Learn how to effectively control the price of important employee benefits
As a responsible small business owner, you want to provide health care coverage to your employees. Medical professionals agree that both the quality and quantity of workplace productivity increase when your employees are in good health and have access to good health care. As the cost of health care continues to increase nationwide, you can both lower and more effectively manage your employee health care costs by partnering with a Professional Employer Organization (PEO).
When you enter into a co-employment relationship with a PEO, you immediately have access to better quality health care coverage solutions. An outsourced HR provider first negotiates on your behalf from a position of collective strength and then conducts all the administrative functions on your behalf. This tandem approach delivers lower costs for both your business and your employees.
Lower Costs with Negotiating Power
If you’ve ever explored purchasing a health insurance plan for your small business (or even yourself!), you know it can be expensive. Because PEOs are able to leverage the employees of all their clients, they have strength in numbers when it comes to negotiating a good price from an insurance company.
Think of it this way: the per-unit price of a roll of paper towels is lower when you buy 30 from a wholesale club like Costco than when you buy a single roll from the tiny convenience store in your neighborhood. Because you’re buying more product in one fell swoop, you can secure a better overall price.
It works the same for insurance. Instead of you approaching the insurance company with just a handful of employees (no matter how large the bottom line at your small business), your PEO comes to the negotiating table with hundreds or even thousands of employees from several reputable companies. It’s a more lucrative overall deal for the health care provider, and your PEO can offer you and your employees lower health care costs.
Lower Costs by Increasing Your Time
It’s true – time is money. You probably feel discouraged by both the price of good health insurance and all the time-consuming details involved in human resources administration (even for the smallest of businesses). When you choose to join forces with a PEO like G&A Partners, you gain back the time to improve the product or service you provide to your customers, instead of handling insurance paperwork or answering employee questions about their coverage options.
More tangibly, the fees you pay to a PEO to have them manage your benefits are often less than the cost of keeping a full-time HR professional on staff at your company. And if you took care of these issues yourself in the past, going with a PEO gives your employees the opportunity to speak with a dedicated and experienced team of HR professionals about their needs, while giving you back precious time to focus on growing your business.
Ready to reduce your employee health care costs AND the time you spend on HR paperwork? Let’s talk!