Health benefits are no longer just a perk—they’re a necessity for attracting and retaining top talent.
A well-designed health plan keeps your workforce healthier, more engaged, more loyal, and more productive. It can make the difference between hiring or retaining that proven superstar performer or losing her to a competitor.
The fact is, that quality workers now demand competitive benefits. And if you don’t offer them, your best performers will go to another employer who does.
And you can’t really blame them!
This blog post discusses seven of the top reasons why you need to offer solid, competitive health benefits to your employees and their families:
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1. Health Benefits Drive Employee Job Decisions
Health insurance is a top priority for job seekers.
In fact, 80% of employees consider health benefits a critical factor when deciding whether to accept a job offer or stay at their current job. Another 78% say a strong benefits package is very or extremely important in their decision-making.
According to an article by Harvard Business Review, 80% of employees would choose additional benefits over a pay raise.
A strong benefits package can distinguish your organization in a competitive job market, making it highly appealing to potential hires. Research indicates that 78% of job seekers consider an employer’s benefits package to be a very or extremely important factor when evaluating a position.
By prioritizing comprehensive health coverage, businesses can gain a competitive edge in attracting top talent.
2. Health Benefits Improve Employee Retention
Losing a valued employee is expensive, both financially and operationally. COmpanies offering competitive health benefits see 27% lower turnover rates, according to data from The Predictive Index.
A study conducted by Gallup shows that 58% of employees rate better benefits as very important in deciding whether to switch jobs.
In addition, 60% of employees say health benefits increase their loyalty to their employer. Businesses that invest in employee health keep high-performing employees longer—70% of top talent cite health benefits as a key reason for staying.
Providing a quality health plan also improves employee morale, which directly impacts loyalty. Happy, healthy employees are more likely to develop long-term relationships with their employers and become advocates for the company. This not only reduces turnover but strengthens your organization’s reputation.
3. Offering Health Benefits Enhances Recruitment
Businesses offering health benefits have a clear competitive advantage. A recent study from the Society for Human Resource Management found that 90% of people surveyed believed a health plan is a “very important” or “extremely important” employee benefit.
Companies that offer health plans fill job openings faster because job seekers strongly value a robust benefits package when considering a new job.
By providing health sharing or traditional health insurance, your business can boost your employer brand, differentiate yourself from competing employers, and better attract top-tier candidates.
4. Health Benefits Boost Employee Engagement
Employee engagement is directly tied to workplace satisfaction. Employees with access to health benefits are more likely to be highly engaged at work.
Data strongly suggests that engaged employees are more productive. Gallup research shows that organizations with engaged and satisfied employees achieve 21% higher productivity compared to those with lower engagement levels.
A well-designed health plan helps your team afford preventive care. This helps them stay healthier, and reduces the risk of chronic illnesses developing into a full-blown (and expensive) health crisis.
5. Health Benefits Increase Productivity
Healthy employees are productive employees.
Gallup also found that businesses that offer health benefits report a 17% increase in productivity. Health coverage reduces health-related distractions, allowing employees to focus on their tasks. Preventive care also helps manage chronic illnesses like diabetes, heart disease, high blood pressure, and obesity, which cost businesses billions of dollars each year.
For example, according to the Centers for Disease Control, diabetes alone cost more than $400 billion in medical costs and lost productivity. Employers bear a huge portion of that cost burden in the form of presenteeism, absenteeism, and higher health plan utilization.
Furthermore, SHRM data shows that employees with health benefits take 3.9 fewer sick days annually. Teams with access to health plans also show a 13% improvement in collective performance metrics.
Whether you choose a traditional group health insurance plan, a low-cost health savings plan, or some combination of the two, investing in your employees’ health helps promote better workforce output, efficiency, and profitability.
Learn More: Advanced Healthcare Strategies for Applicable Large Employers
6. Health Benefits Reduce Absenteeism
Absenteeism costs businesses tens of billions of dollars annually.
The Centers for Disease Control and Prevention (CDC) report that these costs can range from $2 billion to more than $81 billion a year in the U.S., depending on the condition. This shows how important it is for businesses to offer good health benefits to keep employees healthy and reduce costs.
Employees with health coverage take less sick days per year. Consistent access to healthcare enables better health management, which reduces illness-related absences. A healthy team ensures workplace continuity and project success.
Offering health benefits can significantly reduce these costs. A study published by Labour Economics found that insured employees missed 54% fewer work days than uninsured employees.
Both conventional and health sharing plans often include access to telemedicine, which allows employees to address health concerns quickly without missing significant work time.
This flexibility makes it easier for employees to manage minor health issues before they become serious.
7. Health Benefits Combat Presenteeism
Presenteeism occurs when employees are physically at work but unable to perform due to untreated health issues.
And it costs American employers an estimated $1.5 trillion in lost productivity.
A well thought-out suite of health benefits helps employees address their health needs promptly, reducing presenteeism and improving productivity.
Businesses that offer health benefits have more engaged employees, as employees can better manage their health. With reduced health-related distractions, team members can focus on their goals, ensuring stronger overall performance.
Presenteeism is particularly problematic in workplaces where deadlines are tight or workloads are heavy. A solid health plan, including preventive care and wellness programs, keeps employees healthy and able to perform at their best.
Health Sharing: An Affordable Alternative to Traditional Insurance
While health benefits are essential, many small businesses worry about the cost. That’s where health sharing comes in.
Health sharing plans are a cost-effective alternative to traditional health insurance. They allow businesses to provide comprehensive coverage that is tailored to individuals needs at a more competitive rate.
Health sharing is not insurance. Instead, it pools resources among plan members to cover members’ medical expenses.
Businesses that embrace health sharing as a solution to their employee health benefits can save significantly on premiums while still offering valuable benefits that employees appreciate.
For small and mid-sized companies looking to compete with larger organizations, health sharing provides an affordable, competitive solution.
Health sharing plans often offer flexibility in coverage, making them ideal for diverse teams. Employers can provide essential care while keeping costs predictable and manageable.
Additionally, health sharing includes access to telemedicine, preventive care, and catastrophic coverage, ensuring employees receive the care they need without high premiums.
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The Bottom Line: Competitive Health Plans are a Must
These days, offering health benefits are no longer optional, even for small and medium-sized employers.
Employees value health coverage above other workplace benefits, including pay raises and retirement plans. Businesses that offer health benefits experience higher retention, increased productivity, and stronger recruitment efforts.
For businesses concerned about costs, health sharing provides an affordable, flexible option. It allows you to stay competitive without straining your budget. Offering a strong health plan isn’t just good for your employees—it’s good for your bottom line.
Contact Us Today
At HSA for America, we specialize in helping businesses of all sizes find affordable health coverage solutions. Contact us today for a free consultation.
Learn how you can offer competitive health benefits while saving money. Your employees deserve the best—and your business deserves to thrive!
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