The benefits of health insurance for small businesses
Health insurance can be an invaluable tool for small businesses in the UK. With the National Health Service (NHS) providing free healthcare, some small business owners may not see the need to invest in health insurance. However, with the NHS suffering extensively at the moment, it’s likely that private healthcare options would be a welcome benefit for many workers.
There are many benefits to providing health insurance for employees, benefits which will ultimately be highly positive for the business itself. If you’re on the fence about whether it’s a good idea or not, let’s go through some of the primary benefits of health insurance for small businesses in the UK.
Attract and retain employees
First off, health insurance is a great employment perk. Offering health insurance is an attractive benefit for potential employees, especially in such a competitive job market. This becomes even more important if you’re unable to offer highly competitive remuneration for the role – candidates will be looking at what else they stand to gain from being with your organisation.
It can set your business apart from other competitors in the niche, helping you to attract the very best talent. Ultimately, employees who are happy with their benefits are more likely to stay with the company long-term, reducing costs associated with hiring and firing.
Improve employee wellbeing
For your business to thrive, you need your employees to thrive – it’s as simple as that. By providing access to premium, private healthcare insurance, employees can receive faster, more personalised care for any non-emergency medical conditions that pop up. This can help prevent minor health issues from becoming major problems, reducing the risk of long-term absences due to ill health.
Some health insurance providers, like HealthPlan also provide access to helpful blog posts and other resources that increase overall well being, with the aim being that their client’s health remains good enough that they don’t need to seek medical attention – an absolute win for both parties. This approach can include providing access to a range of fitness classes, healthy-eating resources, and mental health support.
Reducing sick leave
No one likes being ill, but when it’s hard to get the right help, smaller health issues can quickly become unmanageable. When employees have easy, quick access to effective healthcare, they’re more likely to take care of their health needs, often meaning that they don’t have to take time off, or if they do need time away, enabling them to return to work quickly. Overall, this tends to improve productivity, as employees are able to focus more fully on their actual work, rather than their health issues.
Cost savings for the business
While investing in health insurance for employees may seem like an additional cost, it can actually result in cost savings for the organisation in question. For example, simply by reducing absenteeism, the business can see a rapid return on investment.
This is becoming increasingly relevant in the current day and age, with employees facing a number of significant stressors and – of course – the ongoing health effects of the pandemic.
Tax benefits
When it comes to the costs associated with providing healthcare for employees, it’s important to be aware that small businesses in the UK may be eligible for tax benefits. For example, the cost of providing health insurance can be tax-deductible as a business expense. Of course, it’s important to speak with an accountant or tax specialist to ensure that this is the case with your business, and to find out exactly how much you can save.
Boost employee morale
Providing private health insurance for your employees is a great way of boosting the overall sense of morale. It’s pretty simple – when employees feel valued and supported by their employer, they’re more likely to have a positive relationship with their workplace.
This in turn can boost productivity, and decrease turnover rates. Providing health insurance can demonstrate to employees that their employer cares about their general health, leading to an overall more positive work environment.
Complying with legal requirements
In the UK, employers have a wide range of different legal obligations when it comes to ensuring their employees’ health and safety. While health insurance is not a legal requirement in most industries, providing access to healthcare can help employers to prove that they’re exceeding their duty of care obligations, making it easier to demonstrate their commitment to employee wellbeing from a legal perspective
Choosing a health insurance provider
When considering different health insurance options for your small business, it’s important to do your research, and make sure that you choose a plan that meets your needs. Employers in certain industries may benefit from having specific care packages, for example, if their employees travel a lot around the world, a global healthcare plan would be a good option to look out for.
There are quite a few different health insurance providers in the UK, each with their own benefits. It’s important that you use a whole market insurance medical insurance broker, so that you can be sure that you’re not missing out on any potential options.
Once you’ve chosen the right provider, it’s important to communicate the value of the health insurance, both to your employees and to anyone who’s thinking about applying for a job at your company. You’re paying for the plan, so it’s important that your employees know how to make good use of it; ensure that they understand the benefits of the plan, and how to access the various resources available to them. This ensures that you’re benefiting from all the plan has to offer, from its value as a recruitment tool to the practical benefits it can provide to your employees.
Health insurance can be a truly valuable investment for many small businesses in the UK. By offering private healthcare, businesses can attract the top talent in the field, improve employee well-being, improve employee productivity, and likely see cost savings. When choosing a health insurance plan for your small business, it’s important to do your research well, to ensure that you choose a plan that’s perfect for your business’s specific needs.
