Despite many businesses making cash savings wherever they can, a growing number are still choosing to invest in private medical insurance for their employees. Many organizations are realizing the long-term benefits and savings which staff health insurance can bring them.
This article looks at the advantages of investing in private healthcare insurance and the benefits it could bring your business.
According to research spending on employee healthcare benefits, in the form of health cash plans, increased by 180% between 2008 and 2009.
The annual survey, conducted by Employee Benefits magazine reveals that 14% of companies across the UK now offer a company-paid healthcare scheme.
It is SMEs that are the most proactive, with over a quarter (27%) of companies that employ less than 100 people now implementing a health cash plan, whilst just 17% of companies with between 100 and 500 employees and 3% of businesses with between 501 and 1,000 employees offering this initiative. This trend looks set to continue as 22% of employers confirmed they plan to increase the healthcare benefits that they offer within the next 12 months to help employees look after their health and well being in these times of need.
Commenting on the research, Debbie Lovewell, Deputy Editor of Employee Benefits magazine said: "Despite the difficult economic conditions, many employers are committed to employee health and well being. This is essential if they are to retain the talent and skills necessary to weather the recession and emerge with a strong business on the other side." If you don't already offer healthcare insurance to your employees, here are a few reasons you might want to start:
Reduced absences Offering private healthcare insurance to staff is likely to significantly reduce the length and frequency of staff absences. This is because with private health insurance, staff needing treatment will receive it more quickly than they would on the NHS and are likely to recover faster and require less time of work. Additionally, fast action reduces the risk of recurring problems.
Improved morale: Staff who feel that their employer cares about them and their well-being are more likely to feel valued at work and therefore be more productive and committed.
Staff retention: Offering private health plans for employees could help you attract talented staff and, just as importantly, retain them. Research has shown that, after pensions, workplace health benefits such as private medical insurance are most important to staff. Over half of those that responded in a survey said they would be more likely to accept a job which offered a private healthcare plan over one that didn't.
Savings Investing in private health insurance for staff could save your company significant amounts of money in the long run. For example, private medical insurance will save money on sick pay, absence cover and recruitment costs.
The number of employers offering private healthcare insurance for staff is on the increase and for good reason - it can save businesses money, as well as improve staff morale and productivity.
Author S Cornish - Patient Choice
Patient Choice is a medical organization providing cost-effective private medical insurance for individuals and business in the UK.
For more information visit the Patient Choice website
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