Being an entrepreneur and running your own organisation gives an adrenaline high that very few other things can provide. Once the business starts generating substantial revenues, expansion becomes the norm and turnover starts rising, it becomes challenging to handle the finances and ensure that the profits you earn are used to grow the business rather than paying them off as taxes. Mind you, paying taxes isn’t bad, but if you can divert the very same funds in something better and useful for the company, its employees and society as a whole, it’s even better!
The most rational, profitable and easiest way to do that is to invest in insurance. And no, it’s not about insuring your offices or infrastructure, but insurance of employees. There are a multitude of benefits of taking this smart decision and world over every major organisation has their employee insurance plans in place. The important point is, start early and don’t wait to become a huge organisation for this crucial aspect of business.
Let’s share with you the benefits of taking an insurance cover for your employees and how it works out for not only them, but also for you as a company:
This is one of the best ways to motivate your employees and gain their loyalty by providing insurance cover to them. Not only will it help them to feel secured, it also helps the company in case the employee is hospitalised for some medical emergency as the costs can be recovered from insurance company. An employee who feels cared for by the employer would always try to give his/her best at his job. Being medically covered would make employees relax and focus their energies on work.
2) Tax Benefits
This is the biggest financial gain a company can derive out of providing insurance cover. Not only the employees can claim tax rebates in their tax returns, the employer can also get tax benefits. There are a few misconceptions that this is an additional expense and may cut short the profits, but in the long run it works out in the benefit of the organisation. The tax rebates combined with high employee morale will more than cover up for any expenses incurred to provide insurance cover to employees.
3) Group Insurance
Since companies go for group insurance policies and not individual covers, there is a lot of savings to be made this way too. Most insurance companies provide a discount of as much as 25% on insurance policies covering group of employees compared to selling individual covers. It makes business sense for companies selling insurance while for the one on the buying side, it helps in massive reduction in costs. Some companies even go further ahead and get the dependents of employees also insured. This is not only a sound business decision, but also helps to keep employee motivation brimming since they know that their family members are also secure. It also helps that when buying group insurance, there is less scrutiny of the individual employees by the insurance companies as regards to their health background. Even though basic checking would be compulsory, but one can’t be declined for insurance for trivial issues that individual customers have to face sometimes.
4) Treatment In A Foreign Country
There are rules in the tax laws that stipulate companies to claim for tax benefits in case their employees have to travel abroad for medical treatment. Of course there are certain guidelines to be met, but if a company meets the criteria, it can help their employees to get best medical treatment possible and still not spend a fortune on it. Just imagine the impact on the employee’s psyche by such a move!
Financial prudence is of utmost importance when running an organisation. However, certain decisions have to be taken keeping the emotional side in mind that also help in cutting costs and prove to be a financial boon. Providing employees with life insurance is one such decision that every organisation must take during its course of operations, essentially sooner the better during its life-cycle. This not only make employees more loyal, but also make them stick to the job for longer periods of time cutting down on attrition, which is a major concern for every growing company.
Therefore it is important to make this part of your business strategy to grow business while retaining the best talent and helping them stay safe, secure and grow with you. You can find out about various group insurance plans offered by different insurance providers, compare their terms and conditions, negotiate with the ones that match your criteria and then make the investment. This would surely be one of the best investments ever made!