Benefits such s h a health nsurance carry a set cost per enrolled employee that can vary based on the chosen cov- erage and


i d company’s contribution. The


cost for oth r be benefits, such as retire- ment savings plans, can vary widely. Family Flowers offers a 401(k) plan and matches up to 4% off employee contribu- tions. The company’s cost per employee depends on the employee’s salary and contributio ln levels, in addition to the retirement plan costs.


The cost off so e bm benefits can


change over time. Health insurance premiums f, for example, rise annually by 7% on average. Employers should anticipate increasing benef s costs and plan accordingly. We try to budget for increase n bs i benefits each ear, meaning we must continue to maintain strong proffitabillity and


it y d growth h t at offsets the potential increases in cost. Manage and Reduce Co e Costs


Benefits are an investment in our people, and our team is the greatest asset we have. However, owners must carefully review direct and


d indirect costs before


making a y dn decision that could affect their bottom lil ne.


mitment and


Adding benefits is a long-term com- d once offere , ed mployees


expect the be e ts to e r m ia n available through the length of their employment. Removing benefits can create ill will among employees, leading to decreased performance, resignations, and a nega- tive reputation as a community employer. While these long-term investments


e b n fi


might seem overwhelming, there are various strategies business owners can use to help mitigate the added cost of providing benefits. Work with a broker. Regardless of


your shop size, consider a reputable insurance broker who will work hard on your behalf to get you the best benefits at competitive rates. Brokers can do the legwork of finding and comparing plans based on individual business needs. Bundle benefits. Insurance com-


panies often offer reduced rates if employers provide multiple cover- ages, such as health, dental, and vision. Other add-ons that can provide savings when grouped together include Flexible Spending Accounts and Health Reimbursement Arrangements (HRAs).


Consider SHOP insurance. If you


have 50 or fewer full-time equivalent employees, you may qualify for the Small Business Health Options Program (SHOP). SHOP plans are facilitated by the federal government but provided through private insurers, and can offer lower pre- miums for small business owners. Utilize tax credits. Employers who


offer SHOP coverage may qualify for the Small Business Health Care Tax Credit. To qualify, employers must have 25 or fewer full-time equivalent employees and pay at least 50% of their premiums (among other requirements). The tax credit scales depending on business size, with the smallest receiving the largest credits. Deduct if you can. Some benefits,


in part or whole, are tax-deductible. For example, employers can usually deduct matching 401(k) contributions. Other benefits that may be deducted include HRAs, life insurance, and accidental death and dismemberment insurance. Work with your accountant or tax representa- tive to see how you can lower your tax. Set manageable contributions.


If you want to offer benefits but your profit doesn’t support the full cost, con- sider offering optional plans where the employee pays most of the premiums. If needed, a company can adjust their con- tribution structures and gradually shift premium increases to staff. Negotiate annually. Employers


can talk with their insurer every year or shop for new plans to ensure they’re providing the least-expensive, most-ben- eficial options. Larger companies have more negotiating power, but even small employers can request plan changes and discounts. We always request lower rates when provided with a quote for coverage in the hopes we can get better rates simply by asking for them.


Hidden Value While you may be able to estimate the direct cost of providing benefits for your staff, it’s impossible to quantify how it improves your ability to attract and keep employees, and you also can’t measure the peace of mind, appreciation or the well-being of your team. But those are some of the very real benefits of providing insurance, retirement plans and more. Since Family Flowers began offer- ing benefits about eight years ago,


we’ve heard from numerous employees expressing their gratitude, especially when new benefits are added. Most recently, we began offering a low-cost pet insurance, much to the delight of our pet-loving staff. And a few months ago, a team member reached out to express their gratitude that the company had good insurance in place that helped them through an unexpected medical emergency. Here are some benefits I’ve seen that


are easy to miss if you’re only looking at your financial statement. Benefits can: Attract talent. Offering benefits


helps businesses remain competitive. Florists, for example, compete not just with other flower shops, but with all other employers, including big box stores that routinely offer benefits. If health insurance or retirement accounts are critical to potential applicants, they will overlook positive vibes and work culture in favor of a less-fulfilling job that pro- vides their desired benefits. Reduce turnover. Employees with


benefits feel appreciated, which encour- ages company loyalty. When companies lose skilled workers, they incur addi- tional expenses through recruitment marketing, hiring and training. Increase productivity. Employees


who feel valued are more likely to perform better at their jobs. They com- plete more work in the same workday than employees who feel undervalued. With increased productivity, employers may be able to reduce labor costs by reducing staff or hours. Improve customer service and prof-


itability. In the floral industry, front-facing staff are integral to a shop’s profitability. When employees feel valued, they are more likely to provide better customer service, prompting customers to return the next time they need flowers. Lower absenteeism. Employees


with health insurance are more likely to receive routine preventative care, leading to lower rates of more serious illnesses or conditions. They are also more likely to seek medical care if they become sick, providing for shorter recovery times.


Kevin McCarthy is a fourth-generation florist and the president of Family Flowers, which has more than 30 locations across 10 states.


The magazine of the Society of American Florists (SAF) 37


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