Since health coverage is expensive in most countries, it is one of the most sought after benefits that employees look for when applying for jobs. Health benefits are considered premium incentives that not all companies are willing to provide due to its high premium cost. Since there is no official law stating the need of providing health insurance to employees, many companies offer it as an added perk or a side benefit. However, with rising competition and awareness, the provision of health benefits and related perks is becoming more and more common.
The companies that do not provide health benefits often claim to have a tight budget and expect to save money. However, by doing this, they are neglecting a lot of factors that can collectively lead to the company’s downfall. Many of these intangible aspects include employee productivity, satisfaction, credibility, tax benefits, and financial gains in the long run. Even if you own a small business that runs on a tight budget, you must adjust it to accommodate payments made for health insurance premiums.
Here are a few more reasons why you, as an employer, must provide health insurance to your employees –
1. Enhanced Productivity
The mental satisfaction of having a backup when things go south keeps employees satisfied and relaxed, which, in turn, enhances productivity. Those who are not provided with health insurance may suffer from stress and anxiety, which shifts their focus and affects their work. Ultimately, it affects your company’s targets and goals.
2. Build your Company’s Credibility
Providing health insurance is a matter of pride, primarily because of its high premium costs. Most employees fear long medical bills and the inability to afford them, especially when they are just starting out. You can build your company’s credibility and strengthen trust with potential business partners and professionals who aspire to work with you. In the long run, this can help you fetch significant business deals and drive your company to success.
Since most companies already provide health benefits to their employees, the absence of this benefit may also be frowned upon. Around 83.1% of American employees were provided health insurance in 2016, which is a huge figure. Companies are starting to realize its importance, which is slowly and steadily turning into a necessity instead of being viewed as a benefit. Something as simple as the provision of health insurance can decide whether your company cares for its employees or simply wants to get the work done. In today’s competitive world, the former is extremely important.
3. Healthier and Content Employees
Employees provided with health benefits are known to be happier, which directly affects their physical and mental health. Needless to say, health insurance can relieve employees of major stress. Those wanting to start their family consider health insurance to be the most crucial benefit of all. They focus on family development and often align it with their work. Receiving health insurance is also important for those who get sick quite often.
By gaining free regular checkups, your employees can take better care of their health, which results in fewer sick days and an increase in efficiency. More than 74% of employees claimed to be happier and stress-free when working. Since health coverage can be too expensive in most countries, employees despise the idea of using half of their savings behind healthcare, which is another reason why workers are content upon receiving relevant benefits. In a way, you are offering your employees a better quality of life.
4. Attract Top Talent
When evaluating prospects during job applications, experienced seekers weigh out their options based on the perks they will receive. The inclusion of a retirement plan and health insurance are two such added incentives. To attract top talent, you can offer tailored benefits to job seekers, as suggested by experts from Zenefits.com who believe in tailoring incentives based on your employees’ needs. Take professional help to craft a plan and streamline your strategies. By doing so, potential employees will apply to your firm even if they are getting a better salary margin at other companies.
In fact, the provision of health benefits and related perks is so important for employees today that they use it as a make-or-break factor when applying to companies. If you fail to provide health insurance, you may lose extremely talented professionals who could have driven the company to success. Creative professionals with a lot of valuable experience and expertise often draw this line. Along with PTO and 401K plans, which are coveted employee benefits, health perks are also rising in demand. These factors, along with a few others, are perceived during the evaluation of job prospects by seekers.
5. Job Satisfaction and Loyalty from Employees
A major part of any company’s success can be attributed to the hard work and creativity of its employees. To achieve success in a short period of time, you must ensure that your employees are happy, content, and productive. This is impossible without your cooperation. As an employer, you must ensure that your employees are satisfied with their jobs. While you cannot solve each of your employee’s problems, giving them health coverage can solve a lot of problems such as financial freedom and better health, especially when they are planning to start a family. Pregnancy costs and related surgical procedures can cost up to 10,000 to 15,000 dollars, which is a lot for freshers. If you provide these benefits, they can grow their family without worrying about medical bills.
In case any problem arises, your employees will be able to talk to you freely and without hesitation, which may be causing work-related stress or affecting their productivity. Gaining your employees’ trust is not an easy feat, and by providing health benefits and related perks, you are turning things in your favor. By building a stronger rapport and gaining their trust, they will work harder to show gratitude.
6. Healthier Working Environment
As mentioned, your employees will not only be physically and mentally healthy but also make the working environment more positive. Colleagues that share a healthy rapport portray excellent teamwork, which pushes the company towards success. While healthy competition is welcomed, bitter rivalry between your employees can cause a rift at the workplace, which can spread negative energy and ruin the working environment. You can also arrange health seminars or fitness days where your employees can get together and exercise. This will not only build a healthier working environment but also make them realize the importance of health and fitness. Such wellness initiatives retain focus and encourage your employees to work better.
7. Tax Benefits
By providing health insurance, you can expect several tax benefits such as reduction of production losses and turnover costs. The government forgives the tax value of health insurances provided by employers, which sums up to around $250 billion annually. If you look at the big picture, this tax break can be a huge financial relief. Even though you are spending a lot of money to pay the insurance premium for all employees at once (which forms a significant part of your yearly budget), you can save money by avoiding turnover cost losses. In a way, you are providing your employees an intangible tool that is necessary to work for a prolonged period.
Hire a tax advisor to calculate the amount of taxes you will be paying annually, along with the amount spent on an employee. Even if fluctuations in government regulations or medical industry innovations can change treatment costs and insurance clauses, the benefit of tax break will remain constant, thereby giving you one less financial aspect to worry about. Certain small businesses are also given a tax credit benefit.
8. Pay Lower Premiums
Certain insurance companies offer plans and packages that demand lower premium rates if bought in bulk. Such collective packages or deals help you save a lot of money in the long run. Find insurance plans that give offers and discounts on the premiums to be paid. For a better understanding, consult a health insurance broker. These professionals can suggest plans based on your company’s budget, needs, and the number of employees. Just set an appointment and they will visit you for a meeting at your workplace. If you are satisfied with the decision, all you have to do is shop the plans. If your employees have any questions related to health insurance, these professionals are also free to answer them.
As you can see, providing health insurance to your employees is not only beneficial for them but also for your company. By making your employees happy and content, you can achieve successful results and get closer to your company’s annual progress. If your company does not provide your employees with health insurance yet, it is time to revise the package you offer. While a 401k plan and PTO are crucial inclusions to attract top talent, health benefits are also increasingly becoming a priority. It will not only bring in experienced professionals but also help retain the current ones. Ultimately, a robust health insurance plan and related benefits can help you stand apart from your competitors and build brand awareness. A majority of companies already provide their employees with health benefits, which is another reason to join the bandwagon.
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