Some business leaders may wonder if employee benefits matter in today’s uncertain job market. The fact is that people still expect support that goes beyond a paycheck. Eighty-one percent of employees report that they’re more likely to stay with their employer due to benefits.¹
That’s why it’s wise to consider healthcare coverage for your workforce. The return on investment is clear. A study from Washington University in St. Louis found that organizations offering health insurance experience stronger productivity, higher retention and greater profitability. Access to health insurance improves health outcomes, which in turn raises productivity. The correlation comes as no surprise. Employees who feel supported are motivated to do more at work.¹
Where employee coverage meets business growth
In 2024, Americans said their biggest financial worries were unexpected medical bills and the rising cost of healthcare. Nearly 4 in 10 adults (41%) reported carrying debt from unpaid medical or dental expenses.
Offering healthcare coverage can certainly reduce employees’ financial worries. When coverage is in place, workers avoid debt from emergencies and routine care. This sense of financial security lowers stress and allows people to stay focused at work.²
Think of healthcare coverage as a win-win for you and your workforce
- Less sick time – Preventative care means fewer sick days, less disruption and higher productivity for your business.
- Support for families – Reliable coverage keeps parents from missing work, reducing absenteeism and boosting consistency.
- Better chronic care – Employees managing ongoing conditions stay engaged and focused, helping your operations run smoothly.
- Mental health support – Access to counseling and services reduces stress, improves focus and strengthens resilience across your team.
- Stronger engagement – When employees feel valued, they respond with loyalty and effort. A high retention rate translates into a 22% increase in overall profitability.3
- Peace of mind – Financial security reduces distraction, allowing employees to stay focused on driving business results.
How employers can afford to offer coverage
It’s easy to view benefits as a cost, but research from MIT shows that health and happiness at work aren’t extras—they are key drivers in whether people join, stay or leave a job.4
Investing in coverage can often save your organization money. In 2024, the average annual cost of employer-sponsored health coverage was about $8,951 per single employee.5 By contrast, the cost of replacing an employee was 1.5 to 2 times their salary once recruiting, onboarding and lost productivity were factored in.6 Retaining even a few people with healthcare insurance can more than offset the cost of coverage.
There are also proven ways to manage expenses. Wellness programs promote healthier lifestyles that can reduce claims over time. Telehealth and virtual visits give employees faster, more affordable access to care while avoiding expensive ER trips. Cost-sharing tools, like health savings accounts, provide flexibility for employees and help control employer spending. And by working with a trusted partner like Highstreet Insurance Partners, you can design coverage that fits your workforce without paying for extras no one uses.
Looking ahead, prevention delivers the greatest savings. Early care lowers the risk of expensive treatments down the road. A thoughtful mix of traditional coverage and modern solutions like virtual care can balance quality with affordability. In addition, joining industry associations expands your risk pool and improves rates. Just as important, clear communication ensures employees understand their benefits, leading to smarter choices, fewer unnecessary claims and lower overall costs.
Covering the essentials and evolving benefits
Healthcare plans are more than doctor visits. They include dental, vision, prescriptions and preventative care. Combined, these reduce sick days, boost focus and support families.
Forward-thing employers are even looking beyond the basics. They are tapping into innovative programs to help attract talent and support wellbeing.
- Virtual care – Expands access to doctors and specialists through telehealth services
- Mental health programs – Provides counseling, therapy and resources to support wellbeing
- Wellness stipends – Gives employees funds to invest in fitness, nutrition or other healthy activities
- Family-friendly leave policies – Offers paid time off and flexible schedules to support caregivers
- Flexible coverage options – Adapts plans to diverse employee needs, making benefits more inclusive
- AI-driven health coaching – Uses data to personalize guidance on lifestyle, nutrition and exercise
- Caregiver benefits – Supports employees caring for children or aging relatives, reducing stress and absenteeism
These pillars can show your employees you value their total health, not just their hours at work. It’s a statement about the kind of workplace you want to build. When employees know you care about their health, they bring their best selves to work. That spirit spreads, shaping culture, boosting morale and strengthening community.
Coverage today, competitiveness tomorrow
At Highstreet, we believe employee healthcare benefits are about more than compliance. They’re about partnership, care and possibility. We work with businesses of all sizes to design coverage that fits your people and your business goals.
When your people feel cared for, your business doesn’t just survive. It thrives. Connect with your local Highstreet agent today to explore benefits that protect your team and position your business for long-term prosperity.
Sources:
- 7 Top Employee Benefits to Boost Productivity, According to Science, Jandra Sutton, Forbes, Jul. 1, 2024
- Health Insurance Facts and Statistics, Les Masterson, Forbes, Jan. 2, 2025
- The State of Global Workplace: 2024 Report, Gallup, 2024
- Creating a Happier Workplace is Possible and Worth It, Jennifer Moss, Harvard Business Review, Oct. 20, 2023.
- 2024 Employer Health Benefits Survey, The Kaiser Family Foundation, 2024
- The True Cost of Employee Turnover in 2025, Laura Bohrer, Lano, Jan. 22, 2024
