As the home furnishings industry braces for renewed economic pressure due to evolving U.S. tariff policy, small and mid-sized business owners—especially those importing goods from China and Vietnam—are watching their margins tighten. The impact is widespread, with increasing shipping, manufacturing, and wholesale prices.
According to a recent article in The Wall Street Journal, some U.S. retailers are already scaling back imports in response to tariff costs, and many are reconsidering staffing and expansion plans to offset the financial strain.
This presents a complex challenge for retailers: reducing operational costs without compromising the workforce that powers customer service, logistics, and craftsmanship.
Re-Evaluating Benefits During Financial Pressure
Employee benefits often come under scrutiny during economic uncertainty—not because they’re unimportant, but because they’re traditionally expensive and difficult to manage. However, cutting benefits can backfire, especially when labor retention is already a growing concern in the retail and service economy.
Data from the Society for Human Resource Management (SHRM) shows that employees are far more likely to stay with companies that offer strong benefit programs, even when other aspects of compensation are static.
A Shift Toward Flexible Healthcare Models
To adapt to turbulent times, many small businesses are turning to more flexible health benefits models, such as the Individual Coverage Health Reimbursement Arrangement (ICHRA). This approach allows employers to offer a defined, tax-free contribution toward employees’ individual health insurance policies—allowing employees to choose plans that work for their needs while offering employers predictable, controllable costs.
Unlike traditional group plans, ICHRAs do not require minimum participation or uniform plan designs, which makes them particularly appealing for businesses with smaller teams or varying locations. According to Decisely’s overview of ICHRA, this model also helps employers stay ACA-compliant while giving employees access to personalized coverage they can take with them—even if they change jobs.
Benefits include:
- Budget control: Employers choose what they can afford to contribute.
- Employee choice: Plans are selected based on individual or family needs.
- Portability: Coverage stays with the employee, reducing administrative burden.
- Compliance: ICHRA satisfies ACA employer mandate requirements.
The HFA Benefits Center: A Resource Built for You
To help members take advantage of this flexible approach, the Home Furnishings Association has partnered with Decisely to launch the HFA Healthcare Solutions. This platform gives members access to the tools, guidance, and support needed to implement an ICHRA or explore other modern benefit solutions tailored for the furniture industry.
Whether you’re a retailer, wholesaler, or manufacturer, the HFA Healthcare Solutions makes it easier to offer healthcare benefits that fit your budget—and support your team in meaningful ways.
Supporting Your Workforce While Navigating Headwinds
As HFA members navigate the headwinds created by tariffs and cost pressures, solutions like ICHRAs provide a meaningful way to support your team without sacrificing financial control. While tariffs may impact material costs and product pricing, benefits remain critical for maintaining morale, loyalty, and operational continuity.
Offering affordable, personalized healthcare coverage isn’t just a smart HR move—it’s a long-term investment in your people and business resilience.
