The Real Cost of Not Offering Employee Benefits
“It’s not that benefits are too expensive. It’s that not offering them is way more expensive, just in ways you don’t track on a spreadsheet.”
— JAM Benefits
Let’s be real: If you’re a small or midsize business, you’ve probably said it (or at least thought it):
“We just can’t afford to offer benefits right now.”
And hey, we get it. When you're watching every dollar, the idea of health insurance premiums or retirement contributions might feel like a luxury.
But here’s the truth no one’s telling you:
Not offering benefits is costing you a lot more than you think.
And the worst part? Most of those costs are hidden - baked into hiring struggles, turnover, lost productivity, and flat-out missed opportunities.
Let’s break it down ⬇️
You're Losing Top Talent Before You Even Talk to Them 🏃🏼💨
Good candidates aren’t even applying. Why? Because your job posting doesn’t mention health insurance, and your competitors’ do.
“I can’t afford to accept a job without benefits.”
— Every talented employee in 2025
In a tight labor market, benefits are a signal. They say: We’re legit. We invest in our people. We care.
No benefits? It screams the opposite.
And we promise—salary alone won’t save you. Candidates might be interested… until they do the math on what buying their own health plan will cost.
📊 In fact, 72% of U.S. employees say they’d take a lower salary in exchange for better health benefits
— Voya Financial, 2024
That means you’re not just missing out on talent, you’re competing with companies offering less pay but more value.
Turnover Is Quietly Draining Your BUSINESS 🔁
You might think you’re saving money by skipping benefits, but you’re probably spending it anyway, just through the back door.
Every time someone leaves, you lose:
Institutional knowledge
Team momentum
Client relationships
2–3x their salary in replacement and ramp-up costs
Most employees won’t say “I’m quitting because you don’t offer benefits”, but it’s often the reason they’re even looking.
Especially once they get married. Or have a kid. Or hit 30 and start thinking about health in a real way.
You're Spending Time Managing Chaos Instead of Growing the BUSINESS 🌀
Without a real benefits strategy, here’s what happens:
Team members ask for random raises to cover medical expenses
You lose days trying to compare coverage plans in a confusing marketplace
HR becomes the department of “Google it and hope it’s right.”
And when your team has no support? They bring their stress to work. And that stress hits your bottom line.
“When people are stressed about healthcare, they don’t perform at 100%. They can’t. And pretending otherwise is just bad management.”
— JAM Benefits
You're Missing Out on Tax Savings 💰
Yes, you read that right. The government wants you to offer benefits. That’s why there are tax advantages for doing it.
Section 125 plans (cafeteria plans) let employees pay premiums pre-tax, reducing your payroll tax liability.
ICHRA plans can be tax-deductible for your business and more flexible than group health insurance.
No benefits? No tax breaks.
You’re literally paying more to do less.
You’re Delaying Growth 🐌
Growth demands more—more capability, more experience, more initiative.
And the people who bring that? They expect better benefits.
That’s not corporate fluff, it’s just reality.
If you want to build a company people are proud to work for (and stay at), you need to start thinking about benefits as an investment in growth, not an expense to avoid.
So… What’s the Fix? 🔧
You don’t need a six-figure benefits budget.
You don’t need a bloated broker with golf club memberships and a fax machine.
You need a smarter way to do this.
That’s where we come in.
We’re JAM Benefits - an unapologetically modern, tech-powered agency built for businesses like yours. We help you:
Design a benefits strategy that actually fits your budget
Learn about low-cost options like level-funding, ICHRA, MEC, and voluntary benefits
Launch with zero headaches and no HR jargon
Give your team the benefits they’ve been hoping for
“You don’t need to be Google to offer great benefits. You just need a partner who gives a damn.”
— JAM Benefits
Ready to Talk?
If you’re tired of losing people, missing out on growth, or just wondering what benefits could look like for your business, let’s have a conversation.
No pressure. No suits. No outdated pitch decks. Just honest advice and modern solutions.
Let’s fix this!
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