As per the survey conducted by Deloitte India 2022 related to the Workforce and Increment Trends. India has faced an increase in the average workforce attrition rate from 15.8 percent in 2020 to 19.8 percent in 2021. Various factors fueled it, including lower salaries, reduced fringe benefits, increased workload, insufficient workforce insurance, and reduced interpersonal and social interactions. Therefore, in today’s workforce environment, it’s more crucial for companies to provide their employees with comprehensive insurance coverage, job security, health security and flexibility. Group Medical Policy provide comprehensive medical coverage to employees, ensuring effective and affordable healthcare coverage. By doing so, companies can reduce attrition and will see a drastic increase in employee retention.
What is Employee Attrition?
When the employee leaves the company through voluntary resignation due to personal or professional reasons and the vacant position cannot be replaced immediately. This refers to employee attrition. There can be various reasons including low salary, no salary hike, lack of employee benefits, unfavorable office conditions etc.
How Group Medical Policy helps in Reducing Attrition?
● Providing Group Medical Policy to Enhance Productivity
Health insurance coverage for employees is essential to offer them access to proper treatment. This will increase employee wellness and is helpful for the workers who are often exposed to hazardous working environments. This will, in turn, enhance health security and productivity among the employees.
● Group Medical Policy Reduces Company Liability
Workmen’s compensation insurance is important for companies to have it in order to avoid higher costs and lawsuits. This type of insurance will cover any liability that results from an employee’s disability, injury, or death while on the job. The amount rewarded can help workers and support their families due to loss of income.
● Encourages Employee Loyalty and Job Satisfaction
If companies financially secure their families with comprehensive insurance coverage including health and life insurance, the employee will feel valued. This encourages loyalty towards work and gives them job satisfaction.
● Helps in Tax Benefits
The premium that companies pay for employee benefits coverage becomes a business expense. The P/L account reflects this and is eligible for tax breaks, known as ’employer entitlement,’ under the Insurance Regulatory and Development Authority Act, 1999. Group Medical Policy helps provide comprehensive medical coverage to employees, ensuring their healthcare needs are met effectively and affordably, contributing to their well-being.
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Written By-
Mayank Sharma
MBA Finance
He is a professional who brings extensive knowledge and expertise to the field of group health insurance. He has dedicated 7years to helping individuals and businesses navigate the complexities of insurance. Having worked closely with numerous clients and insurance providers, he deeply understands the nuances of group health insurance policies. With a reputation for providing insightful and informative content, he leverages his industry experience to educate readers about the importance of group health insurance and its benefits. Through their articles, Mayank Sharma aims to empower individuals and businesses to make informed decisions about their healthcare coverage, ultimately promoting healthier and more secure communities.
