How to Turn Healthcare Benefits into a Competitive Advantage

Today, employees are looking more closely at non-salary compensation offerings when choosing where to work. They’re looking for better PTO, improved work flexibility, and, most importantly, better healthcare benefits.

A recent Forbes Advisor study found that 67% of employees believe healthcare benefits to be the most important employer benefit—and that one in 10 workers would take a pay cut to have access to better health benefits. 

That means, there’s an opportunity for employers to save money on salary costs while also providing employees with a formula for compensation that actually serves them. 

That same study also found that 40% of employers believe workers leave their jobs to find employment that offers better benefits–meaning a quality health insurance plan is key for preventing turnover and improving retention. 

Plus, offering quality health insurance to your employees also shows that you care for employees’ physical and mental well-being and that you value them as a person and not just their work—a critical part of building a successful culture with high engagement and productivity. 

So, what exactly are the key features of a quality healthcare benefits program? How can you turn healthcare into a competitive advantage that helps you attract and keep (happy) talent? Read on to find out. 

Offer Choices

Think about the diversity of your workplace; it’s likely that you employ a whole range of demographics, from more senior-level employees who have families to younger entry-level employees with lower budgets.  A key step in designing a competitive healthcare benefits program is providing various options that meet your workforce’s diverse needs. Some employees might prefer a high-deductible plan with health savings accounts, others might prefer more traditional copay plans. Be sure to offer employees a variety of plans so they can select the one that best fits their lifestyle and budget (increasing satisfaction and engagement along the way).

Provide Comprehensive Coverage 

Modern employees want to know that their employer truly cares about their well-being and that they’re covered, no matter what happens. Comprehensive coverage refers to a health plan that provides broad coverage of a wide range of healthcare services, such as physician visits, hospitalization, and emergency room visits. Covered care should be both preventive and in response to injury or illness. Don’t skimp on your plans: with more comprehensive coverage, employees can focus on what matters most–staying healthy, happy, and productive. 

Make Sure It’s Affordable 

What’s considered affordable may differ from employee to employee, but there’s also a government-defined standard for affordability when it comes to healthcare. Under the federal Affordable Care Act’s employer mandate, large employers must offer health insurance that is affordable and provides minimum value to 95% of their full-time employees and their children, or be subject to penalties. 

The minimum value is the standard of coverage that applies to job-based health plans—and there are several ways to pass the minimum value test. Employers should use the employer mandate as a reference point for providing affordable healthcare benefit options to their employees. 

Think Through Providers

Modern employees want options when it comes to providers, without compromising on cost. Be sure to offer plans with a wide range of in-network providers so employees can get access to the exact care they want without paying expensive out-of-pocket costs to see out-of-network providers. For employers, it’s an advantage to give employees the opportunity to see healthcare providers they trust and have built relationships with, and choosing a plan with a wide range of providers will increase the chances that employees can connect with the care they want. 

Think Outside the Box

Today employer-provided “health care” is about more than just health insurance. With the rise of burnout and heightened attention to employee mental health from employers, many modern employees expect their healthcare benefits to cover a broader range of benefits–including gym membership discounts, mental health services, financial wellness resources, and more. By offering benefits that address the whole person’s health, organizations can differentiate themselves in a competitive job market and attract top talent–while saving money on official healthcare costs. 

Educate and Be Transparent

Healthcare benefits (and healthcare in general) are difficult to navigate, no matter who you are. Ensure your employees have an easy experience signing up for your plans (and help them understand the value of your options) through education during onboarding and open enrollment. 

Improve transparency by providing tools and resources that help them compare costs and quality of care so they can easily make an informed decision. Increased education and transparency will help employees get the most out of your healthcare benefits–improving overall satisfaction (and related employee metrics like engagement and productivity). 

For more ideas on how to make your healthcare benefits program stand out to attract and retain top talent, tune in for another episode of America Back to Work: Expert Interview Series. We’re sitting down with Allison De Paoli, founder of Altiqe—a healthcare benefits consulting group. 

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