Health insurance is a benefit that many people seek when they are looking for a job, especially as waiting times for NHS treatment increase. Corporate health insurance can provide private healthcare as an option which might not otherwise be available to employees.
It is beneficial to business owners to keep their staff happy and healthy and while duvet days, gym membership and a generous holiday allowance can help, health insurance is an advantage which gives a competitive edge in an employee benefits package. Small businesses might not be able to compete with large corporations on salary, but they can provide attractive benefits.
In a small business there often fewer people to covering the necessary workload, so it is vital that small businesses see employee health as a priority.
There are many benefits for small businesses who offer corporate health insurance to their employees, including:
1. Securing the best talent
Private medical insurance is a must for many people when they are seeking employment. Some may be looking for a package where they can also add their family members to their policy.
It is normally advantageous for an employee to take private medical insurance through their employer as a benefit rather than ask for an equivalent pay rise which is taxed. In some cases, employees may also opt for private medical insurance rather than a salary increase.
A small business may be missing out on attracting more experienced employees to their vacancies if they do not offer private health care as a benefit.
2. Retaining employees
With many people looking for a new job each year, losing a staff member due to a lack of employee benefits can be especially costly for a small business. The cost of hiring and training new staff mounts up, especially if there is a high turnover of staff members.
By improving job satisfaction and by offering additional company perks, you can retain employees. Providing private health insurance as a company benefit displays dedication and commitment to employee health and well-being.
3. Increasing productivity
When running a small business, losing just one member of staff to illness makes a large impact on the team. By using their work health insurance, staff can schedule medical appointments around working hours which reduces their time spent away from work.
Employees using the NHS will often not be able to choose when, where and at what time they need to attend a hospital appointment which disrupts productivity.
Some staff members may also have conditions which, if treated promptly, will see them return to full health and productivity in a short space of time. Suffering from a chronic condition while waiting for NHS treatment can make staff less productive in the office and working whilst ill or injured can cause productivity loss and an increase in poor health and exhaustion – known as presenteeism.
4. A rewarding business investment
There is no doubt that offering private healthcare can be a considerable cost for small businesses. The more employees you cover, the less it costs to insure each person, so it can be hard to find a good deal if you only have a small team.
However, by viewing medical insurance staff as an investment and seeing the resulting increased productivity and avoidance of absenteeism and presenteeism, the decision becomes commercially viable.
What health insurance options are available for small businesses?
Private medical insurance can cost around £1,100 to insure an individual employee, however, small businesses can cut costs by selecting the amount of excess to pay. Alternatively, employees can pay the excess.
There are many insurers who aim to appeal to small businesses with various tailored healthcare policies.
Before making a decision on a company health insurance policy, note:
- The budget available for each individual employee
- The number of employees to be covered
- The medical treatments you wish to cover
- Any additional items you wish to include on the policy