Under the Indian system, offering health insurance is not a mandatory stipulation by the Government of India. But increasingly, in our corporate systems, more and more companies offer health insurance as one of the benefits of an employee’s salary package. This is done so that businesses can:
- Attract the right type of talent
- Compete with the benefits offered by competitors in the market
Offering health insurance can be an expensive endeavor, here are a few factors you need to consider before putting health insurance on the table for your employees:
One size does not fit all: Just as you plan employee salaries according to their job role and position, it is important that you do the same when it comes to benefits such as health insurance. A benefit like health insurance will attract and help you retain a certain type of employee, therefore you need to be picky about who you offer it to.
This will allow you to maximize the benefits of how much you spend in order to offer health insurance. While in an ideal world, it would be great to offer all employees these benefits, in reality, you as a business owner need to make the right and most cost-effective decisions for your business. The amount of coverage, as well as the illnesses covered, could also be customized to reduce your premium rates.
The Cost: The cost of health insurance will depend largely on which institution or firm that you choose to patronize. As with all your business decisions, it is important to do your research before making the final decision. Talk to other business owners as well as insurance agents to figure out who offers the best benefits for the cost that you are willing to spend. Discuss what value can be added to each plan and the payment structure.
Last but not least, ensure that the institution is well regarded and does not put across too many restrictions when it comes to making a claim under the health plan.
Involve Your Employees: Taking on health insurance can be an expensive proposition for a small business to undertake. But as the business owner, it is not something you need to bear on your own. If you involve your employees you can share the basic plan you would be willing to cover and then offer them the option to contribute from their salaries to increase the cover of the insurance plan and the ailments it covers.
Involving your employees will also enable you to set expectations on what you are able to offer as an employer and allowing them to take the final decision on costs over and above that. Follow these simple steps and your business will be well on its way to offering health insurance to your employees without breaking the bank.