David Sullivan's picture

Don’t Eliminate Your Full-Benefits Plan Yet

Rising health care costs and vanishing profits have led many small businesses to cut back their health care benefits to high-deductible HSA plans that cover mostly catastrophic events and not much else. Although these plans can make sense to help bolster profits in the short-term and can be popular among younger employees it can become a disadvantage to your firm when labor markets reverse and employers again need to look for competitive advantages when hiring.

An ever-growing section of the labor market has become increasingly more interested in a full-benefits package rather than the size of their paycheck. A growing segment of the workforce is looking at an increasingly distant retirement date, worried their nest egg could vanish at the appearance any medical condition that will require ongoing treatment with a hefty prescription bill to boot. There are many well-seasoned and experienced professionals willing to work for the benefits package rather than higher wages.

Hanging on to your benefits package will give you an opportunity to scoop up these valuable employees at bargain prices when hiring becomes difficult again.

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Comments

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

I disagree. My company has a high-deductible plan plus HSA and it is very successful for both employer and employee. The key is that the company contributes to the HSA. This covers most annual health costs for most employees. The high deductible keeps premiums low. It is a win-win.

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]

[...] More valuable than a great salary? If you’re trying to retain great talent, there are at least two reasons why you should keep attractive benefits plans in place despite tough economic times. 1.) Though it may be hard to believe, the economy and labor market will bounce back and you’ll be competing against employers who can offer more. 2.) One trend suggests benefits are more enticing to some employees than their paychecks. CFO Wise [...]