Indian cos use health cover to retain employees

Written by Agencies | Mumbai | Updated: Dec 29 2009, 00:18am hrs
Undeterred by a hike in premium costs, over 40 per cent Indian companies use health care cover for employees as a tool to attract talent and a retention strategy, a survey said.

Rising premium costs have not reduced the importance of health care cover as an employment value differentiator and Indian companies continue to use it as a part of their hiring and retention strategy, Watson Wyatt, a global consultancy firm said in its Health Care Benefits survey.

Almost 41 per cent of the companies surveyed use health care cover as a talent attraction and retention tool, while 11 per cent use it to minimise losses arising out of employee health issues, the survey said.

The survey covered 125 of Indias largest employers from across industries in private sector, reporting an average revenue of more than Rs 400 crore.

According to the survey, most Indian companies providing health care cover to their employees are grappling with an average 10 per cent rise in premiums over the last three years.

Rising health care costs are making corporates strive to strike a balance between increasing premium costs and talent management strategies, Watson Wyatt India Head Benefits Practice Kulin Patel said.