Want to provide healthcare for your hospitality team? Here are the options.
By Jacqueline Raposo for Plate Magazine.
Image: A staff member of The Salty Donut.
Only 32 percent of employers in the leisure and hospitality sectors offered their staff health benefits in 2022—a 4 percent drop from 2019. Yes, pandemic recovery continues to eat up operating costs. But many new, affordable, and accessible health insurance options exist. Even if your team size or state doesn’t require your business to offer insurance, doing so can protect your staff and enrich your company culture.
To help you navigate the overwhelming process, we spoke to owners and organizers about options they’ve seen work best. What benefits will staff utilize? What budget considerations should you take into account? Before we jump into the options, here are a few points to consider:
Ask your employees what they want
Young staff, those without citizenship, and industry veterans who’ve never been offered health insurance won’t jump to spend a portion of their salary on insurance—especially if the costs are prohibitive. “Survey your employees. See whether or not it’s something they would participate in,” says Allison Peterson, human resources director for The Salty Donut. Knowing what your staff wants will help you negotiate packages they’ll use. Then work with a broker with some hospitality knowledge to find the best of many options for your company.
Consider your budget
Peterson points out that operators often overestimate potential costs. When budgeting, she suggests factoring in maximum exposure of 40 to 45 percent participation. “Chances are, you’re going to be at 30 to 35 percent,” she says.
High Street Hospitality restaurateur Ellen Yin worked in the healthcare sector before switching to food and beverage and prioritized cost-sharing healthcare benefits in her opening budgets. Even though offerings include a $9 catastrophe plan, less than half of her staff is enrolled. Chef/Owner Sophina Uong of Mister Mao in New Orleans has about 30 percent of staff enrolled in traditional health insurance plans. The restaurant adds a 3 percent charge to guest tabs to cover about half the costs. “That helps at the end of the day,” she says.
Educate your staff
Digitized onboarding programs make it easy for staff to learn about insurance offerings. Personal interaction encourages even more enrollment. In-person orientations, staff newsletters, and monthly meetings are excellent places to review offerings and answer questions.
