When you’re running a small business, your people are your business. They help you grow, serve customers, and build the kind of reputation you’re proud of. But here’s the reality: in today’s job market, talent is harder to keep—and benefits play a big role in why employees stay or leave.
If you’re not offering a group health insurance plan yet, you might be losing great employees to companies that do.
Let’s break down why group employee health insurance is more than a perk—it’s a smart, strategic investment that can directly improve employee satisfaction and retention.
Health Insurance: Still the #1 Most-Valued Benefit
You might think salary is the biggest factor in keeping your team happy. But surveys consistently show otherwise.
According to a Glassdoor study cited by eHealthInsurance, nearly 4 in 5 employees said they’d prefer additional benefits over a pay raise—and health insurance ranked as the most important benefit.
Another SHRM report found that 92% of employees consider health coverage to be a key driver of overall job satisfaction.
In short: if you’re not offering group health benefits, your competitors probably are—and that’s costing you.
What Group Health Insurance Signals to Employees
Offering small business group health insurance sends a clear message to your employees: you matter here.
It shows that you:
- Care about their well-being
- Are invested in long-term employment
- Want to reduce their financial stress
This builds trust, loyalty, and a stronger workplace culture—one where people feel valued and supported.
What You Risk Without a Group Plan
Let’s flip the script. What happens if you don’t offer a group plan?
- Increased turnover: Replacing an employee can cost 50–200% of their annual salary, according to Pazcare. That adds up—fast.
- Lower morale: Employees who feel unsupported are less productive and more likely to disengage.
- Losing talent to competitors: Skilled workers won’t think twice about leaving if another job offers better benefits.
Why Small Business Group Health Insurance Pays Off
Offering a group health plan may feel like a big step—but for most small businesses, the return is worth it.
Here’s why:
1. It Helps You Hire and Keep Top Talent
Today’s candidates expect benefits. With a group health insurance plan, you can compete with larger companies by offering coverage that matters.
2. It Reduces Absenteeism and Increases Productivity
When employees have access to regular care, they’re healthier—and less likely to miss work due to untreated illnesses.
3. It Builds a Stronger Company Culture
Employees who feel cared for are more likely to stay long term, refer others to your business, and go the extra mile.
4. It Can Save You Money Through Tax Credits
Depending on your company size and average salary, you may qualify for the Small Business Health Care Tax Credit, which can cover up to 50% of premium costs. That’s a big incentive. Not sure how much coverage might run you? Here’s what you can expect to pay for small business health insurance.
What Kind of Group Health Insurance Can You Offer?
There’s no one-size-fits-all answer—but that’s the good news. Today’s group health insurance plans are more flexible than ever.
Options include:
- Traditional group health insurance (like PPOs and HMOs)
- Level-funded plans (predictable monthly costs + claims refunds)
- QSEHRAs (Qualified Small Employer Health Reimbursement Arrangements)
- Supplemental health plans (dental, vision, accident)
A trusted group health insurance broker can help you compare plans, find cost savings, and walk you through compliance details.
The Bottom Line
When you offer group employee health insurance, you’re not just ticking a compliance box—you’re investing in your people. And that investment pays off in stronger retention, higher satisfaction, and long-term growth for your business.
Even if you’re a team of just two or three, there are small group health insurance options designed for businesses exactly like yours.
Ready to Explore Your Group Health Insurance Options?
We help small businesses every day find the right group health insurance plans for their teams—simple, affordable, and built to grow with you.
To get started, simply enter your ZIP code in the box on the right side of the screen or give us a call at (888)-571-0291.
