Startups are usually small businesses and initially financed and operated by a handful of founders or one individual. In the early stages, startup companies' expenses tend to exceed their revenues as they focused on developing, testing and marketing their idea. As such, the idea of offering employee benefits including health insurance may seem counter-productive for their already limited funding.
But with a vast variety of insurance providers and plan options, subscribing to health insurance may be just a matter of choosing the right plan that suits their financial limit. The lack of awareness on various insurance plans available in the market may hinder startups from offering it to their employees. But with the help of some guidance, a startup can find a matchable insurance plan that will not only provide an essential incentive for their employee but also offer other benefits that health insurances entail:
1. Attract and retain talents
Benefits are valuable to employees and contribute tremendously to job satisfaction. In fact, benefits like health insurance can be a weighting factor in attracting the best talents just as much as advancement opportunities and company culture are. Given that recruiting is a massive investment of time, this can be a good added value when offered to potential talents to join the startup.
It will also reinforce a sense of security for employees amidst the risky backdrop associated with joining a startup. This trust factor for employees helps in retaining the workforce and prevents high turnover rate that can cost time and funds spent on recruitment.
2. Cost-Effective Plan
A startup is more likely to be constituted of young employees in the team. Hence, considering the age factor, a cost-effective plan can be made available through health insurance plans that meet minimum value requirements. This can serve as an important initiative for the employees even if you cannot offer other lucrative employee benefits yet. With the increase in many insurance options, competitive pricing is also easier to find in the market.
3. Long-term investment
As a sense of financial stability and peace of mind is cultivated in your employees, productivity in the workplace will flourish. A comprehensive health insurance plan for your employees facilitates motivation as it provides a financial shield at the time of medical emergencies. It should really be considered as the basic cost of doing business as you will reap its benefits in the long run.
4. Boost company reputation
A comprehensive health plan will not only attract better talent, but it will also boost the overall company image and help the company rank better and stand out from the crowd in the employment market. This in return will also encourage an investor to trust your company as insurance is also a measure to avoid risk. Hence, through insurance, a startup can increase its values and credibility in the marketplace.
5. Protective measure
Your employees are your greatest assets. Health insurance, in general, is a protective measure against future risk while providing a reasonable support for your employees in case a health issue arises. Particularly in a small business where your personnel may deal with more than one job scope, health insurance may help them to recover faster and consequently prevent further disruption in the day-to-day operations of your company.
Whether an employee suffers an injury on the job, sudden illness or needs medical attention for a chronic condition such as diabetes, health insurance will be able to provide the support that your employees can always benefit from.
As a startup grows towards developing scalable business models and becoming a full-fledged company, the vulnerability of the company means that health insurance can be a much-needed support. In times where employees’ illness or injury can affect the business operation, having an employee health insurance plan can give you the peace of mind to recuperate.
Even if the funding is limited, there are competitive packages available across a range of budgets.
Contact Luma today to speak to our solutions consultants about finding the plan that will help get your startup off the ground.