With an estimated 44 million workers uninsured nationwide and legislation pending in 31 states to mandate health insurance for all workers, restaurant operators who can figure out now how to offer health benefits to their employees will be ahead of the game, said Tim Mayfield, human resource director for CMAC, a Myrtle Beach, S.C.-based franchisee of Logan’s Roadhouse Inc. CMAC operates 19 units in North Carolina, South Carolina and Augusta, Ga., for the Nashville, Tenn.-based casual steakhouse chain. CMAC offers medical and dental coverage to its 1,500 employees, many of whom work part time, Mayfield said. The key was finding a limited-benefit health care program that employees could afford, he noted. Since CMAC began working with EssentialCare, a program managed by Planned Administration Inc. in Columbia, S.C., and underwritten by BCS Insurance Co. in Oak Brook Terrace, Ill., employee retention has improved, Mayfield said.
How has offering health benefits affected employee turnover?
If [employees] are on a program, they are more apt to stay with you. In this business, a lot of employees come and go. This can help hold them here. Rather than make a quick decision to leave, they choose to stay.
How many employees are enrolled in the program?
Around 15 percent of our employees. We’d love to get to 20 percent. A lot of the kids are college kids, still living at home and covered under their parents’ insurance.
How much does it cost the employees and what do they get?
It’s usually about two hours of pay per week. They can sign up for medical, dental, vision, life, short-term disability and hospital [coverage].
Why is limited coverage a good option for a restaurant?
It’s not a major investment for a company. We’re small, and we spend very little time on it. It’s easy to maintain. You don’t have to hire someone to manage it.
From a company standpoint, it’s a great way to do something for your employees from a moral and ethical point of view, and obviously it helps with retention and recruiting. And if any of that [health care] legislation should pass, people will be scrambling to try and get some coverage and make the best decision. If you already have something in place, you can enhance it further.
