The ROI of Offering Health Insurance in the Workplace
Offering health insurance as part of your employee benefits package might seem like an extra cost—but when done right, it’s an investment that can deliver real returns for your business. From reduced absenteeism to improved morale and stronger retention, providing health insurance can pay off in ways that directly support your company’s performance and culture. Here’s a closer look at the return on investment (ROI) of offering health cover to your team.
Lower Absenteeism
When employees have access to medical insurance, they’re more likely to seek help early and get treatment quickly. That means less time off waiting for specialist appointments, scans, or surgeries. Faster access to care means a quicker return to work—and fewer disruptions to your business. One provider’s data showed that three out of ten insured employees made a claim, with an average of 3.3 claims per policy in a year, showing that many employees are actively using the cover.
Increased Productivity
Healthier employees are more focused and energised. When your team isn’t distracted by health worries—either their own or a family member’s—they’re better able to concentrate and perform well. Mental health support, often included in health insurance, also helps employees manage stress and stay engaged.
Better Recruitment and Retention
In a competitive job market, health insurance is a highly valued benefit. It helps your business stand out to top talent and can make a real difference in keeping great staff. Employees are more likely to stay with an employer that supports their wellbeing—and replacing a staff member is often far more expensive than investing in a benefits package.
Improved Workplace Culture
Offering health insurance shows that your business cares about more than just output—it shows you care about people. This builds trust and loyalty, strengthens team culture, and reinforces your values as an employer. A culture of care also supports higher engagement and employee satisfaction.
Supporting Families and Reducing Stress
Most group health schemes allow employees to add partners or children, often at a discounted rate. This helps support the whole household’s wellbeing. When employees know their family is protected, it reduces personal stress—and less stress means better focus at work.
Predictable Costs and Tax Efficiency
Group health insurance is often more affordable per person than individual policies. You can choose a plan that fits your budget and scale it as your team grows. In many cases, offering benefits like insurance may also provide tax efficiencies for your business.
Final Thoughts
Offering health insurance is more than just a perk—it’s a smart business decision. It reduces the cost of time off, increases productivity, and helps you attract and keep great people. In a tight labour market, the ROI of health cover goes beyond numbers—it shows your business values wellbeing, loyalty, and long-term success. If you’re ready to explore your options, Employee Lab can help tailor a group plan that works for your team and your budget.
If you’re reading this, chances are you’re an employer who genuinely cares about the wellbeing of your people. At Employee Lab, we offer two key services designed to support healthier, more engaged teams.
Pulse is our employee portal, giving your team access to practical resources on financial, physical, nutritional, and mental wellbeing.
We also offer Group Insurance, providing employees with access to life and health cover—often without the medical hurdles they’d face on their own.
Even better, employees covered under our Group Insurance automatically receive a subscription to Pulse at no extra cost.
Get in touch with us to find out how these services can make a meaningful difference in your workplace.