The availability of health insurance can contribute to improved job retention and overall workforce stability, a recent study carried out by Tech cabal in collaboration with WhirlSpot Media and WellaHealth has shown.
The study underscores the significance of health insurance in the Nigerian context and how it influences job retention for employees and employers as organisations strive to retain their most valuable talent.
According to the researchers, the study employed a robust and comprehensive methodology with a sample size of 104 employees across various industries in Lagos, Nigeria, leveraging structured questionnaires and in-depth interviews to capture the deep perspectives of employees, ensuring a comprehensive understanding of the subject.
The survey shows that 93 percent of respondents value comprehensive health plans in their job contracts, but only 34 percent would scrutinize their availability when accepting an employment contract. 64.1 percent have never considered quitting over insufficient healthcare coverage while 66 percent say a lack of insurance wouldn’t affect their decisions to leave or stay.
However, the researchers said that More than half of the surveyed employees, specifically 52.5 percent, work in high-risk sectors such as manufacturing, health, construction and engineering, transport and logistics. 20.2 percent work in finance with standard health coverage and the remaining 27.3 percent are employed in retail, tech, media, tech, and education sectors
“Going by the NHIA Act, Nigerian employers with over five employees are legally obligated to provide health insurance coverage. Surprisingly, only 5 percent of workers in Nigeria had access to health insurance, as of 2019, with the biggest gap coming from the private and informal sectors.
“Although health insurance is not always the determining factor for employee loyalty, 34 percent of employees are willing to leave an employer for lack of healthcare insurance. The implication is that companies may suffer a 34 to 36 percent employee turnover which is concerning. Therefore, the availability of health insurance can contribute to improved job retention and overall workforce stability,” TechCabal stated.
Olanrewaju Dunowo, lead researcher at TechCabal Insights, emphasizing the significance of the findings said, “Our study underscores the critical role of health insurance in employee job retention in Nigeria. By prioritising employee health and well-being, organisations can create a more stable and productive workforce.”
Also, Ikpeme Neto, founder of WellaHealth added that health insurance is not only an essential component of employee benefits but also a strategic investment in the long-term success of organisations.
Meanwhile, the study according to TechCabal enjoins employers and policymakers to recognise the untapped potential of employee health insurance in promoting job retention and driving workforce stability.