India’s workplace ecosystem is full of challenges and opportunities. An employer can hire the best people available, but at the same time, risks losing them to competition. Likewise, employees can perform well and move up the rung in the same organization or can leave and join an organization that offers greater scope for growth and engagement. So, certain employee-benefit schemes help in retaining the workforce.
It thus becomes the employer’s responsibility to retain their workforce. Employee-benefit schemes have now become the most important measure for organizations to incentivize employees. These schemes make any workplace better. Some of them may also help employees bond with their employer over a long time.
Types of employee-benefit schemes
Group life insurance
Group term life insurance cover is a useful tool to provide life risk cover to an individual. Such insurance cover primarily includes a death benefit. If you think your organization does not need group life cover, think again. Because in the high-pressure corporate scenario, every employee is exposed to some level of risk from work stress. This insurance also provides financial protection to the employee’s family in case of their demise. Thus, offering this benefit can help employers retain talented employees.
Group health insurance
Another direct investment in your employee’s health is a group mediclaim policy. This offers uniform risk cover for all employees. Such medical insurance covers hospitalization expenses and can be extended to cover maternity expenses too. Moreover, there is no waiting period for pre-existing diseases and medical check-up is not mandatory for coverage. Thus, group health insurance policies cover most health issues an individual might face at an affordable cost.
Group leave encashment scheme
A company employee is entitled to paid leave as per standard rules and regulations. Employers can offer to leave encashment to employees. Unused leaves can be encashed and can cost a lot. However, an employer can cover this cost by buying a leave encashment facility for their employees. The main benefit of this is that employees can encash their leaves fast by informing the insurer. The insurer keeps track of the likely leave encashment amounts and this simplifies accounting for the company. Some schemes also include life cover benefits in case of the death of an employee.
Employers have the option of buying a group pension scheme or superannuation policy to provide retirement income to their employees. All group pension plans are subject to a condition: employees can withdraw the amount only at the time of retirement. Group pension offers the benefit of saving for retirement and receiving a pension on retirement. These schemes also invest contributed funds and can earn a good return for the company and employees.
The benefit of insurance cover
Group insurance coverage is an essential and sensible workplace investment. An affordable premium based on collective risk means that employers and employees both benefit. Additionally, employers also can choose to cover only a select base of employees or opt for different kinds of insurance for different groups of employees. For instance, an organization might choose insurance cover only for field workers against personal accident risk.
Additional Read: How does a Group Health Insurance benefit an organization?
Many tailor-made insurance packages are now available to organizations depending on their industry, age, composition, number of employees, etc. To correctly identify your unique needs and zero in on the best insurance cover to meet these needs.