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Secure Your Team: 6 Reasons to Offer Insurance to Your Employees

colleagues in white long sleeve shirts sitting and reading a financial report on a conference room

Photo by Mikhail Nilov on Pexels.com

Are you losing top talent to competitors? Or did you notice record-high employee absenteeism due to illness?

Retaining skilled team members is crucial to business success. But that can prove challenging if you have little in place to prevent your employees – your people – from getting sick or feeling the need to look for better opportunities.

Fortunately, business insurance can help keep your staff healthy, happy, and productive.

Insurance is indispensable for safeguarding your team’s well-being, as it not only enhances morale and productivity but also aids in retention. This article explores the advantages of including insurance in your employee benefits package and why it is a strategic move for businesses in the United Arab Emirates (UAE).

1. Employee Retention

Life insurance has been proven to enhance employee retention within companies.

When staff members receive life insurance as part of their benefits package, it communicates a profound message of care from their employer. This assurance of financial security instils a sense of loyalty among them, and can reduce turnover rates significantly.

Furthermore, workers who feel financially protected are more inclined to stay committed to their current employer. In essence, offering insurance reflects a genuine dedication to the overall well-being of employees, fostering enduring loyalty and retention within the company.

2. Improved Morale and Job Satisfaction

The psychological impact of feeling financially secure cannot be overstated.

Knowing that they and their families are covered in case of illness or unforeseen circumstances alleviate an employee’s stress and anxiety, allowing them to focus more fully on their work.

Moreover, having good health coverage with a company fosters a sense of job satisfaction. At the same time, the absence of coverage can impose significant burdens on workers and their families, potentially impacting productivity.

Research cited in The Milbank Quarterly indicates that offering health benefits has a positive impact on overall company performance. Employers surveyed in the study recognise that access to health insurance affects recruitment and retention and enhances employees’ attitudes toward work and, ultimately, their performance.

3. Competitive Job Market Edge

These days, high-quality talent no longer just seeks competitive salaries. These days, professionals are increasingly prioritising comprehensive benefits packages when considering job offers.

The inclusion of life insurance signals to candidates that the company supports their well-being beyond just their wages.

Modern employees are becoming more discerning about their benefits package, and a robust insurance plan adds a compelling dimension to overall compensation. Candidates may view insurance benefits as equally important, if not more so, than salary considerations.

With its comprehensive coverage and additional perks, group employee benefits insurance can attract top talent to your company. It alleviates the financial burden that employees may find in individual insurance policies, thereby enhancing the attractiveness of your compensation package.

4. Employee and Company Productivity

If most of your employees’ sick days are getting used up, it may be high time that you look into group health insurance packages.

Employees with medical insurance are more likely to seek regular preventive care and receive timely treatment for illnesses and injuries. Consequently, they are less likely to miss work and have fewer days of absenteeism.

Lower absenteeism rates translate to cost savings for employers as the need for temporary replacements decreases and production teams operate more smoothly.

In contrast, unhealthy workers may contribute to higher turnover rates and increased labour costs associated with disability insurance and workers’ compensation. This makes employee insurance coverage a worthwhile investment that enhances individual well-being, boosts overall company productivity, and reduces financial burdens on the company.

5. Cost-Effective Employee Benefit

Offering group life insurance is a highly cost-effective option compared to individual policies.

Group plans distribute the cost across the entire company or group, resulting in lower premiums for each employee. This means reduced financial strain on both the employer and individual employees.

Moreover, this type of insurance plan is popular because it can be bundled with other insurance types, such as health insurance, to provide additional discounts. This bundling not only makes coverage more affordable for employees but also demonstrates the employer’s commitment to employee well-being.

6. Peace of Mind for Employees and Their Families

Employees covered by group life insurance policies can be assured that their family members are covered financially in case of their passing.

The funds from a life insurance policy can help their families during a time of grief, covering essential expenses such as funeral costs, living expenses for dependents, household debts, and estate taxes.

Life insurance proceeds can also:

Having these ready ensures their family’s financial needs are met even after the employee’s demise.

Secure Your Team with Employee Insurance

Take the next step in securing your employees’ future. Team up with a reliable insurance company in the UAE to provide comprehensive coverage for your people. Make their well-being your priority and give them a sense of security and peace of mind so they can return the favour and bring your company to new heights.

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