In today’s fast-paced and highly competitive business environment, the benefits of offering health insurance to employees extend far beyond merely meeting regulatory requirements.
This blog delves into the multifaceted benefits of health insurance, exploring how it enhances employee satisfaction and loyalty, delivers significant cost savings, and fosters a healthier, more productive workforce.
Employee Retention & Attraction
Offering comprehensive health insurance not only enhances your ability to attract high-quality candidates but also sets you apart from competitors. A substantial 46% of employees report that health insurance was a decisive factor or positively influenced their decision to accept their current job—which shows that job seekers often prioritize health benefits when evaluating job opportunities.
A robust benefits package, including health coverage, is also important for retaining your current workforce.
Once hired, employees are more likely to stay with a company that provides comprehensive healthcare coverage, reducing turnover rates and the associated costs. In fact, 56% of U.S. adults with employer-sponsored health benefits state that their satisfaction with their health coverage is a key reason they choose to stay with their current employer.
Demonstrating a commitment to employee health and financial security positions employers as attractive options for top talent and creates work environments that employees want to stay in.
Tax & Cost Benefits
While some businesses might be intimidated by the costs associated with providing health insurance, this benefit can actually lead to significant savings. The money spent on employee health insurance is tax-deductible, potentially reducing your federal and state tax liabilities and even qualifying you for a lower tax bracket.
Businesses can also take advantage of programs that offer tax breaks and tax credits. These tax advantages can lead to significant savings, making health insurance a cost-effective investment in your workforce's well-being. Be sure to talk with an employee benefits professional to learn more about these opportunities.
Businesses with more than 50 employees—applicable large employers (ALEs)—must offer affordable health insurance coverage that meets minimum standards to full-time employees and their dependents. Failure to meet these standards can result in ESRP penalties.
Also, by offering qualifying coverage, employers of all sizes can fulfill their ACA obligations, meet minimum standards according to their business size, avoid potential penalties, and ensure compliance with healthcare regulations—limiting financial risk.
Increased Productivity
One of the most obvious benefits of health insurance is the increased health of your employees. With the ability to better handle their health, employees are less likely to be out sick, which leads to an overall increase in productivity.
What many employers don’t consider, however, is the concept of presenteeism. This refers to illness or conditions that, while minor enough to allow them to go to work, can have a negative effect on their performance.
For example, symptoms like those of a debilitating cold or flu might actually be due to treatable allergies. Allergies are a leading chronic illness in the U.S., affecting up to 50 million people and posing a significant drain on productivity.
With comprehensive healthcare benefits, illnesses and conditions like this that could drain productivity for weeks through presenteeism can often be remedied in days.
Accessible healthcare benefits allow employees to quickly address and treat health issues, bringing valued team members back to full health and productivity more swiftly. This ensures that employees are not only present but also fully functional and efficient, thereby boosting overall productivity and contributing to the success of the business.
The benefits of health insurance often outweigh the potential costs. By investing in the health and well-being of their employees, businesses can cultivate a loyal, motivated, and productive workforce, ultimately leading to long-term success and a competitive advantage in the marketplace.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.