Want to know what keeps top employees from leaving?
Employee health benefits. These packages are becoming an increasingly important factor when employees decide to stay or seek other companies. Today, 92% of employees value health benefits, so how much they like their current insurance can make a difference to their overall satisfaction and loyalty to a company.
In this article, we’ll explore…
- The role of health insurance in employee retention
- The importance of coverage for satisfaction
- The hidden costs of inadequate insurance
- The features employees are looking for in their benefits
- Practical tips for evaluating and improving your benefits offerings
Health Benefits and Employee Loyalty
As the job market continues to evolve, employees are paying more attention to their employee benefits packages before they accept new roles. For many job seekers, a competitive salary is no longer enough. Employees are also evaluating what insurance is provided by the company. Businesses offering more comprehensive California employee benefits are finding higher satisfaction and retention across the board.
But there’s more to it than the money…
Employee benefits show your staff that you care about them and their future. When people feel cared for, they are more loyal to the companies they work for. Let’s face it, nobody wants to work somewhere that doesn’t support them when they need help. Employer-provided employee benefits are becoming a differentiator in the market.
Put yourself in the shoes of your average employee. Medical expenses are a major fear for most families. A single emergency room visit can cost thousands of dollars. Without good health insurance, your employee is worried about what could happen if they or a family member get sick.
This anxiety has a knock-on effect:
- It distracts them at work
- It affects productivity
- It impacts their overall satisfaction with their job
- It makes them less loyal to your company
But when you provide quality employee benefits insurance, you take that worry away. Your team can focus on their work, safe in the knowledge that there is a safety net in place if they need it.
The Impact on Loyalty
To understand just how much health benefits matter, let’s look at the statistics.
78% of millennials think that wellness programs at work have a positive impact on their loyalty to their employers. But it’s not just millennials that care about the benefits they get. Generation Z and the baby boomers are just as concerned about employee benefits as each other.
When a company’s health benefits package is right, employees feel cared for and valued. They are less likely to leave. They talk positively to other people about your company. They perform better in their role.
But if you get it wrong, that’s when things get tricky. Dissatisfied employees start looking for other jobs. Your turnover rate increases. You have to spend more time and money on recruiting replacements.
Comprehensive Coverage = Trust
Did you know…
Employees are 2.5x more likely to feel holistically healthy if they have a high degree of trust in their employer’s leadership? A lot of that trust starts with basic things like health insurance that is both comprehensive and covers all their needs.
Employees want health benefits that are simple to understand and use. They don’t want a maze of policies they need to trawl through every time they get sick. Complex benefits show a lack of care on your part.
True comprehensive coverage means employees can visit their doctor without anxiety. It means medications are affordable, and their family is protected if anything happens to them.
Desired Features for Maximum Satisfaction
Ok, now let’s take a look at exactly what employees want in their health benefits package…
It’s not just about having insurance. They want good insurance that genuinely covers their needs. Here are the features of health benefits employees are looking for:
- Preventive care coverage: Everything from regular checkups to screenings should be fully covered. It’s good for catching problems early and keeping employees healthy in the long-term.
- Mental health resources: Counseling, therapy, and mental health programs are just as important as physical healthcare. Benefits should cover this at an affordable rate.
- Family coverage: Most employees have dependents to care for too. This includes spouses, children, and sometimes even parents.
- Affordable out-of-pocket costs: If the deductibles and copays are too high, then employees aren’t actually using their insurance. They want benefits that are affordable to them.
- Prescription drug coverage: This can be an enormous expense for many families, so good prescription coverage is a must-have.
The best employee benefits insurance covers all these areas. It doesn’t just provide bare-minimum coverage. It provides real peace of mind.
Improving Your Health Benefits Strategy
Ok, so you know what employees want in their health benefits, but how do you improve your offering?
First of all, you need to understand the specific needs of your team. The health benefits that matter most to a group of young single employees will be different from those that matter to employees with a young family.
So take the time to survey your employees. See what they like about the current benefits package and what’s missing. Analyze the utilization rates of your current offerings. Are employees actually using the benefits you are providing?
Shop around for better options. The employee benefits insurance market changes all the time, so the options you have now might not be the best.
Communicate clearly about the benefits you offer. Put together simple guides for employees to understand and refer to. Be available to answer any questions they might have.
Consider supplemental coverage options. Dental, vision, and critical illness are all examples of supplemental coverage that can make a big difference.
Don’t forget to review your benefits package annually. Needs and markets change, and a regular check ensures your benefits are right for your employees.
The Cost of Doing Nothing
Before you leave this article, let’s talk about a simple fact that all business owners must face:
Providing inadequate health benefits is costing you money.
Your employee leaves because they are dissatisfied with their insurance. You have to find and train a replacement. They cost you time, money, and disruption. Replacement costs can range from 40% to 400% of a worker’s annual salary depending on the position.
Benefits dissatisfaction is a leading cause of voluntary employee turnover, and the higher up the chain of command you are, the more this applies.
If you lose just one valuable employee a year because of sub-par health benefits, it’s a safe bet you are spending more on replacement costs than you would have had to spend by upgrading your benefits.
To make matters worse, unhappy employees who stay don’t work to their full capacity. They are distracted and disengaged.
Closing Thoughts
Employer-provided health insurance isn’t a line item on your company’s budget. It is an investment in happier, more loyal, and more productive employees. Businesses that make employee benefits a priority see better outcomes, from increased retention to a stronger culture.
To sum up, let’s take a look at what we covered.
- 92% of employees value health benefits
- Strong employee benefits = increased loyalty and satisfaction
- Comprehensive insurance = trust with your employees
- Benefits need to be reviewed regularly
- The cost of bad benefits > the cost of good benefits
If you want to keep your top performers and attract the best talent, you need to make sure your health benefits strategy is up to scratch. Start with an audit of what you already provide, then talk to your team about what they need. Evaluate your options and invest in the areas that matter most to your employees.
They will notice and stick around to show their appreciation.
The owners and authors of Cinnamon Hollow are not doctors and this is in no way intended to be used as medical advice. We cannot be held responsible for your results. As with any product, service or supplement, use at your own risk. Always do your own research and consult with your personal physician before using.
Meg is an author at Cinnamon Hollow. She writes on a variety of topics sharing tips and ideas for daily life.
