When it comes to attracting top-tier talent, it takes more than just offering an attractive salary. The benefits you provide your employees play a significant role in enticing the kind of talent you desire. Among these benefits, health insurance stands out as a particularly compelling factor. According to a 2018 Clutch Report survey of over 500 full-time employees, here are some insights:

1. 62% of companies offer health insurance to their employees.
2. 55% of employees consider health insurance the most valuable benefit.
3. Millennials (44%) value health insurance less than Generation X (62%) and Baby Boomers (62%).

The Significance of Employee Health Insurance

Providing health insurance to your employees sends a clear message that you care about their physical and mental well-being, recognizing them as more than just workers. This is especially relevant for employers with distributed teams. With today's abundant information resources and technological accessibility, there's no excuse for not offering health insurance to your remote employees.

You might wonder, "Why do I need to provide health insurance if I already pay for mandatory health insurance as required by the country's regulations? Isn't that sufficient?" Many countries have mandatory health insurance systems, allowing local employees to access healthcare services. However, since the local healthcare system is public and accessible to all, it may result in issues regarding the quality of care and preferential treatment. Many employers opt for their own health insurance providers to ensure quality, priority, ease, and efficiency.

The Advantages of Employee Health Insurance

Health insurance premiums can be costly, and with the recent rise in premiums, employers are becoming increasingly concerned about the financial burden. You might be asking, "Is it worth it?" Before making a decision, consider the following advantages of offering health insurance to your employees:

• Attract and retain top talent: It's not just about the job description and salary when employees choose their next position. The benefits you provide can give your company an edge over the competition. In a 2018 survey by America's Health Insurance Plan (AHIP):

1. 46% of respondents indicated that employer-provided health insurance influenced their decision to join a company
2. 56% considered coverage a key factor in their decision to stay with their current employer.
3. 71% expressed satisfaction with their employer-provided health coverage.Employer contributions to health coverage significantly improved the employer's favorability (77%).
4. 68% of employees prioritize physical health over financial health.

• Reduced operating costs: Many employees are willing to accept a lower base salary in exchange for attractive benefits like health insurance. In many countries, personal health insurance can be significantly more expensive than employer-provided coverage. According to the AHIP survey, 31% of employees value employers for making healthcare affordable. It's essential to negotiate these terms with potential employees before hiring them.
• Tax advantages: Health insurance is often tax-deductible in many countries. Some companies offer slightly lower base salaries to reduce payroll taxes while making up for it with untaxed health insurance premiums.
• Lower insurance costs: Group insurance plans, even for small to medium-sized enterprises, can secure better pricing compared to individual plans. This benefits both the employer, who pays less, and the employee, who saves on expensive individual health insurance costs. A 2018 study by eHealth found that small business health plans had:

1. A 7% lower average premium per person compared to individual health insurance plans.
2. A 31% lower average individual deductible compared to individual health insurance coverage.

• Increased productivity and morale: Healthy employees tend to be happier and more productive. A 2020 study by MetLife revealed that 60% of employers observed higher productivity levels as a result of offering health insurance. The Centers for Disease Control and Prevention (CDC) also noted that employees who prioritize preventive care tend to be more productive at work.

Getting Started

While the benefits of health insurance are undeniable, there are challenges that employers may face, including increased costs and the task of selecting a reliable healthcare provider. This can be particularly daunting for employers with distributed teams, as they must find local or international providers to cover employees worldwide. Additionally, the administrative burden of paperwork and premium remittance can be overwhelming.

However, there is a straightforward solution: Professional Employer Organizations (PEOs). PEOs take care of everything, from selecting a reputable healthcare provider to managing administrative tasks. This allows employers to focus on building their businesses while leaving the team's well-being in capable hands.

When you hire a PEO, you opt in and pay for coverage under the PEO's policy, in addition to carrying your own insurance. The PEO ensures that all insurance regulations, including healthcare mandates, are adhered to, and your employees' health insurance is provided by the PEO on your behalf. With established networks of trusted healthcare providers and seamless handling of necessary paperwork, PEOs simplify the process for employers.

In the words of British magnate and entrepreneur Richard Branson, "Take care of your employees, and they will take care of your business." While health insurance may represent a substantial investment, consider it an investment in your people that pays off in terms of productivity, loyalty, and trust.