Many factors impact your company’s ability to attract and retain the talent you need to succeed including your company’s reputation, the ability to offer competitive pay, employee benefits offering, organizational culture, diversity, equity and inclusion initiatives, as well as a host of other offerings and characteristics.
While professional employer organizations (PEOs) typically provide a spectrum of HR-related services including payroll administration, risk mitigation, HR expertise, workers’ compensation and a technology platform, access to comprehensive employee benefit plans are key for ongoing recruitment and overall employee satisfaction.
The problem is that for over a decade, health care premiums in the U.S. have continually outpaced the overall economic growth1 . This has created problems for businesses and individuals, especially with the current uncertainty of the COVID-19 pandemic. National health spending is projected to reach $6.2 trillion by 20282 and small-business owners are increasingly concerned about the ability to provide adequate health coverage to their employees. However, employer-based health insurance likely is a necessity when it comes to attracting and retaining top talent in various industries and business owners shouldn’t feel limited in their choices.
While, many small businesses have found that, in the past, many employee benefits plans are not available for small businesses and are reserved for large companies, a PEO leverages the collective strength of thousands of small and medium-size businesses to deliver access to premium-level, large group benefit plans. While this gives business owners access to benefits for their employees, it’s important to understand some crucial information about prospective health insurance plans and their benefits.
Health insurance costs are rising and many small to medium-size businesses (SMBs) carry the burden of increased premiums. This is often due to disproportionate cost sharing between employers and employees, which is referred to as a “leveraged trend.” Leveraged trends occur when rising premiums are counterbalanced by increased co-pays and deductibles, thus leaving SMBs vulnerable. However, supplying comprehensive benefits packages are essential to business growth and development. This is where a PEO can be valuable.
PEOs provide access to large company benefits that otherwise may not be available to SMBs. They also provide insight, clarification and communication surrounding complexities that arise during employees’ health insurance selection and included benefits, co-pays and deductibles. SMBs may see results that improve savings while contributing to a healthier, happier and more productive workforce.
While working with a PEO will provide SMBs access to big-company advantages, it’s still important to offer a strong employee benefits plan. In order to mitigate rising costs, SMBs need to make an informed decision about their health benefit funding strategies. To overcome the competition for talent, business owners should consider providing high quality health insurance with individual choices and reasonable cost sharing. To help you make the right decision, here are seven important questions to consider before choosing the health insurance your company will offer.
Many SMBs lack the experience, expertise or resources to shop for and ask questions regarding cost-effective benefits packages. Don’t let high premiums and inadequate coverage restrain innovation and growth within your small to medium-size business. By working with TriNet, you’ll have access to national and regional health insurance carriers so you can attract top talent in a job market where employees and their families place value on the quality of coverage. TriNet provides the resources that small to medium-size business owners need to offer a compelling benefits plan that shows your employees how much you care. You’ll gain access to premium health insurance benefits that extend beyond medical, to dental, vision, life, disability, retirement, transit and a wide range of non-traditional benefits.
1 "Why health-care costs are rising in the U.S. more than anywhere else," CNBC (2022)
2 "How has U.S. spending on healthcare changed over time?” Health System Tracker (2022)
3 "Employees Are More Likely to Stay If They Like Their Health Plan” SHRM (2018)
4 Survey conducted by TriNet between May 14 and 21, 2018 with approximately 3,000 respondents who were all employees of TriNet clients.
5 "The Benefits of Benefits to SMBs,” TriNet (2020)