For a long time, health care benefits were a given when applying for salaried jobs. But now, with the cost of health care, many small companies are struggling to offer both the expected salary, as well as a full health care benefits package. For this reason, many small companies cannot attract the best candidates the way larger companies that can afford better health care can.
Because the cost of insurance is so incredibly expensive, many companies are laying off good employees to elevate the cost of insurance, and to remain in business.
Health care is currently in a dangerous place in our global society. The costs of health care are rising and the amount that insurance costs businesses is tremendous. Businesses must address the question if the candidate is a serious consideration and would be beneficial to the success of the company.
Businesses need a climate of stability to invest and hire employees in. The cost of health care is going up high, as well as unnecessary regulations imposed by the government. The high cost of health care will increase their cost of doing business, and thus they will not be able to pay their employees as much if they want to remain competitive. In addition, health care costs are unpredictable because businesses don't know how high or what regulations will plague their health care costs. Thus, they are not able to make informed decisions about the real cost of hiring an employee, and so they will not hire people due to the risk of cost overruns.
While it is becoming increasingly hard for small businesses to be able to offer health insurance to their employees, I do not feel this applies to larger businesses. The employees are bearing more of the cost, and they are being asked to undergo health assessments; but, the health insurance is there.
I believe that the cost of healthcare plays a major role in businesses attracting and retaining top employee talent. As the cost of healthcare greatly impacts overall salaries, where those companies who offer the greatest contribution to company benefits, will attract and retain the best employees. While those who offer nothing in the form of employer contributions, will always have a "help wanted" sign.
While all businesses may struggle to cover their employees' health care costs, it does not follow that it would be difficult to retain good employees compared to the costs of retaining less qualified employees. There is no correlation between quality of employee and the costs of health insurance for most individuals.
Businesses aren't having trouble retaining the best job candidates due to the high price of health care, because the ones taking the real hit are the new workers and those who don't try to strive ahead in their work.
It's true that health care is bordering on excessively expensive and, obviously, providing health coverage for any number of employees adds to a business's costs. However, to pin all the blame for layoffs on health care costs is simplifying the matter entirely too much. Other factors, including the rising costs of pensions and retirement (especially as Baby Boomers begin to retire), rising cost of living, and many corporations preferring to pay more to upper echelons (executives, etc.), or believing they can do more work with fewer employees, have all contributed to the recent rounds of layoffs.
A corporation will do a lot to keep their very best employees. Perhaps, they would even give them a better price for health care than other lesser employees. So, perhaps health care could become a spur to retain the best employees, rather than a bar that keeps corporations and their best people apart.
While not having the best health care package can hurt you when looking for good candidates for jobs, it will not stop all good candidates. This is especially true when you have a good payscale for a job, which is generally more important to most candidates than the rest of the benefits offered.
Businesses lose good candidates and good personnel to other businesses because they are either incompetent, run by managers with no people skills, or not offering new opportunities for personal development. The price of health care is not in any way a contributing factor. Staff want to feel valued, get good pay, and to believe that their work is useful. If they get good health care on top of that, that's good, but it is not their first concern.
At today's health care rates, an average policy costs the business somewhere in the area of $1500 per month. This extrapolates out to about $18000 per year. Highly qualified candidates in fields requiring extensive education or training generally are paid a salary far in excess of this amount. Thus, businesses that value highly trained, experienced personnel are not losing employees based on this cost.
Businesses that do not hire highly trained employees tend to either not provide healthcare options to its employers or offer low quality insurance. Being that most businesses searching for lower paid employees are in a similar state, there is no risk of losing prospective employees to another company.
Businesses are having trouble finding and retaining the best candidates because of wages. Benefits are a part of the wage package. Offer an employee a very high salary, and the health benefits can be dropped because employees can afford to buy the health insurance they want on the open market. The socialized medicine and health insurance mandates do not resolve this problem, it actually worsens it. This is because employers lose the option of offering "Cadillac" high end health plans, which are a draw at the upper end of the skill spectrum, while also raising payroll taxes, which decrease the wages employers can offer. Health insurance is only part of what employers offer, and it is not to blame if an insurer cannot find those that it wants. However, government mandates on health coverage can cost employers their ability to offer employees what will bring the best people to the table.
Workers now are in a crunch because it seems that most businesses are trying to do without hiring more workers so there is so much competition for jobs. The question of whether or not a company offers a good health care package often is much less important than it used to be. When there are sometimes 100 people applying for the same job, as happens quite often these days, the employers often feel that they can dispense with a lot of perks like health care without getting too much flack from their employees and certainly not a lot of flack from the job candidates who are just eager to finally have a job.