Should Your Business Offer Private Medical Insurance?

Competing for Good People? Health Benefits Can Help You Stand Out

Recruitment is not only a salary conversation anymore. Candidates can compare flexibility, culture,

development opportunities, pensions and the benefits sitting alongside their pay. For businesses competing for good people, Group Private Medical Insurance can be one of the more visible ways of showing that employee health and wellbeing have been considered as part of the overall reward package.

Depending on the scheme, private medical insurance can provide access to private consultations, diagnostics and eligible treatment. Cover, exclusions and routes to treatment vary, so it is important not to assume every scheme works in the same way. For an employee, however, the attraction is easy to understand: when something is wrong, having another route to appropriate assessment and treatment can feel extremely valuable.

Why does providing Private Medical Insurance matter?

The benefit can also matter before anybody needs to use it. Knowing that health cover is part of the

employment package, may provide reassurance and can help a role feel more complete when somebody is deciding whether to join a business. In a competitive recruitment market, that wider package can influence how an employer is perceived alongside salary and career opportunity.

What does adding this benefit do for the existing workforce? 

For existing employees, the value can be equally important. A benefits package that feels considered can reinforce the message that people are more than a number on the payroll. Where an employee is able to access appropriate care sooner, it may also help them deal with a health issue and return to normality more quickly. That can be positive for the individual and may reduce some of the disruption associated with absence for the employer.

What staff members should I consider providing this benefit to? 

But PMI should not simply be added because it sounds attractive. The cost and design of a scheme need to make sense for the business. Employers may need to consider who will be covered, what level of cover is appropriate, how the benefit fits alongside other protection and wellbeing services and whether employees will understand how to use it.

What happens if circumstances change with my business?

A growing business may also need something different in three years from what it needs today. Workforce numbers change, budgets change and recruitment priorities change. Reviewing the scheme rather than treating it as a one-off purchase helps ensure the benefit continues to reflect the business.

How do I know which scheme is right for my business?

This is where advice becomes valuable. Rather than starting with the longest list of features, the conversation can start with the employer: Who are you trying to support? What are you trying to achieve? What budget is sustainable? From there, available schemes can be compared on more meaningful terms than price alone.

Is PMI really worth it for my employees?

PMI will not be right for every organisation, and no benefit can create a good workplace on its own. But when two job offers look similar, the way a company chooses to look after its people can become an important difference.