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Companies in the UAE are shifting their focus away from cost-cutting to support the health and wellbeing of their staff after the pandemic, according to a survey by HR and payroll solutions provider Bayzat.
The survey found that 67 percent of businesses in the country have increased their allocations for medical insurance premiums per employee to improve healthcare coverage. Overall, corporate spending on healthcare premiums has gone up by 31.4 percent.
Among the companies that have opted to improve the insurance coverage for their staff, more than half (56 percent) moved to better providers. The remaining 44 percent decided to stick with the current providers or move laterally to equivalent providers while opting for plans with greater benefits.
“Businesses are turning their attention away from cost cutting to strategies that enable them to attract and retain the brightest talent,” Bayzat said. “The pandemic has shone a spotlight on the importance of health and wellbeing.”
Technology and consulting firm Accenture had said in a 2019 report that companies that offer a great employee experience outperform the Standard & Poor’s (S&P) 500 by up to 122 percent. It also noted that companies with highly engaged workforces are 21 percent more profitable than those with low engagement levels.
Better healthcare
With the increased spending, Bayzat’s report said many employees are now able to gain access to a wider network of clinics and hospitals, improved maternity cover, alternative medicines treatment, higher annual limits and dental, as well as optical cover.
The survey also found that the majority of companies in Dubai (65 percent) now offer medical insurance coverage for their employees’ dependents despite the absence of a law that requires firms to extend healthcare benefits to workers’ family members.
“With remote work dramatically expanding employees’ job prospects, the onus is now on organisations to make themselves as attractive as possible to existing staff and potential hires,” said Ahmad Bayaa, chief operating officer at Bayzat.
He said companies need to go beyond basic insurance coverage. Bayzat’s data showed that dental, specialists, gynaecology and obstetrics are the top three among UAE employees’ insurance reimbursement claim requests.
“If companies can cater to these needs, they can create a compelling health and benefits package for their employees,” Bayaa added.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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