Make Your Company and Your Workforce Thrive By Offering Health Insurance to Dependents
If your company provides health coverage to employees but does not offer health insurance to dependents, you are doing your company and workforce a significant disservice. Extending coverage to your employees’ family members is one of the best things you can do to maximize the many upsides of providing health insurance benefits. Why? Because, to your employees, the health and well-being of their families matter. By giving your workers the impression that their families don’t likewise matter to your company, you are sending a powerful – and self-defeating – message.
On the other hand, extending group health insurance to your employee’s dependents makes it more likely that you will attract, retain, and motivate top talent. If you want your employees to care about their jobs and your company, your company needs to care about their families. Dependent coverage aligns with a company’s commitment to employee welfare and reaps numerous long-term advantages.
Strengthening Employee Well-Being
Employees who know their children and spouse have comprehensive health insurance experience reduced stress and anxiety about potential health or financial crises befalling their families. In turn, this enhances their focus and productivity at work. Employees with a strong support system- including a close family unit and the peace of mind that comes with health insurance – will have higher levels of job satisfaction and engagement.
Enhanced Employee Loyalty and Retention
In today’s competitive job market, keeping top talent from jumping ship is critical. The costs and disruption of employee turnover in terms of hiring, onboarding, training, lost productivity, etc., can severely dent the bottom line. According to a 2022 report by Mercer, “Employees report that behind pay and workload, insufficient healthcare benefits are the top reason they would consider leaving their employer.”
Providing group health insurance to dependents can reduce turnover rates in your company, as employees are more likely to stay with an employer that values their family’s welfare and is committed to their holistic well-being. In fact, Mercer’s Global Talent Trends report revealed that organizations with comprehensive family benefits experienced a 14% reduction in turnover.
Related: Why Include Dental and Vision Insurance in Group Insurance Plans?
Attracting Top Talent
Recruiting top-tier talent is a cornerstone of organizational success. Companies offering extended group insurance coverage have an advantage in attracting skilled professionals. Potential employees view such benefits as indicative of a forward-thinking and employee-centric organization. This competitive edge can make the difference between your job offer and another opportunity, enabling your company to stand out in a crowded job market.
Positive Workplace Culture
Happy workers are productive workers, and being happy at work requires a positive, supportive, inclusive, and genuine environment and culture. The offer to extend health insurance to dependents is a powerful way to demonstrate these virtues and promote a positive work environment where employees feel valued and connected. A Harvard Business Review study revealed that a positive workplace culture increases employee performance and a 37% decrease in absenteeism.
Reduced Absenteeism and Presenteeism
When employees are concerned about the health and well-being of their loved ones, they may be prone to taking time off (absenteeism) or showing up at work but not being fully engaged and focused on their job (presenteeism). By extending health insurance coverage for dependents, companies can curb absenteeism as employees feel secure about their family’s medical needs and reduce presenteeism by removing distractions and worries about their families.
Long-Term Savings
While the upfront cost of extending group health insurance to dependents may seem substantial, it often translates into long-term cost savings. A healthier workforce with access to preventive care is less likely to incur significant medical expenses down the line. By extending group insurance coverage to dependents, your company can go beyond standard benefits to demonstrate its commitment to complete, holistic employee care.
Extending Group Health Insurance to Dependents Does Not Have to Bury Your Bottom Line
While you may see all the advantages of extending group coverage, you may be worried about how doing so will affect your bottom line. The good news is that many cost-saving strategies are available to make offering health insurance to dependents a win-win for you and your employees.
Preferred Insurance has been helping Colorado businesses navigate the sometimes confusing and always complex landscape of group health insurance coverage for decades. Because we are an independent group health insurance broker, we are not tied to any carrier or plan. Our mission is to get Colorado businesses a benefits package that suits the needs of employees and the budgets of the company.
Contact us today to learn the available options for affordable group health insurance coverage. We look forward to speaking with you!
