The startup companies provide very attractive perks to retain employees in the long run. One of the aspects that must be included in the employee benefits package is medical health insurance. India recorded an attrition rate of 4.5% in unicorn start-ups from August 2023 till August 2024. Employee benefits could help bring such a rate down, too. Employee benefits, including medical health insurance and well-being activities, appear to be negatively related to turnover and directly related to morale.
For instance, companies that invest in health would incur minimal attrition over the very companies having the highest membership. This proves that supporting employees with the right benefits pays off well, even for the employer.
Significance of Medical Health Insurance
New-age companies are bringing in lots of benefits for their employees. In this new competitive environment, employees decide to go for culture and individual benefits rather than just the salary. For instance, a high-value employee would think about going for the start-up instead of offering attractive salaries and other benefits in the long run to the organisation.
- Attracting and Retaining Talent: According to a survey carried out by Glassdoor, 48% of employees actually considered attractive benefits and perks as a reason that would motivate them to accept an offer. Starets are always in a tight race for top talent competition against large corporations. Medical health insurance proves that an organisation cares for its employees’ welfare.
- Enhancing Productivity and Morale: Employees with health insurance will generally pay early attention to their health problems and tend to take fewer sick leaves. Having that assurance that one’s health is covered would provide peace of mind and also help boost workflow productivity.
Key Benefits of Offering Medical Health Insurance
Health insurance is a sure way to grow your start-up by boosting employee satisfaction and meeting the growth aspirations of your company, and it would enhance your credibility. Some of the major reasons for establishing a health insurance plan for medical purposes can be:
1. The Financial Security of Employees
Medical emergencies involve heavy events like expensive financial burdens. This, therefore, shields employees from adverse contingencies, such as sudden expenses.
2. Creating a Healthy Work Environment
If health is prioritised in an organisation, there will be a sense of belonging and faith among employees. They are likely to feel cared for, thus a closer tie between employees and the organisation.
3. Legal Mandate Compliance
In some nations, businesses are required to offer health insurance. For instance, as stated in the Affordable Care Act (ACA), when an American company has 50 full-time employees or more, they must provide health insurance to the employees or bear penalties. It is one more way to make businesses easily comply with laws and build an image that is also grounded in the case of an employer that cares about its workforce. For example, a tech startup that has brought on board ACA-compliant health insurance and, therefore, retained some of the best talent while also positively influencing brand perception.
Medical Insurance’s Importance
See mind-boggling statistics to demonstrate the trend toward emphasising Medical Health Insurance in today’s world.
- Prioritisation as it comes to health benefits among employees: Varying ages have a difference in the value they put on certain employee benefits, according to the Employee Benefit Research Institute (EBRI) survey. For instance, workers aged 50-64 place a high premium on health-related benefits.
- Effect of well-being programs on absenteeism: According to a report from the Society for Human Resource Management (SHRM), companies that provide health-improvement programs are more likely to report an overall reduction in absenteeism. At least 64% of companies provide incentives to participate in these types of programs.
Challenges and How to Overcome Them
Along with benefits, insurance holders need to be aware of the challenges that they could come across. Here are some of the challenges:
- Cost Concerns
Lack of funding often leads to many start-ups neglecting medical coverage. However, various other factors account for this. Group health plan schemes help people afford and maintain their health policy.
- Lack of Awareness
Medical insurance is an employee benefit besides being a huge advantage even for employers. Most start-ups fail to realize this fact and do not know the different options available in the market. Many customizable plans are quite inexpensive, and start-ups can choose from them.
Takeaway
Health insurance is one of the major priorities considered by start-ups when creating a comprehensive benefit scheme that can continue to exist in the current situation. A company must take care of its staff for a long-term workforce. Choose from many policies and learn what would be the best for you.
