March 10, 2015
One of the decisions employers must make when a company grows in size and starts behaving like a corporation, is the whether to acquire group motor insurance for its employees. Usually, Insurance companies target large companies that do not have group motor insurance arrangements. The challenge is that smaller companies that have the numbers insurance companies require for group insurance may not be visible to the insurance companies. Therefore, such companies must take the initiative to invite insurance companies to make a pitch. This article examines the benefits that may accrue to such companies from getting a group motor insurance policy for their employees.
When your employees realize that you have a car insurance scheme for them in mind, you will notice a growth in morale among them. The point is simple. Group auto insurance is usually cheaper than privately negotiated motor insurance policies. Therefore the employees will quickly see how your plans will benefit them and the result will be increased morale. However, note that morale is a dynamic issue and it may change at any time. The long-term benefit you will get from increased morale is a silent acknowledgment by employees that you have their interests at heart.
Lower Staff Attrition
Many organizations struggle with staff retention even in saturates labor markets. Kenya has a high unemployment rate, which gives false assurance to employers that they will always find people to replace staff who leave. The problem is that it is expensive to hire a new employee. Estimates from HR practitioners indicate that hiring and training a new employee may cost an average of six months’ pay, not counting the potential for lost business in the interim. A group motor insurance cover is one of the benefits that can help a company to develop an effective staff retention policy because of the lower costs of the premiums employees will enjoy. To them, this is a cost saving that increases their disposable income.
If your employees feel settled in the work place, they are likely to work harder in their jobs. Employees that benefit from the group motor insurance scheme will feel the need to give back to the company because of the costs savings they make through lower premiums. In turn, their productivity will increase and will make it easy for you to achieve your organizational goals.
Improved Job Security
One element that many employees hope to get with every opportunity is job security. The truth is that job security is becoming rarer with time. When your company chooses to institute a group motor insurance scheme for your employees, the message they get is that you have their long-term interests in mind. To employees this contributes towards a sense of permanence that comes with job security. If employees know that you are taking a long-term approach in business, they will feel that their future is secure, and as a result, you will have a very committed staff.
Get more insurance insights from InsureAfrika