By Rich Bond
Healthcare costs seem uncontrollable, and as a consequence, many businesses try to cut back on what they offer employees.
Entrepreneur Magazine recently ran an article about the issue, claiming that Health Reimbursement Accounts can help. Still, “more than half of small businesses find themselves unable to offer health benefits – and lose talent as a result.”
I think it is a false economy to offer lesser healthcare coverage. The biggest asset any company has is its people. Healthcare coverage can be a powerful tool for recruiting and retaining talent.
My wife took a job that offered healthcare coverage after I started my own business. Her employer got a great employee and our family benefitted.
My experience is that there are many other less sensitive cost areas that small businesses can and should look at for cost savings including insurance, office supplies, telephone, and shipping. For any area with multiple suppliers, finance should be checking on a regular basis to make sure the company is getting a competitive price. There may be opportunities to get a better service at the same or a lower price by shopping around.
Business is tough today, and companies shouldn’t be wasting money. But saving money smartly requires time and effort. Don’t just have a knee-jerk reaction to a cost increase. Rather, make an ongoing effort to find and create value.