Case Study: Zoop Benefits Implementation at Hair Salon

Before Zoop Benefits

• Limited Benefits Access: A large portion of the hair salon's 78 employees were ineligible for traditional health insurance due to part-time status.

• High Cost of Benefits: The available health insurance was too expensive for many employees, leading to low participation.

• Employee Turnover Risk: The lack of affordable benefits was causing key employees to consider leaving, impacting salon operations.

• Limited Recruitment Appeal: Difficulty attracting and retaining top talent due to lackluster benefits package.

"Being able to get this plan saved my job...I was looking for another job with benefits for my kids and thought I'd have to quit working someplace I loved!" - 11 year Veteran Stylist

Enrolled in Zoop Benefits

• Zoop Benefits Rollout: The salon implemented Zoop Benefits, a more accessible and affordable solution.

• Widespread Eligibility: 21 employees were eligible, and all eligible employees enrolled in the program (100% participation).

• Comprehensive Coverage: The plan provided comprehensive coverage with no copays or deductibles, addressing employees' primary concern.

• Life Insurance Benefit: Employees gained an average of $2,000 per year deposited into guaranteed issue whole life insurance policies.

• Employer Incentives: The salon received financial incentives for offering Zoop Benefits and reduced their traditional health insurance utilization.

• reinvestment in the business: The owner used the extra $7,000 savings to create a matching tax-free pension plan for location managers, fostering loyalty and long-term commitment.

100% Eligible Employee Participation

After Zoop Benefits

• Improved Employee Retention: The key employee who was considering leaving due to lack of benefits was able to stay, and her commitment to the salon increased.

• Enhanced Recruitment: The salon now offers attractive benefits from day one, improving their ability to attract top talent.

• Increased Employee Satisfaction: Employees are happier with their comprehensive and affordable benefits package.

• Improved Financial Stability: The salon saved money on healthcare costs and gained additional revenue through Zoop incentives.

• Long-Term Management Retention: The new pension plan incentivizes location managers to stay with the company longer, promoting stability and leadership.

• Positive Brand Image: The salon's commitment to employee well-being enhances its reputation and attracts more customers.

Conclusion

Overall, the implementation of Zoop Benefits at the hair salon proved to be a win-win situation. Employees gained access to affordable and comprehensive benefits, the salon improved its financial stability and employee retention, and both the business and its employees are poised for long-term success.

$7,000 Savings Invested in Tax Free Pension for key Managers @ zero cost to the owner.