Here’s a story about how employee health benefits decided the fate of two franchises. Moral of the story: employee health benefits are vital for success.
This is a tale of two franchises and two leaders who made very different decisions. This first franchisee used employee health benefits as fertilizer for his franchise. The franchise grew like a mighty oak, its roots firm, and its sweeping limbs heavy laden with acorns. The other starved like a weed – ill-equipped to survive lean times and barely scraping by. Like storybook heroes, the first franchisee proved that happy endings come to those who strive for greatness. But the second franchisee learned that cutting corners is never prosperous. We’ll begin as most great stories do:
Once upon a time, there lived two brothers who dreamed of being successful…
Always competing, our two brothers set off to find success in the dazzling franchise industry. Determined to beat the other, each brother worked hard to build up their franchise businesses. Little did they know that each had a very different idea of what ‘winning’ looks like. You see, the older brother believed that success was measured in how much money he could stack-up quickly. So, he led with profit as his primary driver. The younger brother saw success as longevity and stability. He focused on building a solid foundation and a business that would increase in value over time.
You’ve read enough stories that we don’t need to tell you which business flourished and which withered. The older brother paid only minimum wages thinking employees were ‘a dime a dozen’. The younger brother rewarded employees with pay increases and health benefits. In the long run, the younger brother’s business became far more successful than his brother’s. It survived all economic seasons and weathered financial storms. Two brothers, same initial goal, same capabilities – why did their stories end so differently? It’s a basic narrative. The end of the journey very much depended on the choices they made along the way. The younger brother chose to invest in his employees while the older brother cared only for his own personal gains.
Why Did The Younger Brother Provide Employee Health Benefits?
While researching how to build a successful business, the younger brother stumbled upon a term – employee health benefits. Employee health benefits are extra perks, rewards given to employees on top of their wages. From medical insurance, he read about profit-sharing, and retirement benefits – the list of employee perks were endless. Suspicion and doubt entered his thoughts. He wondered if ‘doing more than paying my employees base wages will bankrupt me’. Thank goodness he continued reading.
He learned that offering employee health benefits is the foundation to building a successful franchise business. Providing employee benefits shows your employees that you care about their health and future. In turn, your employees will care about the health and future of the franchise. Employee health benefits nurture the symbiotic relationship between the franchisee and their workforce. Franchisees and employees always end up counting on each other for their mutual benefit.
What Tangible Success Did Providing Employee Health Benefits Bring?
Armed with this wisdom, the younger brother knew that the only way for his business to grow was to offer employee health benefits. He knew this would reward and strengthen his loyal workforce. The longer and stronger they were with him, the better the business would perform. The better they performed, the more successful the franchise as a whole would be. He realized his business growth was directly tied to hiring great people and rewarding his employees with great health benefits.
Here are some of the lessons the younger brother gained by giving employee health benefits a try:
Attracting the Best Employees
Gone are the days where competitive wages will hold on to a talented employee for very long. Employee health benefits are a make-or-break factor for most talented people looking for a career opportunity. You don’t just want people who punch a time clock and work for you, you want employees who want to work for you. It turns out that when it comes to employees, loyalty is a two-way street.
You need to make your job opportunity stand out if you want skilled and dedicated people to apply and join your workforce. Offering employee health benefits increases your appeal to A-list candidates. It shows stability, confidence, and a desire to invest in employees. People want to join organizations where there is room for them to grow professionally and personally. By giving your people employee health benefits, you give them very valuable peace of mind, and that is something essential to living a full and happy life. Employees will show their appreciation with loyalty and hard work in your business.
Increasing Retention Rates
In general, the longer an employee works for you, the better they will understand your business and the processes that make you money. This makes them uniquely qualified to solve your customer’s problems quickly and effectively, even when you are not around. Retaining key employees makes your business smarter, more efficient, and successful. It’s sometimes called ‘business intelligence’, but when it walks out the door because you don’t have health benefits, it’s gone. Using employee health benefits is a great way to foster loyalty and keep growing the value of your business.
Employee health benefits help your employees to have a better work-life balance. It eases the hesitation and fear of being able to care for themselves and their families. This tends to lower employee turnover because employees are more likely to stay in a job where they feel appreciated and valued. Providing employee health benefits helps establish a core team of leaders who know the business as well as you do. This team will stick by you and help build your business for years to come as long as they feel a sense of loyalty and appreciation for their contribution to your success.
Better Work Performance
Offering employee health benefits has been shown to improve employee’s job performance and career outcomes. Investing in your employees shows that you value them which motivates them to go the extra mile with you. Across your entire group of employees, this results in esprit de corps and loyalty to the company. Great benefits are one key to boosting morale and giving employees a reason to care about the company and its success.
Improving Worker Wellness
Letting employees focus on their work instead of worrying about their health makes them more stress-free and efficient. Easy access to healthcare means employees can take care of their health in a more sustainable way. Instead of waiting until they are too sick to move, your employees can go to the doctor more often and need fewer sick days as a result. Reducing their financial stress over access to health benefits also contributes to your employees’ overall wellness. In the long run, this saves you money and is healthy for your company’s bottom line.
So How Did the Story End?
The younger brother’s employees loved working for him and talked about his business on all the social channels. This chatter spread through social networks and into boardrooms, attracting even greater opportunities to his door. The workplace culture he created led to better retention and outstanding growth as he added more franchise locations and brands to his franchise portfolio. His long time managers carried on the tradition and hired only the best employees who were skilled, dedicated, and created an unmatchable customer experience. When others looked at the business they saw a stable and powerful brand and wanted a similar piece of the franchise.
The younger brother was able to work on the business instead of in it because he had a loyal team he trusted and could rely on. And so his business grew and expanded, overtaking his brother and his competitors. His employee focus was the difference between a stand-alone business and a franchise empire. It all started with a simple choice: fast cars or – employee health benefits.
Now, the older brother might not have heard of employee health benefits. But that’s unlikely. But if he had provided them, maybe his business would not have been so easily uprooted. He chose rather to consider employees as replaceable. They became overworked, underpaid, and, with no rewards in sight, felt unappreciated. It didn’t take long before his employees were comparing notes at the water cooler. They were not talking about baseball, they were trash-talking him. One by one they made customers mad. They started finding other jobs and left without a word. Of course, they told friends and gave him bad marks on Glass Door and other job seekers had a good reason for second thoughts. Eventually, no one applied to work for the older brother. They knew he didn’t take good care of his employees. Without a loyal workforce, he started to recruit his family members off the couch. They worked for cheap wages to help keep his struggling business keep going.
The Moral of the Story
Every good story comes with a good lesson – a moral if you will. The tale of the brothers shows us that choosing profit over people is never prosperous. For franchisees especially, building a strong foundation of trusted employees is imperative to success in any business. So how can you follow the path of the younger brother? Enter Sedera medical cost-sharing an affordable alternative to health insurance.
Medical cost-sharing is the perfect employee health benefit for any franchisee in this situation. The membership model provides affordable, accessible healthcare and gives employees choice and control. Helping them with the cost but allowing your employees to customize their healthcare shows that you care about them. That is what Scoop Health does with medical cost sharing and the new Individual Coverage Health Reimbursement Accounts, ICHRA.
Your employee health benefits should mirror the collaborative ethos of your organization. Giving your employees a choice between health insurance and more affordable medical cost-sharing just makes them feel more appreciated. Scoop Health can show you how to combine the new ICHRA and medical cost sharing into a health benefit you can afford and employees will love. . Scoop Health can help you navigate this path and cultivate happy, healthy employees. You won’t have to worry about retention or loyalty anymore – it’s a win-win for all parties.