Employee satisfaction with health insurance benefits is more important than it seems. According to a survey conducted by America’s Health Insurance Plans (AHIP), 56% of U.S. adults with employer-sponsored health benefits reported that whether or not they like their healthcare coverage is a critical factor in their decision to stay with a company.
Organizations concerned about their ability to attract and retain high-value employees should consider prioritizing employee satisfaction with health insurance benefits.
The Importance of Employee Satisfaction with Health Insurance Benefits
Providing quality, affordable healthcare is a necessity for modern workforces and fortunately, many employees are satisfied with their current offerings. A poll commissioned from Seven Letter Insight found that 87% of respondents found their plans affordable, and 54% said they were “highly satisfied.”
In addition, more than 70% of respondents agreed that their health insurance was worth the cost. Health insurance is often ranked higher than other highly valued benefits, such as sick leave, paid vacation, and retirement savings plans.
Benefits of Offering Comprehensive Health Insurance
While healthcare benefits are generally optional for smaller organizations, they are of critical importance to most employees. Health insurance remains one of the most sought-after benefits, meaning companies must offer comprehensive health insurance to remain competitive.
There are also other reasons why employers choose to offer health insurance, including so they themselves can take advantage of a more affordable policy than they could get on their own. Employers can also take advantage of tax breaks for any contributions to health insurance made by the business.
Some other key benefits of offering comprehensive health insurance to employees include the following:
Employee Retention and Recruitment
Companies that offer employer-sponsored health insurance often experience better employee retention and recruitment. According to 2022 QuickBooks data, almost half of small business owners revealed that hiring skilled workers is becoming more challenging.
Modern employees expect appealing benefits when choosing a company to work for, and health insurance is a major element of any comprehensive benefits package. Companies that wish to remain competitive must offer a quality, affordable health insurance plan.
Improved Employee Health and Productivity
Employer-sponsored health plans offer preventative care services designed to help keep employees healthy and happy. According to the Centers for Disease and Prevention (CDC), healthier employees are less likely to call in sick or use their vacation time for an illness.
In addition, organizations that support employee health have a larger number of employees at work each day. In turn, companies can save money by keeping employee absenteeism low, reducing overtime needed to cover absent workers and minimizing the costs involved in training replacement employees.
Strengthen Your Company Culture
Workplace culture can have a significant impact not only on employee performance in the workplace but also on employees’ health and well-being in and out of the office. It can affect attendance, productivity levels, and overall job satisfaction. Workplace culture also influences how long an employee remains with their current employer.
There is no denying the benefit of maintaining a good work-life balance. Employers that strengthen their company culture can help employees achieve a healthy work-life balance that improves their mental, physical, financial, spiritual, and emotional health.
Strategies for Improving Employee Satisfaction with Health Benefits
Everyone in the workplace can benefit from a well-researched and planned benefits strategy, especially employees. Companies need to remember that a business is only as good as its workforce. Employee satisfaction is a factor in many elements of business, from worker motivation and goal achievement to customer satisfaction and cost savings.
Many organizations are finding that positive job satisfaction helps increase employee engagement and can bring countless advantages to company culture and profitability.
Some strategies for improving employee satisfaction with health benefits include the following:
Leveraging Technology for Better Access to Health Benefits
Modern technology can provide employers with considerable value in the workplace. Busy workplaces make it difficult to share important benefits information with employees, especially when some employees work remotely or in different locations. Emerging technologies, such as telemedicine, have made it possible for employees to access their health benefits from any location.
Many employers now offer online platforms where employees can securely access information and resources designed to improve their well-being. These online platforms can be accessed from any device, allowing workers to utilize these tools on their own schedule.
Encourage Employee Wellness Programs and Preventative Care
It can be difficult to motivate employees to participate in wellness programs, especially when the advantages of these programs are unknown to workers. It is important to promote employee wellness programs and preventative care in a way that appeals to a modern workforce, such as with incentives.
Employee wellness program incentives can range from more practical health incentives like rewards for weight loss to personal incentives like extra vacation time. Valuable wellness prizes are likely to motivate employees to participate and become healthier.
Offer Flexible and Personalized Employee Benefit Options
Over the last decade, many organizations have shifted from traditional employee benefits to a newer model that involves flexible, personalized benefit options. Personalized employee benefits focus on an employee’s individual wants and needs, rather than benefits that appeal to the workforce as a whole.
According to PeopleKeep, 50% of employers feel that their employees have a say in the benefits that the company offers. However, just 36% of employees report that they feel like they have a say. Offering flexible and personalized employee benefits options provides workers with more freedom to use their benefits the way they want.
Improve Employee Education on Benefits and Wellness Programs
Employers need to understand how best to communicate current benefit offerings to employees so that they are educated when making decisions regarding participation and use of benefits. Help employees understand the different plans available to them and communicate the critical role that benefits play in their overall health and well-being.
Many organizations only talk about benefit offerings during the open enrollment period, and while this is important, benefits should be communicated throughout the year. Provide employees with educational tools and information so that they can stay informed year-round to improve purchasing decisions.
Measuring Employee Satisfaction
Implementing strategies to improve employee satisfaction with health insurance benefits is only effective if companies are equipped to measure satisfaction. There are several ways that organizations can measure employee satisfaction, including the following:
Conduct Surveys – One of the most effective methods for measuring employee satisfaction is surveys. Develop a list of 10 to 20 questions about how employees feel about particular health benefits and wellness programs. Allow employees the opportunity to complete these surveys anonymously to increase truthful answers.- Absenteeism Rate – How often employees are absent can help employers measure overall satisfaction. Excessive absenteeism in the workplace can indicate a range of problems, such as poor working conditions, inadequate leadership or a lack of proper work-life balance.
- Employee Turnover Rate – In addition to absenteeism, businesses should closely track employee turnover rates. There is a direct link between job satisfaction and employee turnover, as employees are more likely to leave their job when they are unhappy at work.
Reach Out to New City and Improve Your Employee Satisfaction with Their Benefits Plans
Need assistance improving employee satisfaction within your organization? Trust our experienced benefits consultants to help you build a customized benefits plan. Get started today by requesting a consultation or by calling 888.210.2765.