A small majority of Americans get health insurance through their employers. Health insurance is also far from the only kind of insurance an employer might offer.
Health insurance is a huge benefit for workers because it helps pay for some medical expenses, whether they’re work-related or not. It’s not just the employee who benefits from this practice, either. By agreeing to help pay medical bills, should they arise, the employer gives their employees an extra bit of security.
That’s just one benefit of offering medical insurance to employees. We’ll talk about the other benefits, and why you should offer insurance, in this article.
1. It Attracts More Employees
Employee benefits are a major factor when it comes to employment. Applicants consistently choose better benefits over higher pay, so not offering benefits puts you at a serious disadvantage when hiring.
The average American spends about $12.5 thousand per year. The average wage, meanwhile, is just under $52 thousand per year. In other words, roughly one-quarter of the average person’s yearly earnings go to medical care, and that’s assuming they don’t have more extensive medical needs or a lower-paying job.
2. It increases Job Satisfaction
Having more employees is a great thing, but it means nothing if you can’t keep any of them. Employee medical coverage also helps in this respect.
People who feel financially secure tend to be more satisfied with their jobs and their lives. In most cases, the absence of stress is as much a part of happiness as joy. Even something relatively minor like vision insurance can go a long way towards improving the morale of your employees.
On some level, an employee’s relationship with their boss works like any other relationship. As a rule, we want to surround ourselves with people who treat us well and offer a sense of security, in this case financial security.
3. It’s Affordable
Buying health insurance on your own can be expensive. However, the opposite is true for group insurance plans. Like any other product, insurance tends to cost less per unit when it’s bought in bulk.
Selling group insurance plans allows insurance companies to spread the risk. Spreading the risk occurs when an insurance company sells the same type of insurance to different people in different circumstances.
This works due to the laws of probability. If you sell long-term disability insurance to one person and they become disabled, you might be unable to pay their bills, and your company could be ruined. If you sell insurance to 100 people, there’s a higher chance one of them gets hurt, but you also have a lot more people paying in so you can be ready when that happens.
Medical Benefits and Why Every Company Should Offer Them
Offering health insurance and other medical benefits to employees can be a major win for companies. People often want greater safety or control in their lives, and they’ll be more productive if an employer can guarantee those things.
We’ve discussed some of the other benefits in this article, but there’s always more to learn. Please visit our site for more information and advice about insurance. We encourage you to contact us with any questions or concerns.