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Why having a corporate health plan is so beneficial

2 November 2016 - 9:21am

The benefits of offering employees a corporate health plan are something that it seems have not been made clear enough to employers. For whatever reason, there are some common misconceptions about them, or that there is an element of confusion about what a corporate health plan is amongst business owners. 

Carefully crafted policies can see essentially any Australian company reaping the benefits as well as their employees. There is in fact a plethora of reasons why it's beneficial for employers to offer insurance benefits to their employees.

Attracting the best employees with the best benefits

The landscape for hiring employees is as fiercely competitive as it ever has been. With younger, more qualified staff available, a premium has been placed on attracting the very best candidates. Businesses that offer health insurance as part of the benefits package tend to attract more applicants.

With younger, more qualified staff available, a premium has been placed on attracting the very best candidates.

Health benefits are fast becoming a pull factor for candidates towards businesses, especially given how costly healthcare can be. For any business to compete and ultimately thrive, the acquisition of skilled and engaged employees is imperative. To greater appeal to potential candidates, having tangible benefits such as corporate health insurance can help them stand out from competitors.

Enhanced engagement increases productivity

Corporate health plans don't stop at attracting new employees, it's important to recognise and reward existing workers. When employees are engaged in their work, their productivity soars. A study conducted in the UK by the University of Warwick's Centre for Competitive Advantage in the Global Economy in concurrence with the Social Market Foundation found that happy and engaged workers resulted in a 12 per cent spike in productivity company-wide.

Reassuring staff members by showing them that they are valued is important in the day-to-day running of any business, and a corporate health plan is one such manner of doing so. Knowing that their employers ultimately have their health and best interests at heart will help show workers that their work is acknowledged and appreciated. This will help them feel more engaged in their work, ultimately benefiting the corporate culture and the business as a whole.


Having an attractive corporate health plan will attract recruits and help retain employees.Having an attractive corporate health plan will attract recruits and help retain employees.

Retaining the best

For any business to succeed or grow, it's key that they minimise turnover as best they can. It's difficult for any business to succeed, let alone progress, when employees are continually coming and going. A high turnover can be detrimental to morale, and prevents any possibility of developing a strong corporate culture.

Writing on LinkedIn, head of administration at In2Matrix pointed to the important role that health benefits can play in retaining employees. "Without them, your workers will likely be eyeing other positions that can give them the health coverage they need," she writes.

The importance of the benefits for businesses to introduce corporate health plans is only growing.

Understanding how health benefits can benefit your company

The importance of the benefits for businesses to introduce corporate health plans is only growing. As the cost of private health insurance continues to rise, fewer people are able to access the benefits for themselves and their families. If an employer can either provide some financial assistance towards this, or even take over the costs altogether, there is no reason why that wouldn't have a positive impact.

When it comes to the role that a corporate health insurance plan can play in the success of a business, it's important to understand and recognise the long-term benefits. While there is an initial investment involved, the benefits outlined above underline how beneficial in the long-term corporate health plans can be to a business. As well as saving money on constant recruitment, your staff will be more productive as they are more engaged and happy in the knowledge that their efforts are being rewarded.