Maintaining a competitive advantage is the way to keep your business afloat. And any franchisor knows that at the heart of your business are your franchisees and their employees. So how do you keep the best employees and attract premium talent to your business? Simple! By offering the most attractive health benefits for franchisees in your industry.
Franchisors have avoided providing health benefits for franchisees. This is because it’s difficult to create consolidated health benefits across states lines and ERISA. Additionally, providing health benefits for franchisees and employees can become ridiculously expensive.
Is there a way to simplify the process of getting health benefits for franchisees? We have put together an easy guide on why and how you can offer health benefits for franchisees and employees.
Why You Should Provide Health Benefits For Franchisees
Benefits can become the annoying itch that shows up every month on your bank statement. So, cutting costs by not offering health benefits for franchisees makes financial sense.
By offering health benefits for franchisees, you show your franchisees and their employees that you care about their health. Additionally, you get to take care of your employees if any health issues arise. This means it takes them less time to seek medical attention. With health benefits for franchisees, they don’t have to worry about burning a hole in their pocket when they or their employees need medical attention.
What does that mean for your business as a franchisee? Less sick leave, fewer sick employees, and increased productivity. So, by simply offering health benefits for franchisees and employees, the overall health and wellbeing of your organization improves.
What are the Basic Benefits That You Need to Provide?
By law, there is a minimum set of benefits that you need to provide for your employees. These include:
- Time off to serve jury duty, vote, or carry out military service
- Be compliant with all worker compensation requirements
- The ability to pay for state and federal unemployment taxes
- Contributing to short-term disability programs. This depends on whether this is a requirement in your state.
- Complying with Federal Family and Medical Leave (FMLA) regulations
As a franchisee, these are the benefits that you are not obliged to cater for:
- Vision or dental plans
- Holidays, paid vacations, or sick leave
- Life insurance plans
- Retirement plans
- Health plans (unless you live in the state of Hawaii)
Although you really don’t need to provide these benefits for your franchisees, you stand to improve the lives of everyone in your business if you do. When it comes to health benefits for franchisees, these are the pros and cons of offering them to your franchisees and their employees.
Health Benefits for Franchisees: Pros and Cons For Your Business
As a franchisor, this is how your business wins if you offer health benefits for franchisees and employees:
Attracting and Retaining the Best Talent
The important thing to consider here is what your competitors are doing. To make sure you have the best talent in town, you need to create a package that attracts the talent and keeps them. Health benefits for franchisees is one of the ways that you can do this. Look at what your competitors are offering and look at whether it is financially feasible to match or surpass their packages.
As a franchisor, you need to give interested franchisees a reason to pick your franchise over any others. Something as simple as health benefits can make that decision easier for a franchisee. If you offer health benefits that extend to the franchisee and their employees, that does two things. One; it gives the franchisee an added reason to pick your franchise. Two; it allows the franchisee to attract the best talent to work for your franchise. So, when it comes to offering health benefits for franchisees, everyone wins!
Receiving Tax Advantages
By offering health benefits for franchisees and employees, you are able to increase their compensation package. Plus, you can receive an income tax deduction for the contribution. This means that the costs to your business are less than the value of the benefit for your employees. These tax deductions can extend over all the benefits in your package, such as:
- Insurance options
- 401k match
- Pension contributions
Increasing Group Purchasing Power
If you can’t pay for health benefits for franchisees and employees, you can give them the option of obtaining a group rate through your business. By doing this, they will be able to get discounts by virtue of applying as a group. Businesses with 50 employees or less can also qualify for government-run insurance. These can be found under the Small Business Health Options Program (SHOP).
An even cheaper alternative would be to go for medical cost-sharing with Scoop Health. With Scoop Health, your franchisees and their employees can pay between 30 – 60% less than traditional health insurance. That is definitely going to make health benefits for franchisees look even more attractive.
Health and Wellness of Your Employees
It goes without saying that having a healthy workforce leads to increased and sustained productivity. In some cases, employees can delay or avoid seeking medical attention because they simply cannot afford it.
If you provide your franchisees and their employees with health benefits that give them access to preventative care, that means less time on sick leave. When it comes to health benefits for franchisees, your business wins when the employees do too. So keeping them healthy means more returns for your business.
Unfortunately, there are a few downsides to offering health benefits to franchisees and employees. These include:
The Financial Punch
Truth be told, this is the first thing on everyone’s mind is “how much will all of this really cost?”. The cost of healthcare in the United States has risen tremendously. It is so expensive that a study by the Journal of the American Medical Association showed that only 90% of American’s have health insurance. Between 99 – 100% of people in other industrialized countries (such as the UK, Canada, and Germany) have health insurance. This just goes to show how expensive health care really is in the US.
There is room for improvement, but while we wait for the cost of healthcare to decrease, we need solutions. One of the most innovative solutions for health benefits for franchisees is medical cost-sharing from Scoop Health. By offering them this option, you can all experience savings and high-quality healthcare.
Let’s face it. You have yet to meet someone who enjoys that part of the day where they get to sit on the phone with their insurance company. These are the kinds of hassles you will have to deal with by going the traditional health insurance route.
With medical cost-sharing, we have cut out the proverbial middle man. This means you deal with us directly, leading to lower overheads and more savings for you. Medical cost-sharing is a simple solution for providing affordable health benefits for franchisees.
Picking the “Right” Package
As a franchisor or franchisee, you can understand that your workforce is made up of people who each have unique needs. So trying to find one package that caters to everyone’s needs is a gargantuan task! Ideally, you want a package that gives you something for everyone. This may not be as straightforward as it sounds.
With all of these complications, it would be great to have a partner to make things easier and cheaper for you. This is why medical cost-sharing is ideal as a health benefit for franchisees and their employees.
How to Include Medical Cost Sharing From Scoop Health as Part of Your Health Benefits for Franchisees
If there is one thing we have learned from the COVID pandemic, it’s that even the healthiest of people could end up needing medical care. When life hits you or your employees so suddenly, it would be nice to know that you have a family in your corner that is willing to help with the costs.
This is where Scoop Health comes in. We have an exciting alternative to traditional health insurance. Medical cost-sharing is a solution that works perfectly for franchisees, families, and employees. With medical cost-sharing, you have access to high-quality medical care at a fraction of the cost. Our medical cost sharing community of like-minded people pays a monthly contribution. This amount is added to a pool and then used for your franchisees and employees in their time of need.
With Scoop Health, there are no network restrictions. So you can see whichever doctor you want to. And you get to pay cash, meaning that you can negotiate for discounts. Your doctor will love you for paying cash because this means they don’t have the hassle of dealing with an insurance company. And the best part? You can sign up at any time during the year.
By offering an affordable alternative, you can be sure to have a competitive advantage in your industry. Something as simple as word of mouth will have the best talent begging to be hired by you. Health benefits for franchisees can really make the difference for franchisors and employees. So contact us today and find out how you can become a part of the medical cost sharing revolution with Scoop Health.