There are 28.8 million small businesses across the United States with 56.8 million employees, according to an article published by Smallbizgenius. With all the support that investors are putting into startups, the number of existing small businesses is growing every day. That makes the competition to obtain and retain employees a fierce one.
Startups can’t compete with the salaries offered by large corporations, so they have to resort to using alternative benefits to attract and keep their employees. One such alternative is a solid insurance plan for employees that benefit both the startup and the workers.
How does it benefit your startup?
While the laws regarding a company's workers’ compensation insurance vary from state to state, having a policy will still benefit any startup. For example, if an employee is injured on the job, the insurance policy will define the limits of the company’s liability.
Without a policy in motion, the worker may make an appeal or sue the company. As a result, the startup may end up paying not only the medical bills but also compensate the worker during their entire recovery.
How does it attract and help retain employees?
80% of American employees say that they would prefer a job that offers quality benefits over the same job that offers higher pay, with minimal benefits according to the AICPA. Due to the changes in health coverage, more and more Americans are becoming aware of how a higher salary doesn’t necessarily protect them financially in the event of debilitating sickness or injury. Startups have proven that they can provide success and stability to their founders, investors, and employees as well, but in order to do so, they must take the initial steps to safeguard their finances and their employees.
In fact, finding a job with a big company and slowly working your way up to the top is no longer the only business path people are taking towards financial success and stability. This means that companies offering solid insurance plans for their employees are more attractive for job hunters. Not to mention, existing employees will feel more content with their company, resulting in a boost of productivity and motivation in the workplace.
While there are many ways to do this, workers’ compensation insurance is one of the most beneficial policies whose usefulness carries on even after the startup has grown into an established, booming enterprise.