Hungry to know how to keep your best employees?
No, it’s not free drinks or a foosball table. As every business owner can attest, turnover can be the quickest way to send a company into the ground. Recruit new talent, pay for all that new training and then realize the productivity drop makes things even worse.
Don’t stress…
There’s one surefire way to keep your employees happy and loyal to you. It also happens to be the least “fun” one to hear about: health insurance.
In this article you’ll learn…
- Why health insurance is more important than ping pong tables or avocado toast
- How health insurance affects retention and churn
- The competitive advantages of large group plans
- What employees want from their health insurance provider
Let’s dive in…
Why Health Insurance Is Number 1 On The Retention Food Chain
Health insurance isn’t some new-fangled perk you can skip and move on. Employee satisfaction heavily revolves around healthcare and it’s the #2 factors (after salary) people use when ranking their jobs.
In fact, we’re talking 92% of your employees. Literally, almost every employee at your company cares about their health insurance benefits. It’s not an exaggeration, either.
So why is this the case? Mainly because modern employees have expectations of their benefits that few employers can afford to ignore.
Invest in quality large group health insurance solutions and your employees will be happier and more productive than those who choose cheaper, stingier coverage options.
Here’s how that works…
If a competitor has better health coverage than you do, where do you think your best employees are going?
The Benefits Retention Relationship You’re Missing
Check out the results…
Offer comprehensive health benefits and employee turnover can drop by 26%. This is a staggering number when you factor in how many employees would leave for other opportunities without benefits.
Yet even more noteworthy? 56% of adults with employer-sponsored insurance believe their coverage is a key reason they choose to remain at their job.
Without quality large group health insurance, you’re selling your retention chances short.
But it’s not enough to have any health insurance. Your employees want good health insurance. Quality large group health insurance is more comprehensive, has lower out-of-pocket costs and typically offers a more generous provider network than small group plans.
What Happens When Benefits Let You Down
Statistics will shock you…
Approximately half of employees are considering new jobs within the next 12 months. The reasons? Confusion over health insurance benefits and dissatisfaction with what’s offered.
Your employees may not jump ship right away. But do you really want a large portion of your workforce considering other options because they’re confused about coverage?
The issue isn’t always poor benefits. Employees are just as likely to respond negatively to these other retention factors:
- Spotty communication about available benefits
- Complex plan designs that are difficult to understand
- Deductibles that eat up all your budgeted funds
- Provider networks that don’t include their doctors
Any of the above will push employees away. Make your benefits, and specifically your health insurance, so employees clearly understand and have no complaints about what you provide.
Large Group v. Small Group Health Insurance: Why Size Matters
Large group health insurance stands out for reasons that directly benefit retention.
- Coverage Options: Large group plans offer wider, more comprehensive coverage. This is because risk is spread across more employees. Broad coverage means lower premiums for similar levels of protection when compared to small group health insurance plans.
- Predictability of Costs: Costs for large group health insurance are much more predictable year over year. Employers can budget better and plan ahead, and this helps provide more stable benefits for employees.
- Better Provider Networks: Large group health insurance also has better provider networks. The networks are larger because the risk pool is, too. Your employees will appreciate having more options when it comes to their care.
It’s all about providing excellent health benefits. The great news is that large group health insurance can provide those benefits better than small group health insurance plans.
What Employees Want From Your Coverage
According to one survey, 68% of employees say their health insurance is the most important factor to staying with their company.
Why is health insurance so important?
Your employees are looking for health insurance that:
- Actually covers their care
- Has providers in the network they want to see
- Has benefits that they understand and can use
- Provides coverage to family members, not just employees
- Covers preventative care without large deductibles
Really not that hard, is it?
The Cost Of Losing Employees Versus The Cost Of Keeping Them
Turnover is expensive…
Replacement costs for a typical employee range from 50% to 200% of that person’s annual salary. This includes employee benefits:
- Recruiting and advertising job openings
- Interviewing and evaluating new hires
- Training, onboarding, and administrative costs
- Loss of productivity from an unfilled position
- The productivity hit from an employee who’s not quite up to speed
- The negative impact on company culture
Compare these costs to upgrading your large group health insurance plan and the answer is clear. Increase your premium budget to upgrade coverage and the likely retention improvement you’ll see is worth it.
The Switch To Large Group Coverage
When you have 50 or more employees, you’re in large group health insurance territory. But the real question is: should you?
Here’s a brief look at the decision…
- Cost: Large group plans cost less per employee since risk is pooled over many people.
- Plan Options: You’ll have access to a variety of plans and you can pick one that’s more customized to your workforce.
- Administration: Administrative support is typically better and you’ll have more technology and support available to help employees understand and use their benefits.
Changing to a large group plan can feel like a daunting decision. But when the retention improvement justifies the cost and complexity, the investment in large group health insurance is a wise one.
Crafting A Large Group Health Insurance Strategy For Retention
Large group health insurance is a start but there’s more to do. You also need to make sure employees understand and appreciate the coverage you provide.
Here are some ways to do that…
- Improve your communication around open enrollment and benefits periods
- Provide education to show employees how to use benefits
- Offer assistance for employees with questions or concerns
- Be flexible enough to change coverage as employee needs shift
Retaining employees requires a mix of the right investments and intelligent management of existing benefits. Don’t give up on large group health insurance. Rather, craft it and market it as an excellent option to help with retention.
Final Thoughts: Benefits Matter (A Lot)
Retention is the sum of many decisions a business makes.
Choices about how you provide health insurance are some of the most impactful retention factors. Quality health coverage makes employees far more likely to remain with you long-term.
That’s because quality health insurance gives employees the reassurance they need to focus on their jobs. Good large group health insurance allows your employees to access quality care without fear of financial ruin.
It’s a basic employee benefit that’s become one of the most important perks in the modern workplace.
Look at your current health insurance package. Is it competitive or not? Is it truly what your employees want? Or are you stuck in the ways of old health insurance models that drive away talent?
The choice to make large group health insurance a big part of your retention game plan is one of the best decisions you can make for your business.
