Why more businesses should consider offering their employees medical benefits

employees medical benefitsemployees medical benefits
employees medical benefitsemployees medical benefits


Why more businesses should consider offering their employees medical benefits

\With medical insurance playing such a critical role in employees’ lives, healthcare has become one of the most sought-after working benefits that individuals need and want. There are many South Africans who are unable to afford medical insurance on their own, which is why businesses which offer such benefits as part of their packages will always be one step ahead of their competitors.

Many businesses steer away from supporting their staff’s healthcare as they feel that it’s such a complex, costly expense for the business. While you don’t have to offer it, smaller businesses can really benefit from offering their employees this perk in the long-run. Not only will it retain existing employees but it will help attract new candidates to your business because you’re offering something different and special.

While other culture perks may be something that younger generations care more about, medical perks have quickly become the most important benefit for all ages of employees. This helps to support the basic health needs of employees, and it shows them that you care about their well-being. It also helps employees to stress less as they don’t have to worry about finding a way to pay for healthcare costs. Small changes like these can lead to increased employee productivity and morale.

Here are a few reasons why you should offer your employees healthcare benefits:


Increases competition: When businesses offer their employees health benefits, it gives them the opportunity to attract new, and retain existing, employees. This is especially true in corporate environments that may offer employees the same position opportunity, but the differentiating factor is medical insurance. You’ll be surprised at how many people will turn down jobs because of the benefit offerings.


Minimise your turnover rate: This goes hand-in-hand with employee retention. When companies are losing staff on a regular basis, it can dent the company image and backlog work because of low productivity. But, when you offer your employees various benefits that add value to their lives, you’ll soon see how many employees are willing to stick around because they know that you value them.

Reduced operating costs: Employees who have to support their own medical expenses are less reluctant to take home a lower salary because they know how expensive an individual health policy is. However, if you do end up giving your employees the option to cover those costs, businesses will be able to offer lower salaries in order to keep operating costs low.

Tax advantages: While many businesses turn down these offerings because of the complex admin and tax implications they think they might face, the truth is that businesses which do offer health benefits to their employees can deduct a portion of these costs to business expenses. This actually gives your business a tax advantage as the business owner's insurance and coverage will be deductible.

Lower insurance costs: There are many different bundles from providers such as African Unity Life, so you can choose what works best for your business. The great thing about business health insurance is that you can get much cheaper rates than what it would cost individuals for the same cover. The more people you have in a particular group, the cheaper it gets and the lower the insurance costs are. This type of benefit is advantageous for business owners as it gives employees the security and comfort in knowing that they are able to visit the doctor and get care without having to break the bank or struggle at home.

Improved productivity and morale: One of the key elements to business success is having a healthy workforce which is productive and happy. When you are positive and happy with your working environment, you naturally become more productive in your work. And, when your employees are off sick, without the finances to get treated sooner, you’ll constantly face a drop in work production. Financial stress plays a major role in many South African households, and knowing that the business is covering staff members will give them peace of mind. This alone will help them to become more focused and loyal.


Healthier employees: Many people say that healthy employees are happy, productive employees. However, when it comes to healthcare and medical expenses without benefit, these issues slowly take a strain on an employee's’ personal life. Good health comes with knowing that no matter what, you’ll be covered and supported. But when employees are constantly booking sick leave days to overcome these challenges, it will quickly cause a dip in the businesses bottom line. Don’t let your staff worry about things like these when you can afford to make life easier for everyone at your office.


Final words

In the initial stages, medical insurance policies for your staff will cut the cash flow somewhat, but in the long-run, these costs will contribute to your overall success. Your business will quickly start to become happy and healthy, pushing employees to work hard and succeed in everything they do. While employees will always struggle with financial challenges, helping them where you can give them great hope.

employees medical benefits