5 smart financial investments small businesses should make in healthcare benefits
Photo by Yan Krukau
Providing competitive healthcare benefits is no longer just an option for small businesses – it’s a strategic investment that directly impacts employee satisfaction, retention, and overall productivity.
In today’s workforce, employees expect more than just a paycheck. Workers seek well-rounded health and wellness benefits that support their physical and mental well-being.
This blog will talk about five smart financial investments small businesses should make in healthcare benefits to remain competitive and take care of their teams.
1. Comprehensive group health insurance plans
Offering a strong group health insurance plan is one of the most effective ways to attract and retain top talent. While some small businesses assume they can’t afford comprehensive coverage, strategic planning can help them find cost-effective solutions.
Some things to keep in mind include:
- Consider level-funded or self-funded plans: These options provide flexibility and potential cost savings compared to traditional insurance.
- Explore association health plans (AHPs): Small businesses can join together to access better insurance rates.
- Offer tiered plans: Providing multiple plan options allows employees to choose coverage that best fits their needs and budget.
By investing in a well-structured group health insurance plan, small businesses demonstrate a commitment to their employees’ well-being, leading to increased loyalty and job satisfaction.
2. Mental health and wellness programs
As mental health awareness grows, businesses that prioritize emotional and psychological well-being stand out in the job market. Implementing mental health benefits, such as access to counseling and stress management resources, is a wise investment.
Other tips for employee mental health include:
- Provide access to employee assistance programs (EAPs): These programs offer confidential support for employees facing personal or work-related challenges.
- Encourage flexible work arrangements: Hybrid and remote work options can help reduce stress and improve work-life balance.
- Make therapy accessible: For example, businesses in Georgia can use Rula to find a local Georgia therapy appointment to ensure employees have access to localized and convenient mental health resources.
Ensuring mental health resources are easy to access can make a significant difference in employee well-being and productivity.
3. Preventive care and wellness initiatives
Investing in preventive care not only keeps employees healthier but also reduces long-term healthcare costs for businesses. Small businesses should focus on proactive health measures that encourage employees to stay on top of their well-being. Some tips include:
- On-site health screenings: Hosting annual wellness check-ups, flu shots, and biometric screenings can help detect health issues early.
- Fitness and wellness perks: Offering gym memberships, fitness stipends, or wellness challenges encourages an active lifestyle.
- Nutritional programs: Providing access to registered dietitians or healthy eating initiatives can help employees make better dietary choices.
By promoting preventive care, businesses can reduce sick days, enhance employee engagement, and foster a culture of health.
4. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
Financial tools like HSAs and FSAs empower employees to manage their healthcare expenses effectively. These tax-advantaged accounts help employees save for medical costs while reducing taxable income, including:
- HSAs: Employees can set aside pre-tax dollars for medical expenses, and funds roll over year after year for high-deductible health plans.
- FSAs: Employees can use these pre-tax funds for medical, dental, and vision expenses, although funds must be used within the plan year.
- Employer contributions: Even small contributions to employee accounts can provide significant value and encourage participation.
By offering HSAs and FSAs, small businesses give employees the flexibility to manage healthcare costs while maximizing tax benefits.
5. On-site and virtual healthcare services
Convenience is key when it comes to healthcare access. Small businesses that invest in on-site or virtual healthcare services make it easier for employees to receive medical care without disrupting their work schedules. A few options you may offer include:
- On-site therapy and wellness sessions: Bringing in professionals for counseling, massage therapy, or mindfulness workshops supports holistic health.
- Telehealth and virtual care options: Employees can access medical professionals from anywhere, reducing the need for time-consuming in-person visits.
- Occupational health services: For businesses in physical industries, offering ergonomic assessments and physical therapy can prevent workplace injuries.
Providing direct access to healthcare services enhances employee well-being and minimizes absenteeism, making it a smart investment for small businesses.
Final thoughts
Investing in healthcare benefits isn’t just about offering coverage. It’s about creating a culture of well-being that attracts and retains employees. By prioritizing comprehensive group insurance, mental health resources, preventive care, financial wellness tools, and accessible healthcare services, small businesses can build a healthier and more productive workforce.
In 2025 and beyond, small businesses that proactively invest in healthcare benefits will not only see happier employees but also a stronger bottom line. Prioritizing these smart financial investments will set companies apart in a competitive labor market while fostering long-term success.