Importance Of Offering Employee Health Benefits For A Healthy Workforce

employee health benefits

In today’s fast-paced world, employee health often takes a backseat, overshadowed by the relentless demands of work and personal life. The stress of juggling numerous responsibilities can lead to adverse physical and mental health outcomes, affecting not only the individual but also their productivity and contribution to their organization. Addressing these health concerns is no longer a luxury—it’s a necessity. The solution? Comprehensive employee health benefits. This article aims to shed light on the importance of these benefits, helping employers to navigate this critical component of employee management effectively.

What are Employee Health Benefits?

Employee health benefits are specialized provisions offered by employers that cater to the health and well-being of their employees. Given that healthcare can be a significant expense, these benefits serve to protect employees from the financial strain of medical costs. Furthermore, they promote healthier lifestyles, potentially reducing absenteeism, which, according to studies, costs employers $225.8 billion annually in the United States.

The Importance of Including Employee Health Benefits

Importance of Including Employee Health BenefitsEmployers might wonder why they should invest in health benefits for their employees. Are these benefits merely additional expenses, or do they provide tangible returns? Here are 10 important reasons why employee health benefits are crucial for both employees and employers:

  • Attract and retain top talent: Offering competitive health benefits can help organizations attract and retain top talent, as many job seekers prioritize health benefits when considering job offers.
  • Improve employee health: It can provide employees with access to preventive care, routine check-ups, and other healthcare services. This can help them maintain good health and prevent serious illnesses.
  • Increase employee productivity: Healthy employees are more likely to be productive and engaged in their work, boosting overall organizational performance.
  • Reduce absenteeism: Healthier employees typically take fewer sick days, decreasing productivity loss due to absenteeism.
  • Control healthcare costs: By providing access to preventive care and encouraging healthy behaviors,  it can help control healthcare costs over the long term.
  • Boost morale and job satisfaction: Offering health benefits can help boost employee morale and job satisfaction, as employees feel valued and supported by their employer.
  • Meet legal requirements: In many countries, employers are required by law to provide certain health benefits to their employees, such as health insurance coverage.
  • Support work-life balance: Employee health benefits, such as paid time off for illness or caregiving, can support employees’ work-life balance and help them manage their personal and professional responsibilities.
  • Enhance employer brand reputation: Offering comprehensive health benefits can enhance an organization’s brand reputation, as it demonstrates a commitment to employee well-being and can attract customers who value socially responsible businesses.
  • Increase employee loyalty: By investing in employee health benefits, organizations can increase employee loyalty and reduce turnover, as employees are more likely to stay with an employer who supports their health and well-being.

Types of Employee Health Benefits

Types of Employee Health BenefitsWhen we talk about employee health benefits, it’s not a one-size-fits-all concept. The types of benefits offered can vary greatly depending on the organization’s size, budget, and the specific needs of the employees. Here are some of the common types of employee health benefits:

  • Health Insurance: This is the most common type of employee health benefit. Health insurance typically covers a substantial portion of the cost of medical care, including doctor’s visits, hospital stays, surgeries, and prescription drugs.
  • Dental and Vision Insurance: While these may be included in some health insurance plans, dental and vision insurance are often provided separately. They cover costs related to dental care, such as cleanings, fillings, and braces, and vision care, such as eye exams, glasses, and contact lenses.
  • Disability Insurance: Disability insurance provides income protection to employees who become unable to work due to a disability. This type of insurance typically covers a percentage of the employee’s salary.
  • Life Insurance: Life insurance policies provide financial security to the beneficiaries of employees in the event of their untimely death. This benefit is particularly valuable for employees who have dependents.
  • Mental Health Benefits: As awareness about the importance of mental health increases, more and more employers are offering benefits to support mental health. These can include coverage for therapy and counseling, stress management programs, and access to mental health apps.
  • Wellness Programs: Wellness programs aim to promote healthier lifestyles among employees. They can include things like gym memberships, weight loss programs, smoking cessation programs, and even classes on nutrition and stress management.
  • Preventive Health Services: These services focus on preventing illnesses before they occur. This could include annual health check-ups, vaccination programs, and health screenings.

Factors to Consider When Offering Health Benefits

Designing an effective employee health benefits plan requires careful consideration of several key factors. Here’s what employers need to keep in mind:

  • Budget – Assess what the company can afford to offer without compromising its financial stability.
  • Employee Needs and Preferences – Consider the specific health needs and preferences of your employees to ensure the benefits are valuable and relevant.
  • Workforce Demographics – Take into account the age, lifestyle, and health conditions of your workforce to offer suitable benefits.
  • Legal Compliance – Ensure the benefits plan complies with all relevant healthcare laws and regulations.
  • Competitive Landscape – Research what similar companies offer to ensure your benefits package remains competitive.
  • Provider Network – Choose a provider with a comprehensive, high-quality network of healthcare providers.
  • Flexibility and Scalability – Ensure your health benefits plan can adapt and evolve with changes in your company size or structure.


In conclusion, employee health benefits are a crucial part of the overall compensation package, providing much-needed protection against healthcare costs and promoting healthier lifestyles. The importance of these benefits can’t be understated as they significantly contribute to employee satisfaction, retention, productivity, and overall well-being. By carefully considering factors, employers can craft a health benefits plan that meets the unique needs of their workforce while aligning with the company’s objectives. Remember, a healthy workforce is a productive one, and investing in employee health benefits is a strategic move towards a healthier, happier, and more successful business.

Employee wellness programs are the key to improving employee motivation, productivity, and retention. At MantraCare, we have a team of health experts, counselors, and coaches who serve corporate employees with 10+ well-being programs including EAP, Employee Diabetes Reversal, Corporate MSK, Employee Fitness, Corporate Yoga, and Employee Meditation.

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