According to a new study conducted by research firm Truven Health Analytics, eliminating employees’ health benefits may put businesses at a significant disadvantage with regards to their ability to recruit and retain talented professionals.
Under the terms of the 2010 Patient Protection and Affordable Care Act (PPACA), businesses with over 50 employees that do not offer health insurance plans to their staff will be required to pay fees that will be used to support public health insurance exchanges. However, the Truven study asserts that employers’ calculations must account for more than simply balancing current healthcare costs against the nominal penalties established by PPACA.
The study states that “employers must provide market value – in benefits and compensation – to retain skilled workers.” It goes on to explain that employers will find it difficult to unilaterally eliminate benefits, due to the need to offer compensation packages that will be attractive to leading professionals.
Dr. Raymond Fabius, chief medical officer at Truven, asserts that “Not only is eliminating group health coverage not cost efficient, it would have an enormous negative impact on an employer’s competitive market position.”
Recruiting and retaining high-performing executives and financial professionals may turn out to be especially difficult for firms that eliminate health benefits, as the most talented individuals may be accustomed to a compensation system that includes comprehensive health coverage.
Working with professional recruiters can help companies identify and address obstacles in their recruitment process and position themselves to experience greater success during an executive or financial professional search.