Managing employee retention requires some strategic thinking and actions to ensure that the staff remains committed to their job responsibility and the company. Employee retention is one of the most powerful and most overlooked facets of running a successful company.
While the majority of managers believe that workers are most likely to leave a role due to dissatisfying salary growth. But the reality is that many factors can contribute to employee turnover, including lack of active management, growth opportunities, and appreciation, alongside being overburden and especially no or less monetary growth in every appraisal cycle. There is another important aspect that most employees sought, and that is health insurance. One of the main factors of employee retainment is health insurance! Yes! The simple fact that health care is expensive in a country like India is also the best strategy for employee retention!
Why people stay with a company?
Excluding the apparent reward and recognition reasons, below are the few essential points you never thought would motivate the staff to be with the company and keep stable:
1. Positive Conductive and secured work environment:
Employees who have settled in their jobs find it harder to leave, as they have developed a web of fulfilling and positive networks and relationships. Moving to a new employer can mean having to reinstate these connections, often setting an individual back months or even years. However, when a sense of fear and insecurity, primarily related to health develop, employees wouldn’t think twice to jump into companies that offer the best healthcare solutions.
2. Employee benefits package:
Healthcare benefits are the most important for people considering job offers. To boost retention, employers highlight retiree medical benefits and health care benefits as the most crucial reason for employees to stay with an organization. There are many schemes where the employees think before deciding to leave the current company as they wouldn’t want to lose out on their Pension scheme, Gratuity, PF, Double PF deduction, Company discounts, Home loan discount, and most importantly “family-floating-health insurance.”
3. Company culture and Image:
Employee turnover is costly. If you continually hire staff that doesn’t fit the lifestyle you want, you’ll quickly find those who will leave for places that better value them. Attracting and retaining people with your company environment will reinforce to your current workforce your commitment to assessing employees by ensuring like-minded individuals surround them. Making an employee feel secure, happy and satisfied is the key to a successful business. While the latter is in the hands of the employee, at least making him feel safe by offering healthcare benefits is very much in the hands of the company.
4. Open door culture facilitating open communication:
Confidence grows significantly when team members feel free to express their minds, share their thoughts, address disputes, and other objections, and participate in the company’s evolution. A trustworthy factor implies between the Employee and Employer which make employees confident enough to work with the organisation. The new age HR managers are brilliantly tackling this. The HR team has an open conversation with the employees on a regular basis probably monthly or quarterly to read the minds of the employees and gradually introduce an additional healthcare benefit in sync with the employees’ expectations.
Smart Healthcare benefits by Employers
When an employer decides on offering healthcare benefits, it is interesting to consider the following factors that may impact the need for providing these benefits. Remember cost is only half of the return on investment formula, so don’t forget to calculate the benefits and positive impacts.
1. Healthy workers are more productive and active:
Even if the corporation doesn’t consider the necessity of health care benefits for its employees, with the availability of precautionary health care benefits, the workers will be less absent because of their own or their family’s health issues.
2. Lower-paid workers likely care more:
Hourly, lower-paid and non-union workers are often more likely to be concerned about healthcare benefits. Their low incomes will make health coverage an essential issue because of the high cost of health benefits when purchased individually and also because they view health care benefits to be “better” unlike an increased hourly wage, health benefits are generally not taxed.
3. Health care matters to employees with families
If top workers have families, the importance of health care benefits may exceed the essence of whatever employer pays. If the company is hiring from distinct ethical groups, statistically there is a higher chance that the employees will have larger families, and the impact in these cases will be higher.
4. Health care matters to sick individuals
If a significant percentage of your employees currently have substantial healthcare problems or if their family member is ill and if your company does not offer health care benefits, they may be quickly drawn away to other firms that provide healthcare benefits.
Not furnishing healthcare benefits to agents may result in a two-class workforce. It will be impossible to justify to workers why the organisation can’t provide equal benefits to all the employees as the employees that are paid relatively less begin to view themselves as second-class citizens that do not deserve similar healthcare benefits in par with other managers and executives. If this diversion in workforce occurs, it will have significant implications throughout the business.
Offering the right healthcare benefits package can help employees save time and money, leading to reduced stress and increased productivity. This enhances the scope for employee retention in the workplace. Therefore, one of the best no-fail strategies for employee retention is “smart and additional health care benefits.”