Insurance is only worthwhile if it makes financial sense. Protecting your employees and their families can benefit your business. Take a look at how the benefits of Employee Insurance outweigh the cost. To keep it simple, we'll just give you the data on employer-funded health insurance.
Absenteeism & Productivity
It can be costly when staff or their family get sick. An absent employee typically costs a Kiwi business $600 to $1,000 a year [1]. However, health insurance for the same employee could cost your business just over $13 a week [2].
Businesses offering employer-funded health insurance reported a 17% drop in absenteeism [3].
People with employer-funded health insurance seek out treatment earlier and take fewer sick days overall [4].
Absenteeism in the workplace is 43% higher for financially stressed employees. That is 2 extra sick days per year [9].
Attraction & Retention
In a tight job market, finding and keeping the best people is a challenge. Offering Employee Insurance can give you the edge you need.
On average, financially stressed employees indicated they would be likely to leave their current employer 2 years earlier than financially secure employees [9].
When considering a job, 32% of full-time employees rate employer-funded health insurance as more important than an employer’s reputation or the recommendations of friends and family [3].
87% of professionals agree that an organisation’s workplace wellness policy is important when considering new opportunities [5].
Offering Employee Insurance as part of a remuneration package helps you retain and attract the right talent.
Engagement & Satisfaction
When your team is engaged, they can deliver to their full potential. Employees with employer-funded health insurance also report higher job satisfaction than those without cover [3].
92% of professionals say it is very or somewhat important for them to work for an employer that offers a workplace wellness programme [6].
The likelihood of an employee staying with an employer that has a workplace health and wellbeing programme increases from 15% to 24% compared an employer without these benefits [3].
Providing financial support for your employees and families helps to foster loyalty and security [9].
Culture & Health
Health and wellbeing strategies can help reduce health risks (like stress) for your employees [4].
One contributing factor to stress within your organisation could be the impact of other sick employees. One third of employees say they suffer from stress more when their colleagues are absent due to a serious condition [8].
Employees with subsidised health insurance are more likely to visit a doctor for a regular check-up, a medical specialist or physiotherapist and have elective surgery [8]. This can keep them healthy and performing at their best.
A financially stressed employee has a direct impact on performance [9].
Protecting employees means that you have a plan when the worst happens, and fewer tough decisions when you have the moral obligation to support your employee and/or their family.
References:
[1] Wellness in the Workplace Survey, 2017, BusinessNZ and Southern Cross Health Society. [2] Pricing of $13.11 based on a fully subsidised Southern Cross Wellbeing One plan with a work scheme size of 10 with an average age of 40, as at November 2017. [3] Employer benefits of health insurance, TNS, August 2015. [4] The role of employer funded health insurance on business performance, HRINZ, June 2016. [5] The value of promoting employee health and wellbeing, Robert Walters Whitepaper. [6] Robert Walters white paper ‘The value of promoting employee health and wellbeing’ (based on a survey of 1,000 hiring managers and more than 2,400 professionals across Australia and New Zealand). [7] Kantar TNS, October 2016, (2,009 New Zealanders in paid employment). [8] Understanding the employer benefits of health insurance, TNS, August 2015, survey over 2,300 New Zealanders in full time employment. [9] AMP Australia/TNS survey 2014, 2439 employees of Australian workplaces.