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How providing Healthcare Benefits can help retention and improve performance

By March 3, 2022April 13th, 2022No Comments

There are many studies that show that employees are more likely to remain in a company if they are convinced with the healthcare benefits. Providing a series of healthcare benefits is among the most effective strategies, especially for a small business to add more value to its long-term plan and objectives.

Choosing the insurer is one of the keys

As the owner of a small business, you should focus on choosing an insurer that has goodwill in the Indian market. Check out the online reviews of the insurance company before you decide its policy.

An insurance broker can provide you more options

There is more flexibility in getting a hold of a top insurance broker. There is more flexibility in digging through the choices that the broker offers. There is usually no shortage of options as far as health insurance policies for small businesses are concerned.

Advantages of providing healthcare benefits

There are some distinct advantages of providing healthcare benefits including the ones mentioned in the title. They are:

  • A marked improvement in the hiring process attracting better talent
  • Considerably lower premium payment when it is a group health insurance 
  • Tax incentives for businesses 
  • Improved employee loyalty
  • Better retention rate
  • A higher level of job satisfaction
  • Improved productivity
  • Establishing a healthy corporate culture 

How employees view health insurance – a small yet important fact

In a survey only a few years back, it was found that a whopping 92% of employees enthusiastically look forward to the health insurance plans facilitated by their employers.

How have HR strategies changed?

The series of benefits that small businesses and even big businesses receive by providing healthcare insurance to their employees have compelled the HR strategies to evolve and become more streamlined. In 2017, 44% of companies had no specific HR strategy in providing healthcare insurance to employees. It reduce in 2020, and became 28%. 

Check out the benefits

The policy document of the insurance policy clearly mentions the specific benefits covered by the plan. Go through the features, clauses and sub-clauses. Do not skip any of the points of the insurance policy document. There is no need to rush through the document.

Discuss with experts about the utility of the policy

You can discuss the various aspects of the policy you consider for your employees with experienced professionals who have good ideas regarding the dynamics of health insurance. They can provide you good insights that help you to understand the applicability of the policy in a clearer manner.

Keep a note on the exclusions

It is essential to keep in mind the exclusions mentioned in the document of the insurance policy. Exclusions mean the cases in which the health insurance benefits are not implemented as the policy is not applicable.

Retaining the employees

When you, as an entrepreneur or owner of a small business provide full-proof health insurance benefits to your employees, it becomes easier to retain them. You do not have to put further efforts or invest in some other facilities to improve the retention rate, in most of the cases.

The employees remain loyal

It has been observed by many industry experts that the employees remain loyal to a company that provides it a good range of health benefits. They do not think about switching jobs. The employees prefer to remain in the same company for several years. 

Good employee retention rates means more stability

There is no doubt that a small business having a high employee retention rate has more chances of establishing itself in the long run. It improves the probability for the company to expand its business and strengthen its prospects, even in a highly competitive environment. 

The productivity increases

A small business will also improve a remarkable improvement in the productivity of its employees. The employees have lesser worries about getting benefits from the insurance as they are confident the company has made the necessary arrangements. They focus more on delivering good work.

Full contribution by the employer is more effective 

When the premium amount of the health insurance policy is fully paid by the employer, the strategy is said to be more effective in retaining the employees and improving the level of efficiency. The employees feel relaxed and secured for the small business.

Partial contribution by the employer is effective, too

Even when the contribution is divided between the employer and its employees, the effect is not something to be overlooked. The impact is positive, from a practical point of view. The employees find it quite advantageous to work for the company, in this case, too.

A better job satisfaction

Providing health insurance to employees work wonderfully in improving the job satisfaction level of the employees. They complain less about the job. They are more convinced about the good standard of the job. In the long run, such things benefit the small business to grow.

Knowing what the employees want

It is useful to survey the employees to know their demands and specific requirements, as far as health insurance benefits are concerned. The information helps in selecting the most suitable insurance provider and the right policy. There is no confusion in making a decision.

Developing employee-employee bonding

It has also been observed that an insurance product such as group health insurance is quite effective in strengthening employee-employee bonding. It has a direct positive impact on the productivity of the team. The benefit ultimately accrues to the company that provides such benefits to its employees.

Insurers work on value-based designs of products

A good, professional insurer evolves its strategies to create value-based designs for its insurance products. Such policies take into account the elements that make the customers happier. Accordingly, the customer choose the policy, based on the evolved features and related characteristics.

Improved employee retention also means sustainability

There is a good link between high employee retention rate and sustainable revenue flows. When a small business is able to retain top talent, especially when it is a tech start-up, the company can be more confident about ensuring a sustainable flow of revenues. 

Improved performance means more competitiveness

There is no doubt that when you want to make your small business more competitive, you need to considerably improve the performance of the employees. One of the effective ways is, as discussed in this blog, providing good health insurance to them, securing a safety net.

Thoroughly read the policy document

It is extremely important to thoroughly read the policy document of the insurance plan before you decide to purchase it for your employees. There are usually many terms and conditions that you need to take into account. The details help you to understand the overall applicability of the insurance policy in a detailed manner.

Take suggestions from experts

It is recommended to talk to the experts when you intend to buy the policy. You can consider PlanCover professionals who can provide you with the right information about the effectiveness of different insurance products and their suitability for the employees of your company. It becomes simpler for you to make a final decision on this matter. 

Reference:

https://economictimes.indiatimes.com/jobs/92-per-cent-employees-look-up-to-employer-facilitated-insurance-plans-survey/articleshow/57149527.cms
https://timesofindia.indiatimes.com/business/india-business/cos-flaunt-health-plans-to-attract-retain-talent/articleshow/82890878.cms

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