Need to Know: Startup Companies and Benefits

Weingast_startupEmployees of startup companies probably consider themselves pretty lucky. According to an article in Forbes startup employees benefit from the “startup culture,” which breeds collaboration as well as from a sense of ownership and visibility that comes from being with a company since its inception. For many startup employees, these factors alone are enough to keep them engaged and on board with the company for years to come.

But if you are at the head of a startup company, you may want to consider the impact of offering a formal benefits program to your employees.  A recent article in Entrepreneur reports that  “MetLife’s annual study of employee benefits trends found that benefits can be even more important than advancement opportunities and company culture in fostering employee loyalty.” This is a key factor to keep in mind, particularly when considering the time, money, and energy it takes to recruit and retain talented staff. In addition to keeping your staff happy, offering formal benefits may also be a way to distinguish you from competitors when you’re recruiting new staff, since “only 28 percent of businesses with fewer than 10 employees offer health insurance.”

Here are some important tips to keep in mind if you are thinking of establishing a formal benefits program for your startup company:

1)    Start with the basics, such as health insurance and disability insurance. Save the fancier perks for later, when you have established your company on solid financial ground.

2)    Manage expectations, for yourself and for your team. Offering any kind of formal benefits at all puts you in a better position than most small companies; asking for employee contributions is not only reasonable but will likely be necessary. And, avoid cutting back benefits at all costs.

3)    Take advantage of health-insurance subsidies, which are now available under the Affordable Care Act.

4)    Get a broker. You’re busy trying to make your business a success. Once you know the basics of what benefits you want to offer your employees, leave the details and logistics to a broker who knows the in’s and out’s of benefits planning. The best part? There’s no extra charge for using a broker.

Read the full article here.

Whether you’re an entrepreneur who wants to attract and retain the best staff as you build and grow a successful business or a leader at an established company that wants to gain a recruiting edge, the Robin Weingast team can help you establish and analyze your employee benefits. Contact us today for a free consultation or a free analysis of your current plan. Our business is to make sure your benefits are working….for you.

What’s your long-term plan?

Robin Weingast piggy bank ImageA recent Daily News article by Phyllis Furman reported on the shockingly high annual cost of private nursing home rooms in New York City. According to Genworth’s annual Cost of Care Survey, here’s what you can expect for a private nursing home room:

  • A room in Manhattan costs $180,000 per year
  • A room in Queens costs $160,000 per year
  • A room on Long Island costs $140,000 per year


When you compare this to the national median cost of $84,000 per year, NYC can be a pricey place to spend your golden years. Only San Francisco is more expensive.

These prices are compounded by the fact that the average nursing home stay is 2.5 years, and, according to Genworth, prices rise approximately 5% each year.

What’s contributing to these outrageous costs? According to Genworth, it’s property costs, staff, insurance, and maintenance.

When considering a home health aide, NYC is closer in line to the national median rate of $19/hour. NYC residents pay a median rate of $22/hour. This has become a popular option for NYC residents, and seven out of ten of Genworth’s first-time clients choose this option.

It’s important to note that Medicare generally won’t pay for nursing home stays or home care. Medicaid offers some funding potentials, but you will need to familiarize yourself with their eligibility requirements. Another option is to purchase a long-term care policy.

The other factor at play is that the cost of a long-term care policy today runs almost 30% to 50% more than it did just three to five years ago.

According to the American Association for Long-Term Care Insurance, a 60-year-old couple should expect to pay about $2,000 a year for $162,000 coverage for each spouse.

The team of experts at Robin S. Weingast and Associates can help you with all of your long-term care policy needs. We are here to answer questions and to help you put a plan in place that will make sure you and your loved ones are prepared for whatever long-term care situation they require. Contact us today for a free consultation and to discuss how to create a long-term care plan.