Does Group Health Insurance Improve Employee Retention?

Employee retention is an important part of any organization, be it a small or medium scale company to a giant in the industry.

Hiring new employees take a lot of time, money, and resources. In fact, it has been found that it can cost an organization almost 33% of the leaving employee’s salary to get a replacement. This cost comes in addition to the salary of the employee replacing the person.

Also note that this is only the direct expense of losing an employee. Several indirect costs are also involved. For example, it can take the new candidate up to 6 months to reach the level of productivity of the leaving employee. And in some cases, it can take even longer. This loss in productivity can hurt the organization badly.

So, focusing on employee retention is an absolute must for any organization.

Group Health Insurance can play a crucial role in employee retention

There are many ways organizations can improve on their employee retention rate. One of the most popular ways of doing that is to offer group health insurance to employees.

This is something that almost every top organization does. By investing in the employee’s health and well-being (along with their families), they ensure that their workers stay healthy and happy.

Remember, the key here is not just offering any group insurance policy for the sake of it. It needs to ideally be a quality plan providing enough coverage for every employee and their families.

Group Health Insurance is a key factor that employees choose

Employer-sponsored health insurance plays a key factor in affecting an individual’s decision to work for a particular organization or not. Furthermore, it also affects the employee’s decision to stay in that company.

If the employee is satisfied with his/her employer’s group health insurance policy, s/he is more than likely to continue with the organization.

Direct relation between workplace health benefits and job satisfaction

It has been found that there is a strong relation between quality workplace health benefits and employee morale.

Among all workplace benefits, most employees consider health benefits as the most important one of all. So, investing in group health insurance doesn’t just improve employee retention but also boosts workplace morale and productivity.

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Always take an informed decision when purchasing group health insurance for your organization. Talk to our experienced advisors today to get the best plans at the highest value for your money.

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