The slowing economy is taking yet another toll on small businesses. More and more are dropping health insurance coverage for themselves and their employees.
A new survey conducted by online payroll service SurePayroll found that 56 percent of small businesses do not offer a health care plan, primarily due to the high cost. Worse, more businesses are dropping coverage. When compared with a 2006 survey, SurePayroll reports the number of small businesses offering health insurance dropped by 32 percent.
"It was tough before and now it's getting even tougher for small-business owners to offer health insurance," said SurePayroll President Michael Alter in a press release. "The cost of doing business is going up -- health insurance premiums are going up. Many owners feel they have no choice but to cut costs wherever possible, including on health care coverage."
Lorrie and Thomas Blitch, owners of child development center The Magellan Academy on Deerwood Park Boulevard, have worked with several insurance carriers in an effort to keep rising premiums contained.
"Each time, each renewal year, the rates would be jacked so far up," said Lorrie Blitch. "As a small business, we couldn't afford it. We have to pay 50 percent [of employee health insurance premiums] and sometimes it would go up $150 per employee per month. We would look at the budget and say, 'We can't afford this.' "
Magellan Academy has 45 employees who typically earn about $13 per hour, and it will have at least 90 workers when its second location opens in Durbin Crossing next month.
Despite the cost, dropping health insurance coverage was never an option.
Blitch said offering health insurance is an important tool that she uses not only to recruit the most qualified job applicants, but to retain her most experienced employees. She's not the only one who realizes the value of offering a health benefit. The SurePayroll survey found that two out of 10 respondents recalled at least one time when a prospective employee turned down a job offer because of a lack of health care benefits.
"We compensate them well and because of that we have a low turnover rate," Blitch said. "My husband and I feel they work hard for us, so we believe we should take care of them."
Magellan Academy offers several types of coverage including a major medical plan. They are now considering adding a health savings account plan to help the employees meet high deductible costs. HSA plans in conjunction with high-deductible health plans allow employees to save money that can later be withdrawn tax-free to pay for qualified medical expenses.
"We're always looking at different avenues to save money and reduce their taxable income," Blitch said.
Business owners should meet with their CPA and financial planners before deciding whether to drop coverage. Dropping coverage could have an unintended effect on the owners themselves if they develop a medical condition that prevents picking up a reasonably priced individual plan in the future.
"Let's say [a business owner is] 48," said Bert Livingston, a retirement and estate planning strategist affiliated with National Financial Services Group. "At 52, he has a medical issue [that prevents future coverage through an individual plan] but he wants to retire at 63. There's what's called the Medicare gap. Where is the health insurance?"
It takes a bit of effort to find them, but there are affordable health care options on the market that can save both the employer and employees money. Different plans feature different levels of deductibles and benefits to help make health care less costly. There are also "cafeteria plans" which allow employees to choose a plan suited to their needs, pre-tax.
"You can have four or five programs so that the employees can choose which one they want," said Dana Edwards, a general contracting agent with Blue Cross and Blue Shield of Florida Inc. "You can have a low-cost plan, a high-deductible plan and the HSAs are becoming very popular. So, it gives them a variety of choices."
"It comes out of [the employee's] check pre-tax, which reduces FICA and Social Security, and the employer is seeing the payroll reduced and so his workers' compensation is reduced. A lot of employers don't think about that."
Employers are also able to receive a tax deduction on their contribution.
Wednesday, July 9, 2008
Tuesday, July 8, 2008
Top performers hard to find and keep, survey shows
Retention concerns have risen significantly in the last year, with 73 percent of hiring managers in the U.S. worried about losing their top performers to other job opportunities
That number is up from 46 percent of hiring managers surveyed in 2007.
Robert Half International Inc. surveyed 4,000 finance and human resources managers in 20 countries, with 56 percent admitting it's been hard to find skilled job candidates.
"The results of this year's report reflect the challenges hiring managers around the world continue to face in locating and retaining highly skilled accounting and finance professionals," said Greg Scileppi, director of international operations for Robert Half International. "The perennial need for strong financial functions is fueling competition for the best candidates and prompting companies to develop more effective strategies to prevent the loss of their most valued employees."
Each job candidate is interviewed an average of three times before filling a staff-level position, compared with only two interviews last year. Employers also reported using project professionals more often, and at more senior levels, than during the last three years.
Hiring managers surveyed from the U.S. said industry knowledge and experience was the most important attribute -- a trend reported in 16 of 20 countries surveyed. Last year, regulatory compliance expertise was the leading response.
