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Benefits October 24, 2012
Health Care Costs Top Concern for Business Owners
October 24, 2012 (PLANSPONSOR.com) – Health care and the economy
are at the top of business owners’ minds, with more than half saying health
care costs impact decisionmaking.
Reported by Kristen Heinzinger
According to The Principal Financial Well-Being Index, one-fourth of business owners (24%) rate managing the cost and administrative responsibilities of health care as their top concern for the well-being of their business, and another 24% say understanding how health care reform impacts their business is their top concern.
Of the benefits offered by business owners, 92% say the most important to employees is health insurance, followed by a defined benefit plan (86%).
Many businesses are turning to wellness programs to improve employee health and reduce risks. Nearly two-thirds of those surveyed (64%) offer some form of wellness benefit to their employees, including educational tools or resources (28%), online wellness information (25%), printed wellness information (28%), fitness center discounts (25%) and smoking cessation programs (23%).
To encourage employees to participate in the programs, more than half (54%) of employers participate as an example, and 40% allow flexible work schedules to create time for participation during the work day. More than one-quarter (27%) lower health insurance costs for those who participate.
Business owners reported wellness programs have made employees more productive at work (47%); increased employee retention (42%); allowed employees to spend less time away from work (37%); yielded better employee engagement (36%); and lowered health insurance costs (32%).
Almost seven in 10 business owners (69%) agree that an effective wellness program helps employees better prepare for retirement. Regarding retirement savings, one-quarter of business owners think their employees should be saving 6% to 10% of their pay for adequate retirement income. A little more than half (52%) believe employees have what they need to protect their health and income. Only 31% believe their employees are saving enough for a comfortable retirement.
The Principal Financial Well-Being Index: Business Owners survey was conducted online in the U.S. by Harris Interactive on behalf of the Principal Financial Group between August 7 and August 27 among 604 business owners in companies of 10 to 500 employees. This is one in a series of annual studies to identify and track changes in the perceptions of business owners of small and midsized businesses. The full report is here.