Reasons Why Health Benefits Are Necessary For Employees

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Healthcare benefits play a huge role in an employee’s benefits package, which is why almost 98% of large-scale employers offer insurance to their workers. However, since health insurance does not come cheap, many small to mid-sized businesses are less likely to offer it. Many businesses still may not realize the importance of healthcare benefits, yet they highly contribute to overall employee satisfaction and retention, as shown in recent surveys.

According to a study conducted by an insurance company called MetLife, over three-quarters of workers who are receiving excellent healthcare benefits are highly satisfied with their jobs. Meanwhile, 71% of the said employees have shown loyalty to their company.

Regardless of the costs incurred, here are eight good reasons why healthcare benefits should be provided for every employee:

1. It attracts future employees.

The job market is a fiercely competitive field, and businesses constantly try their best to snag the best new hires out there. With today’s skyrocketing costs of healthcare, a lot of job hunters are easily attracted to a great employee benefits package, which includes an efficient health insurance. If you want qualified employees to flock at your job opening, consider offering benefits for healthcare.

2. It retains employees.

The battle does not end with successfully attracting qualified employees. Once they are hired, an employer should make sure to retain them on his or her company for a long time. Health benefits will do exactly that. A recent survey showed that over 90% of employees with health insurance would be willing to seek other employment options if they ever lose their healthcare benefits. And with a sea of promising employers offering health coverage to new hire, it would be so easy to lose to competition.

3. It is a way to reduce operating costs.

As an employer, offering health insurance benefits can effectively keep operating costs low, as employees are more likely to accept a position at a lower salary in compensation to the benefits offered. Furthermore, it will be more costly for an individual to get a personal or family health insurance plan than to take advantage of an employer-sponsored coverage. This makes a lower salary a fairly negotiable deal.

4. It boosts morale and productivity.

Aside from retaining your employees, knowing that they are secured with health benefits also improves the team’s morale and productivity. Providing a health insurance policy will let them know how much you value them, keeping them happy and be loyal workers for your company.

5. Insurance costs are much cheaper for businesses.

An advantage for businesses is that they are given better and cheaper rates for healthcare or insurance than the individual plans. This means that the more members there are in a group health insurance package, the lower the healthcare costs for everyone. With this in mind, it is indeed an advantage for business owners to provide healthcare coverage to employees with the lowered cost.

6. You can avail of tax advantages.

Many businesses that offer health benefits are able to deduct their part of the contribution to the employee benefits plan as a business expense to avail of a tax advantage. If a company is incorporated, the employer’s insurance, as well as the health coverage meant for the employees, will be deductible.

7. Health insurance is simple.

Another viable reason to consider as to why some business owners avoid health benefits altogether, aside from financial concerns, is due to management issues. The truth is that health benefits are easy to understand, and finding an affordable yet sufficient health monitoring accessory is a lot easier than they think. There are available healthcare management programs from insurance companies that can set up information on health benefits and help employers to maintain these information. With the right insurance company, getting a health benefits package for the entire workforce will only be a breeze.

8. It keeps the workforce healthy.

Of course, keeping employees healthy is the main purpose for healthcare benefits — plain and simple. And with good health in workers also comes good productivity. When workers are offered health insurance, sick leaves may be be reduced and work will continue to flow. According to an Australian-based study, healthy employees turn out to be thrice more productive than workers in poor health. With great health, everything else follows.

There’s no stressing enough how health benefits can be of an advantage to both individual workers and the company as a whole. Your employees deserve the best financial security from your company when they chose to apply for a job. As an employer, it is your responsibility to take care of your employees. In doing so, you are also effectively taking care of the company you’re running.