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In a 2002 survey*, a majority of small business owners reported several positive effects of offering health insurance for their employees:

• 78 percent said it increased loyalty and decreased turnover.
• 75 percent said it helped employee recruitment.
• 64 percent said it increased productivity by keeping employees healthy.
• 62 percent said that employees demanded or expected health insurance.
• 58 percent said it reduced absenteeism by keeping employees healthy.

On the flip side, only 25 percent of employers who did not offer health benefits responded that they thought not offering health insurance had no impact on their business.

*Source: the Employee Benefit Research Institute (EBRI), and the Consumer Health Education Council (CHEC).