According to a number of reports, today’s American job market is booming. While that’s great for American workers, it’s a struggle for the service industry to find quality workers.
Would offering insurance to employees in the service industry help bring in more qualified workers?
Traditionally, Offering Insurance in the Service Industry Hasn’t Been Needed
In the past, it was relatively easy to find people looking for service industry work. In fact, you probably turned away far more applicants than you hired. In today’s market, the “now hiring” sign outside your business never gets taken down.
In a booming economy, workers have a lot of options in the $12 – $15 per hour range. And the vast majority of those non-service industry jobs offer insurance to their employees.
To compete, it’s probably time to look into how you can affordably offer insurance to your employees. It’ll bring in a higher caliber worker and increase applicants.
Some Insurance Is Better Than No Insurance
While you probably can’t afford top-tier insurance plans for your employees, you might be surprised at how affordable many insurance plans are.
Most people looking for service industry jobs don’t expect ultra-low premiums and tiny co-pays. They understand that some insurance is better than no insurance — especially in cases of health emergencies or disasters.
For example, say an employee was to get in a car accident and required an extended stay at the hospital. The average hospital stay is over $15,000. Most service industry employees will never be able to afford that.
However, by offering an inexpensive insurance plan, they might only have to pay $2,000 – $5,000 out of pocket. This will make a big difference in their lives.
Offering Insurance Shows That You Value Your Employees
Beyond recruiting new service workers, you want to keep them on board as long as possible. This saves on the time and cost of constant recruiting and training.
Service workers that are given an insurance plan are much more likely to stay with you for the long haul. They’ll see that you value them and count on them to run your business consistently.
If you don’t offer any insurance, chances are they’ll jump at other opportunities that pay a similar wage and give them the ability to get covered under an insurance plan.
Be an Innovator
Just over 14% of restaurant workers receive any type of health insurance plan from their employer. That’s a disappointing statistic.
Be an innovator in your industry and start offering your employees health insurance as soon as you’re able to reasonably afford it.