Group Health Insurance for Employee Retention

How does Group Health Insurance Help in Reducing Attrition?

Employee health insurance is medical coverage provided by the employer to his employees. It includes health insurance benefits for all employees under a common umbrella. Group health plans not only form a distinctive part of the employee benefits package of big corporates but have also become essential for startups and SMEs. It is a tool to reduce attrition rates and remain competitive in the market.

The benefits of group health insurance plans for employees are many, which may lead to lower attrition rates. Some of these benefits are mentioned below:

1. Gives them peace of mind: With group health plans employees get access to quality healthcare, usually free of cost. They are assured that in case of medical emergencies, the company has their back, and the financial burden would be taken care of.
2. Most popular fringe benefit: Group health insurance in recent times has not just emerged as a standard fringe benefit offered by the employer. It has instead become a necessity. It is one of the most common types of fringe benefit that is widely offered and utilized.
3. Makes them feel valued and cared for: The employer being present at the time of need makes an employee feel valued and cared for. Employee health insurance thus inculcates the idea of belongingness toward the organization. The employee feels a sense of responsibility towards the organization which in turn improves his performance at work.

Offer Comprehensive Group Health insurance for Employee Retention

With changing work dynamics and employee needs, group health plans have undergone tremendous change. The benefits of employer employee insurance for employee retention can be achieved if the coverage is flexible, innovative and meet employees’ healthcare needs. Some of the benefits/ features that can be offered in a group health insurance for employee retention include:

• Higher sum insured: A higher sum insured would mean protecting employees from financial stresses during emergencies.
• Inclusions of dependents to the plan: Including dependents like spouses, children and parents has become a necessity. 
• OPD cover: It is always a good idea to enhance the basic coverage to cover OPD expenses.
• Maternity benefits: If the average workforce is between the age of 25 to 40 years, maternity benefit is a must-have add-on.
• Daycare treatments: Treatments requiring less than 24 hours of hospitalization, can be opted for.
• Wellness benefits: Be it fitness, gym, mental health, or other activities that encourage employees to participate and promote wellness initiatives. Almost every group health insurance company offer these benefits.
• Group insurance online: A smooth and seamless online experience is the basic expectation of new-age employees. 24/7 claim assistance, hassle-free procedures and quick outcomes are highly appreciated.
• Online consultation and booking: Telehealth and booking lab test and OPD appointments online are added features that can be offered to the employees.

Conclusion

Employer-funded group health insurance is important for hiring talent but more important for retaining them. It has emerged as a solution to address high attrition rates. However, offering traditional plans does not serve the purpose, and the companies should look to offer comprehensive group insurance plans.