Does Group Health Insurance Make Sense for My Business?

Like most Americans today, healthcare reform is at the forefront of the minds of virtually all business owners, managers, and employees. While planning ahead is always a good move, many of the components of President Obama’s proposed legislation will not take effect until at least 2013. In the meantime, we still face the age-old question: “Does group health insurance make sense for my business?”

Obvious factors such as cost of premiums, tax benefits, and overall health of staff are common to all businesses. Instead, let’s explore the question using conditions specific to the relocation industry: injury risk, high turnover rate, and low wages.

Injury Risk

Movers are obviously subject to rigorous physical activity which can put them at higher levels of risk for injury. It might make sense to help keep employees as healthy as possible by offering medical benefits, which may also keep workman’s compensation claims to a minimum. However, many hourly laborers continue to work with known injuries to avoid missing any wages for time off tending to them.

High Turnover Rate

Most group insurance plans require a 90-day employment period before new hires become eligible. This helps avoid unnecessary paperwork and administrative costs for the employer. Unfortunately, there tends to be a high turnover rate amongst relocation professionals, so a relatively high percentage of workers never become eligible for benefits in the first place.

Low Wages

Of course some employees will inevitably stay with you for longer terms, rendering them eligible to participate in a group insurance plan. In general, employees with healthcare benefits tend to be happier with their employment and of course in better shape to perform their jobs. Although according to the U.S. Department of Health and Human Services, workers with lower wages may prefer to keep more of their paychecks over contributing to group insurance premiums. Tack on deductibles and co-pays, and suddenly healthcare coverage doesn’t look so attractive to a low-wage, hourly employee.

So, should you provide group health insurance benefits or not? We’re willing to bet that for most relocation firms, it just doesn’t make sense financially. However, we want to hear from you! Are you currently providing medical benefits? Why or why not? Share your thoughts and discuss in the comments below.

Thinking outside the Business Vertical

Recently I participated at a conference organized by a large national association operating in a market that was not immediately in our business vertical. We generated great leads which we hope will turn into a continuous flow of business.

The best outcome of this show was realizing the potential new markets outside our immediate ‘business vertical’ that need exploring. I call it ‘Thinking outside the Business Vertical’.

One could argue to concentrate on your core markets, and to some extent I agree. However, what if your core markets are over crowded by competitors? What if your core markets are saturated with similar products and you cannot generate any new sales from these markets? Can you explore new market verticals? Can you afford not to be searching for other verticals?

Is Co-opetition For Everyone?

Co-opetition - A relationship between two companies involving competition in some segments and cooperation in others

According to Wikipedia, "Coopetition or Co-opetition is a neologism coined to describe cooperative competition. Co-opetition occurs when companies work together for parts of their business where they do not believe they have competitive advantage, and where they believe they can share common costs. For instance, the cooperation between Peugeot and Toyota on shared components for a new city car for Europe in 2005. In this case, companies will save money on shared costs, while remaining fiercely competitive in other areas. FVor co-opetition to work, companies need to very clearly define where they are working together, and where they are competing."

We see Co-opetition in almost every market business segment. Google, Yahoo, Microsoft, Apple and others, compete fiercely in some areas, but cooperate very closely in others (see article).

In the van lines world we see co-opetition between agents of the same van line. But does it exsist between agents of competing van lines? Is co-opetition possible between independently owned moving companies? Self Storage companies? Mobile Storage companies?

One area we see potential co-opetition between companies is in the Mobile Storage and Packing/Loading/Unloading services, in which the mobile storage company may complete for business with the moving company, but use the movers to provide loading and unloading services to its customers.

The Gold You Find In Your Spam/Junk Folder

Our Spam and Junk folders save us from email messages that could harm our computers and servers and are also a waste of our time if we stop to read them. In most cases, messages caught by our spam filters are really unwanted and illegitimate messages.

However, no spam/junk filter is perfect and in some cases the rules also capture relevant and important messages we should be reading. Many times you will find in your junk folder a response from a prospect for whom you quoted a price, a request for a quote from a potential customer or a suggestion for a new deal from a colleague.

The only solution is to check your junk folder on a regular basis, daily or weekly, go through your messages and look for any legitimate ones and act accordingly. We know it takes valuable time and realize it is a tedious process altogether, but hey, we never said that finding gold would be a an easy task…

Can You Handle The Bad News?

If your job responsibility requires you to speak with customers from time to time, you may have come across customers who complained about your service, an employee who they didn’t like or agree with or about a promise made to them that wasn’t kept. If your company operates a blog or uses a survey, you must have read some negative comments about your company, services or employees. How do you handle these? Can you handle the bad news?

As an owner of our agency I have come across negative comments addressed by customers verbally or via our surveys or blogs. I must admit that as hard as I am trying not to take these comments personally, it always triggers the question: What did I do wrong? However, I always with no fail make sure to look into the issue and respond back to the customer personally when possible.

How are you handling these negative comments?

What is Your Survival Strategy?

Like so many industries today, the C.O.D. market has suffered greatly as a result of the recession. Service-based industries may bear far more of the brunt, as consumers look to save money with do-it-yourself solutions. Many potential customers of yours are now considering mobile self-storage or rental trucks instead of enlisting your services.

There are success stories to be heard though. Some agents have taken steps to become government contractors for military and other federal moves. Others have added new services, such as offering the very mobile self-storage solutions that previously threatened their business.

What are you doing to combat this shift in consumer trends? Share your success and learning experiences in the comments below.

Five ways to take the stress out of moving

While moving to a new home can be an exciting time, it's no secret that relocating can also be a very stressful life event.

Here are five ways to make your move as stress-free as possible.

1. Move highly sentimental items and small items of extreme value yourself. It can relieve a huge amount of stress to know that these items are safe and sound at all times. Family heirlooms and unique artwork are good examples of items to move yourself. Basically, if it's irreplaceable and it fits in your car, move it yourself. For larger items such as art collections or grand pianos, hire specialty movers.
   



2. Choose movers whom you are comfortable with. Do your due diligence on moving companies before hiring one. Always get multiple quotes and base your decision not only on the estimate, but also on the level of professionalism the company presents. Ask for referrals, and try and talk with people who have used the company before. On move day, get to know the crew members, and maybe offer them a cold drink. Getting on the movers' good side will ensure that they take extra special care of your things, thus relieving a ton of stress on your end.
   



3. Ask questions. Wondering how the movers are going to protect that flat-screen T.V.? Just ask! So much of our stress comes from the unknown. If you're concerned about how specific items will be handled, your crew's leader would be happy to explain the process.
   



4. Let the pros do the packing. Are you worried that you just won't have the time to pack up all your things before moving day? For many, a great deal of stress can be relieved by knowing a professional team will have all the packing done on time. This kind of relief can be worth the extra cost
   



5. Insure your move! Remember, your movers are human and accidents can happen. Movers typically offer minimum liability coverage (often $0.30 or $0.60 per pound) which still leaves you at a loss in the case of an unfortunate accident. Choosing a third-party insurer for full coverage is a good way to achieve full peace-of-mind. Read more reasons why moving insurance is a must.