Employees are typically a business’s largest expense.
This expense encompasses not only salary but also benefits.
I used to go with my dad to car lots. It was like a sport for him to buy a new car. We would sit for hours; he would threaten to walk out (sometimes we would) until they would go back and forth to finally agree.
The insurance industry reminds me of going to the car lot with my dad.
Once a year, the insurance carriers send a letter to business owners notifying them of a whopping price increase, and for 30 days, it’s a negotiation tactic.
Let’s start off at 30% to have the owner negotiate it with their agent back down to 10%—so the business feels good about saving 20% rather than spending 10% more than last year.
Or they keep it the same price but reduce benefits for the employees. Higher deductibles, certain medical services are excluded, etc.
Way to go! You got a deal!
Not really.
