Have you ever questioned how employer insurance affects your decision to stay with a company? Employer-employee insurance may help employees in SMEs, MSMEs, startups, and developing firms improve their job satisfaction and retention. Let’s look at how this perk affects employees and why it’s important for businesses to consider.
1) Financial security and peace of mind
Employer-employee insurance provides a safety net that can alleviate financial stress related to medical emergencies, accidents, or other unforeseen events. In India especially, where the expense of healthcare is relatively high, having this assurance that both you and your family are insured is very comforting. This financial security increases the likelihood of employees’ commitment to an employer who provides such benefits in case they develop a medical condition that would cost them a lot of money. It is not about the money but rather the guarantee that during the time of hardship, the employer would be supporting them.
2) Enhanced job satisfaction
When employees have a feeling that somebody cares for them, then they are bound to be happy in their workplace. Employee benefits are one of the ways that employees feel valued; this includes health insurance, life insurance and other forms of insurance. In countries like India where family responsibilities are quite demanding, it goes a long way in improving job satisfaction when one is aware that their employer is offering them a good insurance package. This feeling of being appreciated is linked to increased job satisfaction, improved performance, and a more unified team, which is in the interest of both the worker and the company.
3) Reduced turnover rates
Employers should ensure that they offer their employees various health insurance products because it goes a long way in ensuring that they retain their employees. Loyalty is earned when an employer takes an interest in the welfare of its workers. This is especially so if the company is an SME or a startup where talent retention is key to organisational success. While high turnover rates could also be expensive and inconvenient, adequate insurance cover facilitates the creation of a stable staff base. This stability is crucial for small and medium enterprises since they depend on an experienced workforce to enhance their growth and development.
4) Attracting top talent
Affordable health insurance policies are often an important aspect of the compensation package within the competitive labour market. As candidates tend to weigh benefits offered by employers, offering comprehensive employer-employee insurance may help one’s company stand out among others. This is particularly relevant in the current emerging startup environment in India where talent competition is cutthroat. Providing various insurance solutions can be instrumental in recruiting and selecting employees, making it easier to attract the best talent to your business.
5) Increased productivity
When employees can get good health insurance, they are likely to seek medical check-ups at the right time thus cutting down on sick days and boosting their health. Healthy employees can work effectively to enhance the company’s performance and growth, hence the importance of a health check. While preventive healthcare is not much of a concept in India, employer-funded health insurance can help employees pay heed to their health, thus resulting in fewer sick days and increased productivity. This approach towards health aces for the employee as well as the employer since it leads to an efficient workforce.
6) Building a positive employer brand
Companies that offer comprehensive health insurance benefits are often seen as desirable employers. This can enhance your brand reputation, making it easier to attract and retain employees. This can help in improving the image of your brand and thus you can be able to secure the best employees in the market. Consequently, positive employer branding results in long-term organisational performance. In India where people highly value mouth recommendations and community prestige, being an employer who offers good health insurance plans to his employees is one of the best ways of marketing. This reputation does not only come in handy in recruiting new talent but also in ensuring that the existing employees remain loyal since they are proud to be associated with a reputable and empathetic employer.
Ending note
Employer-employee insurance is not just a perk; it is a strategic measure that can change employee turnover and satisfaction for the better. Promising outcomes include financial stability, improved employee satisfaction, lower turnover, and greater opportunities to acquire the best employees. In the case of SMEs, MSMEs, start-ups and growing organisations, it makes good business sense to opt for good health insurance plans which in turn can help in developing a pool of loyal, committed, and satisfied employees. Therefore, by ensuring that employees are made to feel special and secure, organisations can develop a strong employer brand as well as sustain the business in the long run.
