New Business - Employee Benefits
Owners of new businesses are often faced with the problem of how to attract and retain employees when they do not have a group benefit plan. This may be because they are not eligible for group insurance due to their newness or industry sector. Or perhaps it is the belief that they cannot afford to implement a plan along with everything else they face setting up their new business.
One method of controlling expenses yet offering benefits is through the use of individual health and dental plans. The owner provides the mechanism for interested employees to have benefits, and those who do not need coverage (perhaps because their spouse already has family protection through their employer), do not have to participate.
The owner can optionally contribute either 25% or 50% (up to a stipulated ceiling they establish), based upon the employee sharing the cost. Another alternative, is to initiate the plan as 100% employee-paid until the employee has been with the company for 12 months. This method rewards loyalty.
Using individual health and dental plans is an excellent method to achieve this because it delivers maximum flexibility for the business owner. And the employee benefits too! They have a fully portable program that they can maintain throughout their working years regardless of the path it takes them.
To learn more about similarities and differences in group benefit plans versus individual benefit plans, click LINK.
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