By Chinenye Anuforo
In today’s competitive job market, employee retention has become a top priority for employers.
While a generous salary and fun office perks may have sufficed in the past, a recent study by TechCabal in collaboration with WhirlSpot Media and WellaHealth has unveiled a hidden factor that can significantly impact job retention in Nigeria.
As organizations strive to retain their most valuable talent, the study underscores the significance of health insurance in the Nigerian context and its implications for employees and employers. It provides data-driven insights to determine how health insurance influences job retention among Nigerian employees.
The study employed a robust and comprehensive methodology, encompassing a substantial sample size of 104 employees across various industries in Lagos, Nigeria. By leveraging structured questionnaires and in-depth interviews, the researchers were able to capture the nuanced perspectives of employees, ensuring a comprehensive understanding of the subject.
More than half of the surveyed employees, specifically 52.5%, work in high-risk sectors such as manufacturing, health, construction & engineering, transport & logistics. 20.2% work in finance with standard health coverage. The remaining 27.3% are employed in retail, tech, media, tech, and education sectors.
The findings of the study are as remarkable as they are revealing.
According to the survey, 93% of respondents value comprehensive health plans in their job contracts, but only 34% would scrutinize their availability when accepting an employment contract. 64.1% have never considered quitting over insufficient healthcare coverage. While 66% say a lack of insurance wouldn’t affect their decisions to leave or stay.
Going by the NHIA Act, Nigerian employers with over five employees are legally obligated to provide health insurance coverage. Surprisingly, only 5% of workers in Nigeria had access to health insurance, as of 2019, with the biggest gap coming from the private and informal sectors.
The findings of this study hold significant implications for both employees and employers in Nigeria.
Although health insurance is not always the determining factor for employee loyalty, 34% of employees are willing to leave an employer for lack of healthcare insurance. The implication is that companies may suffer a 34-36% employee turnover which is concerning. Therefore, the availability of health insurance can contribute to improved job retention and overall workforce stability.
Hence, employers must strive to strike a balance between employees’ salaries and an optimal level of health coverage to address their concerns about nominal income and real income. This means enhancing the minimum insurance coverage to meet the healthcare requirements of their workers, thus promoting their overall well-being.
Olanrewaju Dunowo, the Lead researcher at TechCabal Insights, emphasized the significance of the findings, stating, “Our study underscores the critical role of health insurance in employee job retention in Nigeria. By prioritizing employee health and well-being, organizations can create a more stable and productive workforce.”
Mr. Ikpeme Neto, Founder of WellaHealth, added, “Health insurance is not only an essential component of employee benefits but also a strategic investment in the long-term success of organizations. Our study emphasizes the need for employers to recognize its positive impact on job retention and overall business performance.”
This study offers valuable insights into the ever-evolving labor market, providing practical recommendations, expert analysis, and compelling statistics. It enjoins employers and policymakers to recognize the untapped potential of employee health insurance in promoting job retention and driving workforce stability. By prioritizing the health and well-being of employees, businesses can unlock a competitive advantage that transcends mere financial incentives.