Question: Is health insurance a highly ‘sought after’ benefit among New Zealand employees?
According to a recent survey, a significant number of New Zealanders report that health insurance is an important factor in making employment considerations. On the other side, the talent market today is challenged by the continuing COVID-19 pandemic; record levels of attrition; increased focus on diversity, equity, and inclusion; and rising healthcare costs that outpace inflation. In this environment, employers are trying to simultaneously expand benefits and manage healthcare costs.
Multiple large-scale surveys have found compelling evidence that employee attrition is at record levels. Health benefits can help employers attract and retain employees. According to a McKinsey report, compared with before the pandemic, the proportion of employers reporting that benefits are “very important” in talent management increased by 11%. This highlights the intensity of competition for talent and the growing need for employers to optimise employee benefits.
Benefits offerings have historically been an important component of employee acquisition and retention strategies, and research confirms that the structure and extent of offerings are only becoming more critical. Employers competing for talent will need to optimise benefit packages to improve satisfaction while managing costs. Among nonmedical benefits, employers perceive dental, vision, and short-term disability as most important. Critical illness and disability exhibited the fastest growth in perceived importance by employers. The list does not include other add-on products, such as behavioural health, telemedicine, and family-building benefits. Keeping an ear to the ground, and giving employees something that makes a difference can really improve the workplace culture. Latest results from the New Zealand Health Survey indicate that 83% of adults rated their family’s well being 7 out of 10.
Employers have several tactical and strategic options at their disposal to strengthen the quality of their benefits packages while managing costs: innovative arrangements with healthcare providers for care journeys with higher prevalence for working populations such as musculoskeletal, pregnancy, or behavioural health; and health management tools to help employees navigate the healthcare system.
In summary, ‘insuring’ staff wellbeing, through multiple channels, insures the future of the business.