The restaurant industry is one of the most rapidly growing industries in the United States. In 2015, sales reached almost $746 Billion. Forecasts suggest that by 2026, the total number of people employed in the industry will rise to 16 million people.
The increasing number of employees has bought several challenges for restaurant owners, who are expected to streamline employee benefits in compliance with industry regulations and business culture.
Here is everything you need to know about employee benefits in the restaurant industry:
The Trend of Benefits in Current Restaurant Industry
Majority of businesses in the US offer a diverse set of benefits to their employees, the most common amongst which is health insurance. However, health benefits remain to be scarcely offered to employees in the restaurant industry.
Many people tend to work for restaurants on a part-time basis. The unconventional nature of these employee contracts give rise to confusions regarding the extent of benefits coverage. When it comes to small to mid-sized cafes and eateries, a majority of owners cannot afford to offer benefits like wellness programs and medical visits.
Additionally, since turnover rates in the restaurant industry are very high and planning benefits requires a certain “permanence” on the employees’ part, and health insurance plans do not become effective immediately, most restaurant owner choose to skip benefits administration.
It can take up to ninety days before the health insurance plans take effect. Often, employees do not stay with the establishment for more than a few weeks. This can result in a loss of time and money for restaurant owners who have already invested in insurance.
The costs of underwriting and administration of the coverage may result in an increase in the premiums that owners have to pay to the insurance company. This may not be financially feasible, especially in the case of small restaurants.
Healthcare Benefits and Supporting Authorities
National Restaurant Association offers support to the food service industry, providing relief to restaurant owners when it comes to the costs associated with employee benefits like health care.
The organization has also joined hands with the United Health Group Inc. to form the Restaurant Health Care Alliance. The aim of the collaboration is to make health care more accessible to people who are employed in the restaurant industry.
Planning Benefits for Restaurant Employees
While some restaurants do offer dental and medical insurance to their employees, a large percentage has yet to get on board with the practice. Advantages resulting from offering employee benefits include higher employee retention rates. Employees working in restaurants with attention-to-detail regarding health and other benefits are likely to stay on staff for years.
Reach out to JS Benefits Group . As one of the leading employee benefits professionals located in Pennsylvania, we are dedicated to streamlining custom benefits plans for restaurants.
Contact us today at 877-355-6070.