How to Reduce Healthcare Costs for Your Business

Healthcare costs can be a significant drain on many small businesses bottom line and are an important consideration when planning operating costs and budgets. Small businesses often struggle with attracting and retaining top talent when the costs have having an attractive benefits package becomes a burden. While you can’t stop employees from quitting, you can give them more reasons to stay. And one way to do so is by offering a competitive healthcare benefits package. We've made it easy for you to make sure your benefits package is top-notch—just sign up here for an easy 15-minute consult. 

As a business owner, when it comes to purchasing healthcare services for your employees, it can be a tricky course to navigate. In fact, many business owners do not have visibility into true costs when it comes to healthcare services and are spending much more than necessary simply because of a lack of transparency by healthcare companies. The fine line between employee satisfaction and cost management is often blurred when HR is not properly managed.

“U.S. employers make a lot of mistakes purchasing healthcare services for their employees. The mistakes are uncharacteristic for the typically intelligent and frugal business managers who lead some of the country’s greatest organizations. While correcting mistakes will make an organization better, correcting healthcare purchasing mistakes has the added benefit of significant bottom line enhancements.” – Forbes

So how can small business owners avoid costly mistakes, yet still provide innovative and comprehensive healthcare options to their employees?

By partnering with a PEO that has a team of HR experts who are dedicated to helping businesses manage complex processes like healthcare services, dental plans, and flexible coverage options. In fact, our clients see an average savings of 12% on healthcare. Here are a few key benefits to look for when outsourcing your HR needs:

Buying Power

Look for a vendor that has a portfolio of providing healthcare services to thousands of employees. When your employees are combined with thousands of others from other clients, you can leverage the buying power for better, stable pricing and coverage options for health insurance and other employee benefits at discounted rates — and those savings get passed onto you. That means you can offer better employee benefit options — options that fit your employees’ lifestyle needs and make you a more attractive employer to both current and prospective employees.

Strategic Relationships

Partnering with an HR outsourcing provider that has strong ties with widely known healthcare plan providers gives your employees access to some of the best and most affordable benefit packages available. They work on your behalf with trusted providers to secure top-notch benefits and perks so you can offer “big business” benefits to your employees.

Reporting and Optimization

The true value of partnering with a HR outsourcing provider is the ability to control your costs and grow your business. A vendor that can provide real-time reports on invoice and billing, employee benefits, and cost allocation gives your business the power to optimize and manage benefit costs. Plus it’s a full-service offering so guidance, compliance, technology, open enrollment, guidance on the Affordable Care Act reporting and more are all managed by your PEO.

It’s crucial for business owners to build employee engagement and loyalty before turnover takes a toll on your profits. Good benefits increase employee retention, which in turn makes you a more attractive employer and saves you money in the long run. In order to ensure you have the right partner to manage your employee healthcare, sign up for our free consultation for your small business.

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