Should You Consider PEOs for Better Employee Benefits Insurance?

Employee benefits insurance, including group health coverage, life insurance, and disability insurance, is a major expense for any small business. However, with the right deal, small business owners can transform this major expense into a significant competitive advantage. Businesses offering better benefits can attract top talent and keep their employees healthy and happy.

That said, for a small business owner who already has countless items that require their attention, finding these plans and negotiating the best possible rates may seem like a time investment they can’t afford.

PEOs may offer a solution. Here’s how.

Why Every Business Should Look for the Best Possible Employee Benefits Insurance

Nearly every business offers employee health insurance. In today’s job market, it’s seen as a requirement for most full-time workers. While the law may stipulate that you aren’t required to offer employee health insurance if you have less than 50 full-time employees, forgoing group employee insurance benefits comes with plenty of risks on its own.

Compensation is Not the Sole Decider for Candidates

There’s no question that compensation is the first consideration for most candidates when weighing job opportunities. However, it’s far from the only factor. 

Employers in especially competitive industries, like technology or healthcare for example, need every advantage they can get when it comes to attracting high-quality candidates. Comprehensive employee benefits insurance is one of the best ways for an SMB to differentiate itself.

Healthier Employees are More Productive

According to Gallup, employers lose about 15 to 20% of their total payroll costs to voluntary turnover caused by poor employee wellness.

Organizations who manage to find not just adequate, but good, employee benefits insurance can avoid this waste.

Decreasing the Cost of Total Compensation

Job seekers who place a premium on great benefits (including stable and dependable workers like those with large families) may be willing to accept lower salaries for access to a more complete benefits package.

This means that SMBs who manage to negotiate full employee benefits insurance plans at affordable rates can use them strategically when they start to expand.

The Challenges SMB Owners Face when Searching for Employee Benefits Insurance

It’s clear that it’s worth it for business owners to track down the best possible employee benefits insurance. It will help them attract better employees, help them stay productive, and lower the cost of total compensation. 

There’s a few obstacles in their way, though.

A Large Time Investment

Every SMB owner knows that time is their greatest resource. That’s because it’s the most in-demand. 

Between recruiting, managing HR concerns, leadership responsibilities, strategic planning, and normal day-to-day operations, it’s not clear where sifting through countless options for employee benefits insurance will fit in.

Complicated Benefits Packages

On top of the time it would take to find a good list of plans to consider, employee benefits insurance plans are not always uniform. It’s not as easy as comparing apples to apples. Certain plans may offer different benefits, or even charge for the same benefits in different ways.

Then there’s the impact to employees which also needs to be weighed against every company’s individual needs. SMB owners may not feel they have the expertise to make the best possible decisions on their own.

Lack of Access to The Best Options

This is a hidden obstacle that employers may not even realize is in their way.

Large corporations, owing to their high number of employees and vast resources, have the leverage to negotiate special packages with insurance companies. This means that SMB owners hoping to compete with their large competitors for top candidates are starting on an uneven playing field when it comes to employee benefits insurance.

How PEOs Level the Playing Field for SMB Owners

SMB owners who want access to the best possible employee benefits insurance plans may be better served to enlist a partner - one who understands the current benefits landscape, has the time and resources needed to uncover the best possible packages, and can negotiate the best possible rates for those packages.

PEOs can do all of this, and more. Here’s how:

Leveraging Negotiating Power for Better Rates

PEOs leverage their negotiating power to access comprehensive benefits packages that might otherwise be unattainable for smaller businesses. PEOs can help negotiate better rates for:

• Health insurance
• Dental insurance
• Vision insurance
• Other ancillary benefits

This ensures employees receive high-quality coverage at lower costs.

Enhancing Employee Wellness Programs

PEOs offer access to complete employee wellness programs that promote health and well-being. These programs can include:

• Health screenings
• Fitness programs
• Stress management workshops
• Nutritional counseling

Such initiatives not only improve employee health but also enhance productivity and reduce turnover.

Providing Administrative Support

PEOs provide extensive administrative support, including a variety of tasks such as:

• Payroll processing
• Tax filings
• Benefits administration

This allows SMB owners to focus on core business operations rather than getting bogged down in administrative tasks.

Offering HR Consulting Services

PEOs offer HR consulting services, assisting businesses in developing and implementing effective employee retention strategies. This holistic approach not only attracts top talent but also fosters a positive work environment. Services include:

• Employee performance management
• Training and development programs
• Employee engagement initiatives

Partnering with a PEO provides SMB owners with the resources and expertise needed to offer competitive benefits packages, enhance employee wellness, and streamline HR processes. Combined, these factors enhance employee satisfaction and allow business owners to focus on driving growth.

BBSI Can Help You Find the Perfect Employee Benefits Insurance Package

SMB owners looking to provide the best possible employee benefits insurance have a difficult task. Finding the time to sift through the many plans available, then identify the best option, and sign up at an affordable rate can be overwhelming.

That’s where a PEO like BBSI can change everything for you.

Business owners who partner with BBSI for their employee benefits insurance get access to top healthcare plans normally offered only to the world’s largest corporations. This includes benefits like:

• Medical, Dental, & Vision
• Life and Disability Insurance
• Employee Assistance Programs (EAP)
• FSA, HSA, and Supplemental Plan Options

We can also help you find custom and flexible plan options that fit the needs of your unique workforce.

Looking for your next employee benefits insurance package? Contact your local BBSI representative today and let us help.