Employee Benefits for Texas Small Business

There have been endless surveys and studies done by far more scientific processes than those available to me, so I will generalize.

Ask the average working American what they want in their employee benefits package and they will say:

1. Health Insurance

2. Retirement Plan

3. Dental

4. Disability

Any business owner can tell you that health insurance is a necessary evil and testify to the fact that costs have increased nearly 87% since 2000.  It is a disturbing trend that is stresses the financial tolerances of all parties, employer and employee alike.  As a benefits specialist, I am concerned to see fewer employees opt to insure their families because it is simply too expensive.  Beyond the obvious, this trend leaves the employee one incident away from financial ruin.

Retirement planning is a benefit best handled elsewhere, although I am encouraged by how much of a priority it appears to be with employers and employees alike.

Dental insurance and its rank in the list perplexes me.  Employees want comprehensive coverage, of which, there is essentially no such thing.  The typical plan charges $50 a month for a maximum benefit of $1500, most of which is never realized.  I invite employees to put $50 a month in a folder in their dresser and then use that money for their dental care and see if they don’t come out ahead. 

Disability insurance is fourth and for most of middle class American should be higher on the list.  The single most important asset an employee has is their paycheck.  The paycheck is also their single largest risk without protection.  Employers often opt for long term disability because they can pay for the entire group and it is very inexpensive.  Unfortunately, the overwhelming majority of disability need is short term (less than one year).  Ask the average middle class American if they can go three months without a paycheck and they look at you as if you asked a stupid question.

So, what is the answer?  Read the next post about the value proposition of voluntary benefits.