A guided, structured onboarding process is a critical element in retaining employees. One subject that should be covered in the onboarding process is your health insurance options. Health insurance is a colossally complicated subject and a daunting field for new employees to navigate. That's why it's important to dedicate a phase of your onboarding process to explaining your company's health insurance options so your new hire feels confident and informed about their health coverage selection.
Health Insurance is Complicated. Very Complicated
Employers with over 50 employees are legally required to offer health benefits. But even if your business provides health insurance, your employees may not understand which health plan is best suited for their lifestyle and income. Depending on what your business offers, there are several options to choose from health maintenance organizations, HSAs, FSAs, and more. During the onboarding process, make sure your HR administrator speaks with your new hire about your company's health options and popular choices for their demographic.
Because chances are your new hire doesn't understand health insurance as much as they should. Data supports that the general US population does not grasp basic health insurance terms such as deductible, premium, and co-insurance. And if your new hire doesn't know what these basic terms mean, it's not going to get easier when they go through open enrollment. Open enrollment and health insurance are riddled with acronyms, caveats, deductibles, and more. If your new hire is new to the health insurance process, their best resource will be an informed HR department. It's a big responsibility, and one Dominion can help with.
The ROI of Explaining Health Insurance to New Employees
As stated above, a positive, efficient, and informative onboarding process greatly benefits organizations' retention rates and how employees feel about their company. This point clearly illustrates how confident and knowledgeable new hires think about their health insurance plans. According to a 2016 workplace benefits study, 75% of respondents who answered they had an "excellent" experience and felt "highly confident" about their open enrollment wanted to stay at their company for at least five years.
On the other hand, 53% of respondents who said they had a "good, fair, or poor" experience wanted to stay at least five years at their company.
Onboarding and Health Insurance go hand-in-hand.
As can be seen, the way your new hire feels about your onboarding process and health insurance explanations is essential for long-term retention. If your goal is to recruit and retain top talent, these two processes should go hand-in-hand, and they should be topics your HR department takes seriously. If your company is paying for your employees to have health insurance, it only makes sense to ensure it is utilized to its maximum capacity. That way, both you and your employees can get the most out of the working relationship. If you're looking to improve and analyze your onboarding process, request a demo with Dominion to get started!
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