coverage. Yet, since health coverage is a large expense even for a business that is doing well, this is something that you may not yet be able to afford. Or, you may not think you can afford the cost of paying for health coverage for your full time employees.

Your business is required to pay for certain forms of other insurance such as business liability coverage. As such, you may have understandable reasons for being unsure about taking on the cost of any other type of coverage, even health care coverage for a valued employee or two. But, liability insurance can only protect an employee to a certain extent, so you can not rely solely upon the worker's compensation component of such coverage.

Most part time employees will understand why they are not entitled to health benefits. But, full time employees may be placed in a challenging position if they have to pay for these benefits themselves. Just as you are uncertain about taking on the cost of paying for an employee health care plan because of the impact it may make on your budget, your employees just might be uncertain about being able to pay for their own coverage on top of other expenses they are already working to meet.

This may not necessarily mean that an employee will fail to perform their job properly, but if they had to make the choice based solely on financial considerations it could be that they would have to find a job that did provide such benefits to them. If there was a change in their personal life, such as a marriage or a divorce, they may not be able to afford working for your company and pay for health coverage, too. They may be forced to find work at another company where they can get full health benefits.

Benefits of Paying for Coverage

Naturally, this is a difficult position to be in whether you are an employer or an employee. It is a rare employer who honestly wishes to avoid paying for health coverage simply because they do not care about their employees. In most cases, the cost of the coverage is what affects both an employer and an employee. But, if you want to retain the loyalty of the employee you may want to weigh the costs of paying for coverage over the costs of potential losing that employee to another nearby business.

If your company has a reputation for offering health coverage to full time employees, it could make your company one a potential job candidate would want to choose over a local competitor. Start out by committing to only covering full time employees and monitor the coverage costs over time. If you try to employee only part time workers so as to avoid the issue, you could actually be costing the business more in wages where you thought to save on coverage.

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