Small businessmen, such as myself can and should take pride in the fact that our ideas and efforts fuel the economic growth and prosperity of San Diego County and the entire nation.
By keeping a watchful eye on the bottom line, our industrious workforce has successfully created one of the richest and most enviable counties in the state.
But before we pat ourselves on the back too much, we should be aware that most small businesses don’t offer health insurance. In California, a whopping 59 per cent of businesses with fewer than nine employees have no medical insurance for their workforce. Businesses in the 10- to 50-employee range do somewhat better, but even in these sizable companies, 38 percent do not provide health insurance.
In San Diego, there are a huge amount of small business owners. Ninety-five per cent of these businesses have 50 or fewer employees , that’s 70,000 businesses , and most don’t offer health insurance.
Cost, of course, is a major consideration. Entrepreneurs focus more on the bottom line instead of the big picture. Ironically, in many cases, medical insurance is less expensive and easier to administer than anticipated, especially in today’s environment of managed care plans and increased cost-sharing with employees.
Benefits Outweigh The Costs
The benefits of offering health insurance far outweigh the costs:
– Structuring your benefits plan properly , with an eye on the quality and cost of care , can help you attract and retain the best employees. Not only does a medical plan support work force stability , really good people won’t stay in a job very long without benefits , it also sends an important, empowering message to employees that the owner cares. As with any benefit, it’s important to ask employees what their needs and wants are and then do for them what you can. First and foremost, listen to what they have to say.
– Health care benefits cost far less than training. I have found that health care insurance costs about $1 per hour per employee, a nominal amount when you compare it to the costs of turnover. In my company, turnover is only 6 percent, compared to the manufacturing industry average of 15-20 percent.
– If more small businesses offered health insurance, the costs of health care would go down. Who do you think pays that $2,000 bill for your uninsured employee’s visit to the emergency room? The cost is passed along to you, me and anyone else with insurance or who pays local taxes.
– Just as our nation relies on small businesses, so do small businesses rely on their work force. Health insurance is the second most coveted fringe benefit in America today , second only to paid vacation. How can you not afford to keep your employees insured?
Value, Profitability, and Individualism
Employees share in all of our successes. My company puts the wants and needs of our employees first , and the tradeoff is productivity. We focus on value, profitability, and individualism. In addition to offering health care, we offer a complete benefits package that costs us a total of $3.25 an hour per employee, including heath insurance.
Our employees have a high level of confidence and we try to compensate them as best as we can. I respect all the people that work for me , they are not only my employees, but also my friends. When I look after their interests, they look after mine.
So, here’s the real bottom line: Business owners would do well to remember that relationships in a small company are crucial. When you look after the interests of your employees, they look after your interests. Ensuring that the people who work for you are healthy makes good business sense. You really can’t afford not to keep your employees healthy.
Wray is president and CEO of BioFilm, Inc. and employs 38 individuals at his company in Vista.
