Work benefits are an important part of the employee compensation package, and health care benefits are the jewel in the crown, and they are the most important for employees, and every employer must consider at least whether they provide these types of benefits, and in some cases employers must provide health care from In order to maintain competition with other companies for the most talented employees, the other reason that drives employers to provide health care benefits is to obtain themselves less expensive health insurance as well as tax exemptions due to contributions made by the company.
There are a number of benefits in providing health care to your employees, and here are some of the main benefits:
Retaining and attracting the most qualified employees:
If healthcare is so essential to attracting and retaining the most qualified employees, it will depend on factors such as whether your competitors or company owners in your industry offer health insurance for their employees.
Reduces absenteeism from work:
The healthier employee is more present and productive, and the healthier employees are physically, the less likely they are to be absent from work, says Katrina Ferlik, co-founder and chief medical officer at Health Prize Technologies, if the employee is keen on preventing disease Maintaining a healthy weight, you will surely not miss work much.
Providing health insurance can provide tax benefits for small businesses.For example, federal legislation in the United States passed in 2010 included a tax exemption for health care in small companies, and according to the White House website, tax exemptions can cover up to 35% of premiums. Health care for the employer, and this percentage increased to 50% in 2014, and to obtain this tax exemption, companies must have less than 25 full-time employees or 50 part-time employees, and the average annual wages paid by the employer must be less than 50 thousand dollars, and to pay half of the health coverage for his employees.
Raises job satisfaction:
Employees’ job satisfaction increases from saving more of their money and not having to pay out of their own money for their health care and other services, and they also feel that the employer cares about them.
Enhancing employee engagement at work:
Anything that an employer can do to improve the morale of its employees – and of course provide health care a part of it – makes the employee feel more positive about his work and the employer, and that drives employees to engage more in work-related activities.
As an employer, you can benefit directly from a range of health coverage, and you and your family can choose to participate in health care, it can be very difficult to obtain individual coverage, especially if you have not suffered from any health conditions before, because groups allow insurance companies The risks are distributed among a number of individuals instead of one person, so group coverage is easier to obtain, and health insurance premiums are usually much lower in group health coverage than individual coverage.
Despite the advantages of providing health care to employees, there are some disadvantages that companies find in providing health insurance for their employees, such as:
The cost of health insurance increases annually, which forces companies to find more liquidity in their budget to absorb the cost, and if the company cannot bear the increase in insurance premiums, it will be forced to search for new health insurance packages, which will not only take a long time but also consume more Time to switch to the new insurance package.
Although the insurance company from which you buy the health insurance will usually be responsible for the health insurance plan, the employer will have to choose the insurance company, and then spend part of the time to fill out the forms, transfer the insurance premiums, and act as an intermediary between the employee and the insurance company.