Offering benefits to your employees at this stage of your growth can be a significant cost to your business. If you’re absolutely certain of the reasons you need a group plan – the fact that it gives your business a competitive edge in attracting and retaining the best employees, it adds value to your compensation package, and you will spend less time dealing with absenteeism – then you will need to create a budget for it.
It is always a good idea to start with a basic benefits package (health, dental, life insurance, accidental death and dismemberment benefits) and a premium that your business can afford. I will even go further by recommending a “traditional benefits plan” initially if your employee group is less than forty-nine lives and lack claims experience. What a traditional benefits plan lacks in flexibility it makes up in stable monthly premiums. You can always add a health spending account later to enhance your benefits offering.