I say this to clients all the time because it’s one of the biggest ways we lose out on strong candidates.

If you don’t offer health insurance, you’re shrinking your candidate pool by about 75%.

As a result, your job posting needs to be sponsored longer (increased ad spend), and the search time can double.

Here’s what actually happens.

People covered by a spouse
This is your best group, and it’s limited. But they still have options, including jobs that offer health insurance. So you’re competing at a disadvantage right out of the gate. And spouse coverage isn’t free, most still have to pay into it.

People willing to buy their own insurance
This group is smaller than you think. Most candidates see this as complicated and expensive, even if that’s not always true. They skip the job before they even consider it.

People willing to go without
This is usually a smaller and less predictable group, which can make it harder to build a stable, long-term team.

Good candidates have options. They are not going to take a step backward on something as important as health insurance. So they don’t apply. They never even enter the funnel.

I also hear, “Can’t we just pay more instead?” In theory, yes. In reality, it doesn’t work that way.

This isn’t just a math problem. It becomes a trust issue. Without health insurance, some candidates assume the company may not be as stable. And remember, they haven’t met you yet. They’re just reading your job posting.

You can absolutely hire without offering health insurance, but you need to understand the tradeoff. Some companies offer a health insurance stipend through payroll, which can help, but it’s not a complete solution and isn’t allowed in every state.

Without insurance you could get lucky, but you might not be choosing from the best candidates.