Insurance is often misunderstood. When you have a business and offer insurance to your employees, being able to show them why insurance matters and what benefits they are really getting when they sign up is important. The more you understand about insurance, the more easily you can explain it to your employees in ways they are comfortable with. Thus, allowing them to make informed choices about the plan that most meets their needs.
Transferring Risk Away From the Employee
The biggest benefit to your employees when they have insurance is that risk is transferred away from them. They no longer have to pay for huge medical bills if something happens to them, like an accident or an illness, because the insurance company will be sharing the cost. While insurance does not cover everything an employee might need to spend, employees can save themselves from financial ruin at the hands of medical bills if they are positioned correctly. That is a big benefit they receive when they work with an employer who offers good insurance options.
As an employer, you can show your employees that you care by offering them good, quality insurance. There are only so many options open to employers, but picking the best plans and educating them on how to use the plan demonstrates to your employees that they matter. You will be taking some of the risk off of the employee and putting it in the hands of the insurance company, and when you can convey this message and value of that to your employees they will better understand why they should consider getting insurance through the company.
Employees Feel More Valued When They Are Offered Insurance
Employees who are offered insurance feel valued by their company more than employees who do not get any kind of insurance benefits. Because the employee and the employer both have to pay into the cost of the insurance, employees see that the company they work for is investing in them. Companies that offer insurance are saying to their employees that they are worth keeping, and that their health and safety matters. By providing this understanding of value to your employees, you show them they are important and they mean something to the company they work for. That can affect loyalty and performance.
Having Good Insurance Plans Can Mean Better Employment Candidates
An important benefit employers get when they offer good health insurance options is a better pool of job candidates to choose from. People who are looking for employment often want more than just a paycheck, and if they see that they can get good insurance through one company but not through another company that is comparable in pay and job duties, most of them will choose the company where they can receive insurance benefits. Having insurance is about more than just keeping employees from going broke if they are injured or sick. It is also about acquiring and retaining the best employees for the job at hand.
It’s Easier to Pick From a Few, Company-Provided Options
Self-employed people often struggle with how and where to choose an insurance plan. For company employees, though, that struggle is avoided. There are just a few options offered, and employees can pick the ones that work best for them. That eliminates the possibility of having too many choices, and the decision fatigue that can come along with it. In short, it helps employees make better choices, because too many choices generally leads people to pick something that actually is not right for them. By limiting employee choices for insurance, you are doing them a favor and making things much easier for them, overall.
Insurance Can Motivate Employees to Work Harder
Giving bonuses and other incentives, along with the idea that they will be protected by insurance if the company keeps them on after their probationary period is up, can encourage employees to work harder. They want to do more for a company that treats them right, and that cares about them and their lives. That is good news for any company that offers insurance, because happy, productive employees are so important to the proper running of any company. Without good employees, many companies are left struggling. Sometimes as simple as providing insurance can change motivation levels and improve the bottom line.
Good Insurance Means Employees May Remain On the Job Longer
When employees have good insurance through their employer, they may stay on the job longer. Leaving their job means they will lose their insurance, and if they choose to keep it through COBRA the price often rises drastically. If changing jobs, they may not be covered by the other company for a while, or the other company they are considering may not have as good of an insurance plan. In some cases, the other company may not have an insurance plan at all. This can make a significant difference in how long a person chooses to work for a company, and if they stay even if other opportunities are available.
The Bottom Line on Insurance
Because insurance is a transfer of risk from the employee to the insurance company, it helps to protect the employee financially. Additionally, employees feel much more valued and important to the company if they are offered insurance, which can influence them to stay with the company longer and work harder than they otherwise would. Good insurance plans can also bring in other employees who are dedicated and talented, and their lives are made easier by not having too many insurance options. When insurance is handled the right way, it is a winning situation for both the employees and their employer.