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Does corporate health insurance improve staff retention?

25 August 2016 - 10:17am

Corporate health insurance is a major consideration for many employees that affects whether or not they work for a particular company, as well as whether they stay at that position. The right health plan can help you keep hold of key talent, as well as attracting more of the same calibre of worker. 

Here's why and how.

What makes corporate health insurance attractive?

Health insurance is becoming a necessity in the modern world, but it is also becoming more expensive. According to the Melbourne Institute's Household, Income and Labour Dynamics in Australia survey, the average Australian family was spending 20 per cent more on their private health insurance in 2014 than it was in 2006. 

It is understandable, then, why so many workers would find the inclusion of a corporate health insurance plan at their workplace so attractive. Cancer, diabetes and other illnesses are a rising concern in the health industry of Australia, not to mention the threat of workplace injury. Depending on the structure of a workplace's health insurance, the costs that would be associated with standard private health insurance could be subsidised or even outright removed in some cases. 

Perhaps that is why almost half of all respondents to a MetLife employee benefits survey indicated that discounted health insurance was of primary importance to their happiness in the workplace. Health benefits and wellness programmes are becoming increasingly meaningful to a nation of people becoming more concerned about their health and wellbeing.

Business health care is about more than just numbers.Business health care is about more than just numbers.

Do people stay for the benefits?

Employees tend to stay with a company that offers excellent health benefits.

As a result, it is no surprise that employees tend to stay with a company that offers excellent health benefits.

About a quarter of respondents to an Australian Human Resources Institute (AHRI) survey vouched for this, saying that competitive pay and benefits were a primary reason that they thought people decided to stay with a company. Clearly, it isn't just your employees that benefit from a corporate health plan - your business is also able to keep a firmer grasp on key talent and reduce staff turnover.

Despite this, it appears that many businesses do not utilise their health plan to its greatest extent. Only about a third of companies, according to the AHRI survey, used competitive benefits as a way to keep a hold of their workers. Furthermore, it isn't just retaining talent through health benefits that is falling by the way side. People clearly want to work with a company that is considerate of their health needs, but only about 12 per cent of companies use benefits as a means to attract key talent, according to a MetLife survey. Clearly, people aren't yet aware of the effects that a good health plan can have.

Beyond retention

That isn't to say that the importance of employee health isn't apparent to some corporations.

However, that isn't to say that the importance of employee health isn't apparent to some corporations. Wellness programmes are becoming increasingly popular as part of bundled health insurance plans, giving the employer the ability to attract and retain talent, as well as keeping absenteeism and workplace illness low.

They also know how important such things are to morale, with more than half of those businesses with such wellness programmes having developed them for human capital reasons, according to one study from PWC.

As we slowly move further into a future where health isn't simply the purview of the doctor, the insurer and the patient, but also the employer, companies have to realise that it isn't just a matter of workplace health. It is a matter of retention, attraction and efficiency for their enterprise. If you'd like to find out more about corporate health plans or consultancy, make sure you get in touch with the experts here at HICA to find out how we can help you make the most of your key talent. 

Call us on 1300 44 22 01.