Terms such as “employer branding” or “emotional pay” have been on the lips of human resources managers for years. Especially in large companies. Today we will talk about the role of health insurance as a social benefit for employees: its advantages and the bonding it generates with the company.
What is Employer Branding?
This concept comes from the USA. It could be said that:
Employer branding is the value that a brand, as an employer and generator of employment, has for its employees.
That is, what value it brings to its workforce, which is what will attract and retain talent.
Today we are all familiar with rankings such as the Top Employerfor example. Thanks to it, excellence in a company’s working conditions is certified. This is an example of the importance of these methods of motivation and loyalty.
And why do we pay so much attention to these issues lately? Because employees who are proud of their company, of what it stands for, of how it treats them… become ambassadors for it.
Linked to this concept is the “emotional wage”.. This represents all the non-monetary benefits enjoyed by a company’s employees, but which are also part of their compensation. We are talking about:
- reconciliation of work and family life
- good working environment
- a company culture aligned with our values
- involvement of employees in the making of certain decisions
What role does health insurance play in the emotional wage?
Company health insurance is a social benefit for company employees. And it is not just any benefit, since it is one of the most highly valued by workers, according to various barometers that have been carried out.
Without going any further, it can be interpreted that a company, by facilitating access to health insurance (either by financing it or getting it on better terms for its staff and family members), is taking care of their health and well-being.
In addition, as a benefit that can be introduced through flexible remunerationIn addition, as a benefit that can be introduced through flexible remuneration, at the fiscal level, it allows lower taxes to be paid by employees.
Example: a female worker with a salary of €30,000 per year and a health insurance of €500 for herself and another one for her husband. For the tax authorities, her real income is €29,000, saving about €140 per year in taxes (withholding tax of 14%).
What are the additional benefits of health insurance for the company?
There are many benefits that the company obtains by offering health insurance for its employees. Among others:
Improves the company’s image
Both with regard to the competition, customers and, of course, employees. They are a loyalty-building element, as they affect the human level of the workforce, which is highly valued, and reinforce the company’s internal Corporate Social Responsibility.
Better health and higher motivation = better productivity
It turns the investment in health insurance into a productive benefit, profiting from that bet on health insurance.
Improves absenteeism figures
The insurance, due to its rapid diagnosis, allows for shorter recovery times, as well as greater flexibility in scheduling appointments with specialists, thus avoiding the need for someone to be absent for a whole morning for a consultation.
Your taxation
It is a 100% deductible expense for corporate income tax purposes, which means that the company will save tax.
It is a wage negotiation tool
In addition, it is much more economical and clearly better than a simple salary increase, because of the other advantages we are seeing.
Prevention programs
There are insurance policies that allow the introduction of prevention and health improvement programs in the workplace, in order to minimize health problems that may arise in the future.
However, it is not an easy task to choose an insurance company that meets the essential requirements. It is important that they facilitate the administrative procedures, that they have an attractive cost, but that they are stable over the years, a good medical directory…
PIB Group Iberia has been taking out health insurance for companies for many years, so we have a range of companies that meet these needs. If you do not know how to choose your health insurance and how to start implementing these mechanisms, we are at your disposal to help you throughout the process.
