There’s a constant tussle in the market for hiring the best people, irrespective of the industry. Every company wants the best employees because they directly impact the growth of the business. Research says that with talent managers and engaged employees, companies, on average, get 147% higher earnings per share than their competition.
As a result, you’d find companies providing best-in-class benefits over and above a competitive pay to their employees. These benefits vary from paid vacations, team holiday outings, to world-class in-house facilities like cafeteria and gaming rooms. For instance, Netflix, considered to be one of the best employers in the world, offers unlimited holidays to its employees. Similarly, Google offices have highly-trained massage therapists who can help employees relax when they're feeling particularly tense or stressed.
While these perks may come off as alluring and extra-ordinary, sometimes getting the basics right also does the trick. One of the most basic benefits you can provide to your employees is an adequate health insurance coverage. Study reveals that employees value health insurance as the most important benefit.
Getting employer-sponsored benefits is a norm in most developed countries, including the USA, where 90% of the employees get medical benefits from their employer. However, not many Indian employees enjoy this privilege. While the reason why companies in India are not investing in employee health insurance could be multifold, in this article, we will cover the reasons why it’s a good proposition for you to consider making this investment.
However, before we go into the why of things, let’s first understand what health insurance is.
What is Health Insurance?
Medical bills are the biggest cause of US bankruptcies. Undeniably, health care costs can be equally burdening for Indians, too. And that’s where health insurance comes to the rescue.
According to Investopedia, “health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured”. For instance, if an employee falls ill, or meets with an accident (leading to hospitalization), health insurance can save them from the burden of high medical costs.
So how does offering health insurance to your employees benefit you?
Why offer health insurance to your employees?
Attract and retain talent
A FRACTL survey reveals that 88% of workers most appreciate the benefits of better health, dental, and vision insurance. A probable reason for this could be that getting health insurance is an overwhelming process. It includes the selection of the right insurance policy, from a reliable insurance company, and taking care of negotiations. Not to mention the burden of bearing the cost of the insurance. So, when you take this load off of your employee’s shoulders, by helping them with a trusted insurance policy and bearing the cost for it, your employee feels cared for. They are not only attracted to work in your company but also want to stay there longer.
Enjoy tax advantages
Any expense an employer incurs related to health insurance is 100% tax-deductible. So, the amount that you pay as a premium is not counted in your business income. Rather it is waived off as a business expense. So, you don’t have to pay any tax on that amount. Even if you are a small business with less than 25 employees, your employee insurance is bound to get you a tax credit.
Health insurance these days is not just limited to covering hospitalizations costs, it also involves check-ups and doctor consultations (OPD). For instance, Plum health insurance plans help you with add-ons like fitness and nutrition, consultation, annual health-checkups, and more.
When your employee’s health is being taken care of, employees are less likely to fall sick. This directly translates to lesser absenteeism and saves costs up to $1,685 per employee. Not just that, this has a direct impact on their productivity at work. A study reveals that healthy employees are three times more productive as compared to employees with poor health. Providing health insurance also shows your commitment towards the well-being of your employees, which thereby, motivates them to perform efficiently at work.
Invest In Your Employee Heath Now with Plum
Plum provides customizable employee health insurance plans starting at just ₹999/year for all companies, however big or small they are. We aim to bring transparency to group health insurance, both in terms of what the insurance covers, and how the insurance is priced. With Plum, we deliver easy-to-manage insurance for you and your employees.
Wondering how to get started? Try our group insurance premium calculator - you'll get an instant estimate for an insurance policy according to your needs.
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