"The global demand for executives with deep industry expertise represents a renewed emphasis on fundamental competitive performance," said Scileppi. "As regulatory compliance efforts have become better established, firms are returning their focus to maintaining an edge within their industries and seeking leaders who can help them do so."
That number is up from 46 percent of hiring managers surveyed in 2007.
Robert Half International Inc. surveyed 4,000 finance and human resources managers in 20 countries, with 56 percent admitting it's been hard to find skilled job candidates.
"The results of this year's report reflect the challenges hiring managers around the world continue to face in locating and retaining highly skilled accounting and finance professionals," said Greg Scileppi, director of international operations for Robert Half International. "The perennial need for strong financial functions is fueling competition for the best candidates and prompting companies to develop more effective strategies to prevent the loss of their most valued employees."
Each job candidate is interviewed an average of three times before filling a staff-level position, compared with only two interviews last year. Employers also reported using project professionals more often, and at more senior levels, than during the last three years.
Hiring managers surveyed from the U.S. said industry knowledge and experience was the most important attribute -- a trend reported in 16 of 20 countries surveyed. Last year, regulatory compliance expertise was the leading response.
"The global demand for executives with deep industry expertise represents a renewed emphasis on fundamental competitive performance," said Scileppi. "As regulatory compliance efforts have become better established, firms are returning their focus to maintaining an edge within their industries and seeking leaders who can help them do so."
Advantage of Dental Plans
If you're looking for more affordable dental care, and there are several benefits to choosing dental plans over dental insurance:
The application process is much easier for dental plansWith a dental plan, you will only need to pay the membership or plan fee and fill out a simple form. Many companies even allow you to do this online. In many cases, you will not have to have a dental exam or an interview, which can save you considerable time. With many dental plans, you will not have to worry about pre-qualifying procedure that may disqualify you from coverage. In many cases, as long as you can pay the monthly or yearly fee you are covered. Even if you do not qualify for traditional dental insurance, you can enjoy lower dental costs with discount dental plans.
There is less disagreement over dental costsWith dental insurance, you may need to send in claims forms, complaints, letters, documents, and other material if the insurance provider refuses to reimburse you as much as you would like or as much as you feel you're entitled to. With dental plans, you know up front how much will save on dental costs. This ensures that there is less confusion and less hassle afterwards.
You will save considerable money with dental plansDental plans work by convincing certain dentists to reduce their costs for plan members. Dental plan companies offer referrals to certain dentists. In exchange, dentists lower their costs for the patients who are referred to them by a plan company. This system can save patients considerable amounts of money. If, like many patients, your main concern is affordable dental care, good dental plans are good way to achieve that.If you want the best dental insurance for you or your family but are finding that the average dental insurance plan does not meet your needs or is more expensive than you had imagined, a good dental plan may be an excellent alternative. A reliable dental plan can also save you considerable amounts of money each year on your dental costs. However, the dental plan can be less hassle than traditional dental insurance. In fact, a dental plan can save you time as well as money while still protecting your teeth and gums.
The application process is much easier for dental plansWith a dental plan, you will only need to pay the membership or plan fee and fill out a simple form. Many companies even allow you to do this online. In many cases, you will not have to have a dental exam or an interview, which can save you considerable time. With many dental plans, you will not have to worry about pre-qualifying procedure that may disqualify you from coverage. In many cases, as long as you can pay the monthly or yearly fee you are covered. Even if you do not qualify for traditional dental insurance, you can enjoy lower dental costs with discount dental plans.
There is less disagreement over dental costsWith dental insurance, you may need to send in claims forms, complaints, letters, documents, and other material if the insurance provider refuses to reimburse you as much as you would like or as much as you feel you're entitled to. With dental plans, you know up front how much will save on dental costs. This ensures that there is less confusion and less hassle afterwards.
You will save considerable money with dental plansDental plans work by convincing certain dentists to reduce their costs for plan members. Dental plan companies offer referrals to certain dentists. In exchange, dentists lower their costs for the patients who are referred to them by a plan company. This system can save patients considerable amounts of money. If, like many patients, your main concern is affordable dental care, good dental plans are good way to achieve that.If you want the best dental insurance for you or your family but are finding that the average dental insurance plan does not meet your needs or is more expensive than you had imagined, a good dental plan may be an excellent alternative. A reliable dental plan can also save you considerable amounts of money each year on your dental costs. However, the dental plan can be less hassle than traditional dental insurance. In fact, a dental plan can save you time as well as money while still protecting your teeth and gums.
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