Providing private health insurance for employees is a smart investment for UK businesses. Not only does it support employee well-being, but it also enhances recruitment, retention, and productivity. Here’s why offering private health insurance can benefit your company.
1. Attract & Retain Top Talent
In a competitive job market, offering health insurance as an employee benefit makes your company stand out.
- 74% of UK workers consider healthcare benefits important when choosing an employer.
- Businesses that offer private health insurance see higher employee retention rates.
✅ Result: Employees are more likely to stay with a company that values their health.
2. Reduce Employee Sick Days & Improve Productivity
With NHS waiting times increasing, employees with private health insurance can access faster treatment for medical issues, meaning they return to work sooner.
- Employees without PMI may wait weeks or months for NHS treatments.
- Private health insurance provides quick access to GPs, specialists, and treatment, reducing long-term absenteeism.
✅ Result: Fewer sick days and a more productive workforce.
3. Boost Employee Satisfaction & Well-being
A healthy workforce is a happier workforce. Offering health insurance shows employees that their employer cares about their well-being.
- Mental health coverage, such as therapy and counselling, can help reduce stress and burnout.
- Preventative care services allow employees to stay healthy and detect conditions early.
✅ Result: Improved morale and a stronger company culture.
4. Business Health Insurance is Tax Efficient
Providing private health insurance for employees has tax advantages.
- Health insurance can be considered a business expense, meaning corporation tax relief may apply.
- For employees, PMI is classed as a benefit-in-kind (BIK), but many are willing to accept this in exchange for faster access to healthcare.
✅ Result: Your company saves on tax, and employees gain valuable healthcare benefits.
5. Enhances Company Reputation
Businesses known for offering good employee benefits, including health insurance, gain a better reputation.
- Having strong workplace benefits can lead to positive employer reviews.
- Clients and investors see companies with well-supported employees as more stable and ethical.
✅ Result: Your company attracts better talent, clients, and partners.
Conclusion
Offering private health insurance is a win-win for UK businesses. It reduces sick leave, improves employee well-being, enhances retention, and provides tax advantages. If your company wants to remain competitive, investing in employee health insurance is one of the best decisions you can make.