Download Our Guide: How to Build Better Benefits
Download this guide to learn about how you can provide better benefits for your employees while managing costs.
How much employee benefits cost per employee depends on several factors. Every business has to offer certain benefits. Beyond what is legally required, companies can choose to offer voluntary or supplemental benefits that add to the total cost of employee benefits.
Benefits are critical to attracting and retaining talent—especially in a competitive job market. In fact, nearly 80% of workers would prefer new or additional benefits to a pay increase. The benefits in high demand? Healthcare insurance, retirement planning and matching, and paid time off. Unfortunately, due to the rising cost of healthcare premiums, only 30% of organizations with fewer than 50 people offer group health insurance.
With the rising cost of health care and the high demand for benefits from employees, employers need to reassess and understand the cost of employee benefits.
First things first—there are three types of benefits included in the total cost of employee benefits:
Wages make up about 70% of an employee’s total compensation. The other 30% or so is made up of benefits. Here is a detailed breakdown of employee benefit costs per employee, per month.
Note that the actual cost of healthcare insurance per employee per month can be quite a bit higher depending on the rate businesses receive. Average costs per employee based on the open market can be anywhere from $400 to $800 per employee per month.
Health insurance costs will only continue to rise as premiums increase year after year. But it’s still an important benefit for employees. The greater the amount that employers can cover on healthcare insurance premiums, the more attractive their benefits package and job offers become.
Most benefits are manageable costs—the exception is healthcare insurance. Unfortunetly, many companies struggle to find affordable healthcare insurance for their employees. The U.S. healthcare system is complex and confusing with an overwhelming amount of plan choices and coverage options.
Access to quality health insurance is limited for small businesses. Small businesses struggle to find cost-effective plans and premiums on the open market. With Obsidian HR, businesses can get access to large group plans that offer customization, richer benefits, and perks—at better rates.
If you’re interested in learning more about our healthcare insurance options, reach out to us. In the meantime, download the guide below to learn more about how you can provide richer, more cost-effective employee benefits for your company.