Employees and Insurance
Some organizations pick up most or the entire tab for health and dental insurance as well as a basic life and disability policy. Others ask the employee to pay a portion of the cost. It is important to know what the prevailing practices are in your area and in your industry. Benefits are one important factor in attracting and retaining excellent employees. Most organizations are asking employees to pay at least a small portion of the cost of health and dental insurance. It is somewhat rare to find an employer that pays the full amount. But some businesses are asking employees to pick up a disproportionate share of insurance costs. A typical arrangement is 25% to 50% paid by the employee. When employees are asked to pay more than half of the insurance premium, it becomes much more difficult to compete for good employees. Today's employee is benefit-sensitive and is concerned about how much of the tab he/she will have to pick up. But bear in mind that when the business pays all or most of the cost of insurance, profits is negatively impacted. In short, do some research to determine what other businesses in your industry and in your geographical area are doing with regard to insurance premiums? Your primary objective is to remain competitive in being able to attract and retain good employees.