Health Insurance Helps Employers Attract and Retain Employees

June 8, 2016by Alex Strautman

Health Insurance Helps Employers Attract and Retain Employees

  Facing an increasingly competitive job market, many employers are relying on health benefits as a recruitment and retention tool, according to 2015 research by the Society for Human Resource Management (SHRM). More than ever before, a good health insurance offering is a vital tool for hiring. The HR association’s study found employers are leaning on a range of employee benefits to help them woo current and prospective employees.

The SHRM survey results showed the vast majority (96 percent) of organizations offer health care insurance. On average, respondents said their organizations are paying 76 percent of employees’ total health care costs. Forty-six percent said their organizations increased the employee share of health costs over the prior year.

Using Employee Benefits as a Retention Tool

Of 460 human resources professionals taking part in the 2015 survey, 38 percent said their organization had leveraged their benefits – ranging from paid leave to wellness programs – to recruit employees. One-third (33 percent) said in the past year they had used benefits to keep employees from leaving their companies. That was nearly double from the 18 percent who said they used benefits as a retention tool in a 2012 survey.“While the competition for talented workers has heated up, there has been little change in base salaries. So HR has strategically turned to benefits to attract – and keep – skilled professionals,” said Evren Esen, director of SHRM’s survey programs. “From unlimited vacation to unusual perks such as electric car charging stations, companies are using benefits to set themselves apart from the competition.” The Kaiser Family Foundation says that, nationwide, nearly half (49 percent) of Americans get their health insurance through their workplace. In some states, the percentage is even higher – it’s 50 percent or more in 28 states.

In California, it was 46 percent in 2014, the latest year for which data has been reported. As small group employers look for ways to reduce costs, many are considering a move to a private health exchange, which offers a way for them to control their costs, while still offering employee choice. The CaliforniaChoice private exchange offers businesses with up to 100 employees great health insurance options plus discount dental, vision, and hearing, a free Premium Only Plan, access to HRAnswerLink, Cal Perks employee discounts to movies, theme and water parks, sporting events, hotels, car rentals, and more – all of which can help you retain your existing employees and attract new ones. Contact a CaliforniaChoice broker to find out if a private health exchange makes sense for your company and to learn more about the no-cost CaliforniaChoice Business Solutions Suite.

Shopping for group health insurance?

This guide compiles a list of common questions you may have before you start offering health insurance coverage.