A survey by Watson Wyatt, a global consultancy firm, has found that many Indian companies are offering health coverage to employees in order to retain them. The Health Care Benefits survey also said that some companies use health coverage as a means to minimize losses arising out of employee health issues.
The survey was mainly conducted in the private sector and included 125 of India's largest employers. The latter were from all areas of the industry and had a turnover of Rs 400 crores on an annual basis.
"Rising health care costs are making corporates strive to strike the balance between increasing premium costs and their talent management strategies," said Watson Wyatt India Head of Benefits Practice, Kulin Patel. He added that in order to keep pace with rising premium costs, companies need to customize plans.
The survey found that almost 41 per cent of the companies "use health care cover as a talent attraction and retention tool, while 11 per cent use it to minimize losses arising out of employee health issues." Furthermore 58 per cent of the companies surveyed did not deduct any premium costs out of employee salaries.
The survey also found that just 17 per cent of the companies were offering post-retirement medical benefits to their employees.