How Health Benefits Play into a Health Retention Strategy

If you’re a business owner looking for talented employees, you probably have clearly defined strategies you use to attract new candidates. This could include conducting extensive interviews, training, or outlining job requirements. A common strategy used by most small and medium-sized companies to retain talent is providing robust health benefits.

Employees are more likely to remain at their employer when they like their health benefits . Having a comprehensive employer-sponsored health coverage offering is essential for recruiting, retention, and performance.

A new survey conducted for America’s Health Insurance Plans (AHIP) reveals that about 56% of Americans with employer-provided health benefits consider health care coverage a significant factor  in deciding to stay in their current employment. 46% of the individuals confirmed that health insurance coverage was either a strong influence or the key factor in choosing their job.

The Importance of Health Benefits in Retention Strategy

Providing adequate and flexible health insurance coverage for your employees will contribute to your company’s success. Organizations that offer competitive health insurance packages will likely see increased employee performance and retention.  According to a 2019 report from the Kaiser Family Foundation, 47.4 percent of U.S. companies offer health benefits coverages to employees.

In addition, the U.S. Bureau of Labor Statistics (BLS) reported that in 2020, employer-provided benefits were available to about 70 percent of employees in the private sector. Does the company size matter? Based on data from SHRM, approximately 98 percent of firms with less than a hundred individuals, including part-time and full-time staff, provide health benefits to employees.

If you plan to add health insurance benefits to your employee compensation, there are many advantages you can enjoy. The most specific ones include the following.

Improved Performance

Most employees value health insurance benefits. If you offer robust benefits, your team may feel appreciated, happy, and more satisfied with your company. Satisfied employees are more engaged in their job, loyal, and are less likely to leave. When employees have adequate healthcare coverage, it is likely to improve their personal and family care.

Healthcare is expensive, which can be a significant burden to many. With proper coverage, employees can visit the doctor whenever they feel unwell and keep their health in check. In the SHRM study, happier and healthier employees were found to take fewer sick leaves, reducing absenteeism by about 27 percent. Subsequently, organizations that invest in wellness and healthcare programs experience a significant increase in productivity.

Retention

In today’s highly competitive job market, having good medical coverage for your team is critical. Remember that most organizations are already offering these benefits to their employees. If you haven’t provided medical coverage yet, you are at risk of losing talented employees to your competition. Studies have shown that 56% of employees consider health coverage benefits a critical factor when choosing a job or staying in their job.

How Design Health Can Help

If you’re considering offering healthcare coverage for your employees, there are plenty of healthcare plans to choose from.  Design Health can help you select the benefits that meet your goals and objectives.   You can reach us at 720-330-2283

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