Offering health insurance impacts bottom line in multiple ways

6/20/2011

Last year, President Barack Obama passed the Healthcare Reform bill, which offered small business owners tax credits for providing employees with health insurance. However, the healthcare bill helps in other ways as well, insists Michigan entrepreneur Mark Hodesh.

As he sees it, health insurance is a way to effectively attract high-quality employees. Some small businesses don't offer health benefits - while this might not matter to graduates fresh out of college, older and more experienced workers have come to expect these perks. This makes companies that offer these benefits more attractive to these high-quality prospects.

"[Hodesh offers his employees health insurance] because it hones his competitive edge. Offering coverage helps him hire and retain good employees and that, in turn, helps boost his profits," explains the Huffington Post.

According to Gallup economist Dennis Jacobe, 40 percent of small business owners are hiring less this year specifically because of money issues. This makes hiring quality employees even more important, so entrepreneurs should be sure to offer health benefits to their workers.