Using Group Medical Insurance to Attract Talent to SMEs

As a matter of fact, it is becoming increasingly difficult for companies to recruit full-time staff, and it is no less challenging for small and medium-sized enterprises (SMEs) and start-ups to recruit talent. According to a recent survey, 85% of Hong Kong employers are facing a brain drain and recruitment difficulties. In order to attract and retain talent, besides salary, staff benefits are also critical. Among these, group medical insurance is one of the benefits that employees are most concerned about.

Although it is not mandatory in Hong Kong for employers to purchase group medical insurance for their employees, most companies provide it regardless. When comprehensive group medical insurance is made available to employees, corporates are sending out the message that their employees coming first, effectively boosting a sense of cohesion and of belonging to the company as a unified entity, which is something simply not present in hybrid working. As a result, companies that opt for group medical insurance for their employees are more conducive to recruiting talent and promoting a stronger bond within the existing team, paving the way for more robust business development.

Many insurance companies on the market provide affordable group medical insurance solutions for SMEs. Most of these plans offer options for corporates to choose freely and formulate flexible and suitable plans according to their budget. Corporates may also assign employees to different plans according to rank, position, teams, the number of employees in the company, and human resources policies. Differentiation is beneficial for start-ups and SMEs that thrive on flexibility.

As for policy coverage, many group medical insurance plans provide a wide range of options to choose from, including hospitalisation, outpatient services, specialist services, traditional Chinese medicine, bone-setting , acupuncture, physiotherapists, chiropractors, dental, personal accident, and more, to meet the changing, diverse needs of SMEs. As people become more aware of the importance of maintaining good mental health, group medical insurance plans have begun offering mental health coverage, including psychotherapy and counselling services to help employees deal with stress and emotional issues, enhancing both work efficiency and their quality of life. Extending comprehensive medical insurance is certainly an attractive prospect for an increasingly health-conscious workforce. It will not only increase the likelihood of recruiting the right talent but will also help SMEs achieve long-term stability.

Many insurance companies have launched exclusive medical insurance electronic platforms for companies and their employees eligible for group medical insurance, giving them easy and direct access for managing their insurance policies. In addition, the insured can also use the platform to find doctors, submit claims and even check coverage online. The end-to-end process is digitalised, meaning the need to allocate additional manpower and administrative resources is reduced.

In summary, group medical insurance is simple, direct and flexible. It is an excellent way to build a strong, team-oriented culture and attract talent. For SMEs, offering group medical insurance could be what gives them the competitive edge to gain a firm foothold and achieve success in the post-pandemic era.

This article was published in the <Hong Kong Economic Journal>.