The role of Group Health Insurance In Employee satisfaction

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Employee satisfaction is one of the KPIs (Key Performance Indicators) for human resources, people operations, or whichever term is attributed to the designation by your organisation. This metric is valuable in determining the attractiveness of an organisation for prospective talent and current employees.

With high employee satisfaction, organisations have high loyalty among employees, resulting in higher retention rates. Organisations employ several retention measures, such as competitive bonuses, a positive work environment, and growth opportunities to achieve this. However, there is one tool that can be used to ensure employees’ well-being and financial security, which is increasing job satisfaction for employees. This tool is called group insurance plans.

Keep reading to find out what it is, its benefits and its role in employee satisfaction.

What is group health insurance?

Group insurance plan is a type of health insurance specially designed to cover the needs of an entire group. As a type of health insurance, it provides cashless claims or reimbursement for medical expenses a policyholder bears when facing covered risks.

One of the primary reasons for opting for a group policy is its affordability and convenience. That is because group policies help divide the cost between all members, reducing the burden on an individual while being more cost-effective due to pricing.

What are the benefits of group health insurance?

One of the core metrics for any business is profit, and one of the best ways to do that is by reducing costs. And this is why many companies consider getting the cheapest plan for their employees just to fulfil the legal requirement. However, choosing the right group insurance policy for employees can benefit those covered and the organisation.

Here are some of the benefits of providing group insurance for employees and the company:

Unified coverage for all members

Under group plans, companies can provide a single plan for all employees regardless of age, gender and other factors.

Additional coverage options

Group employee insurance plans come with several additional coverage options, allowing employers to provide better coverage for their employees.

Ensures financial security for employees

As health insurance, group plans play a significant role in protecting employees’ financial security by reducing out-of-pocket expenses.

Boosts morale and productivity

Providing health insurance also reduces the constant dread over risks and helps boost morale and productivity in the office.

Cost-effective

Group plans are significantly more cost-effective when compared to purchasing individual plans for each member. This cost further comes down when covering a larger number of individuals.

Build the right plan

As every group’s needs differ, organisations can build the right plan for them by customising the policy.

Tax benefits for the employer

The premiums paid under group plans are tax deductible, thus providing tax benefits to the employers who typically sponsor the policy.

Better talent attraction and retention

In the current state of the world, health insurance is one of the decisive requirements for prospects looking to join an organisation.

What role does group health insurance play in employee satisfaction?

At a time when there are growing concerns over health risks and the rising cost of treatment, a reliable and beneficial group plan plays an instrumental role in ensuring the security and financial well-being of employees. Not only this, health insurance acts as a decisive advantage in the competitive job environment where it is vital to attract the best talent for our organisations. Additionally, several studies have noted that providing health insurance is one of the significant factors in deciding to join a particular company or remain in one. Other than this, health insurance reduces the ambit of out-of-pocket expenses for employees, protecting them and building a safe and productive working environment for them.

Conclusion

In conclusion, providing a group insurance policy for employees is vital to employee satisfaction, ensuring higher talent attraction and employee retention. While it may seem like just additional expenses, reducing risk for them and building a loyal and productive workforce by opting for the right policy is possible. So secure the wellbeing of your employees today with the right policy providing coverages based on your group’s needs.