Review employee benefits in Kenya for tangible value

The employer and employee relationship ideally is one which is mutually beneficial, designed to ensure there is tangible value for the worker, with the expectation that this will yield similar work output for the employer.

Most of the Human Resource managers I have interacted with know that this balance is not always the case with the challenge being to identify the right benefits, for a diverse range of employee needs, and at the right cost for the organisation.

Research shows that healthcare benefits have a positive effect on recruiting the best talent, improving workers’ productivity and thus the organisation performance.

Insurance is all about pooling and pricing of risk, insurance providers must take time to study the dynamic needs of different demographics and suggest the right product.

For example, if your employee population is largely delivery people, who travel on motorbike and at risk of accident then the proposed cover should be different from that of a supermarket with customer service employees in the aisles.

As surprising as it may be, millennials are certainly more health conscious than most of their predecessors, However, engagement with them by insurance and health stakeholders has been off target in terms of messaging in-line with their lifestyle and trend preferences.

Employers need to work with their providers to initiate discussions around preventative health care to manage lifestyle related illness in this young group.

For example, using smart devices that collect running or step information could be part of the workplace to encourage young people to use stairs instead of lifts.

The benefit to the employer for such a challenge could come in through reduced operational costs, and more importantly potentially reduced cases of absenteeism and burnout.

In considering retirement, pension funds are a key employee benefit and the objective for the employer is to ensure that workers have a dignified life on exit from employment.

However, it is commonplace to find that these funds are insufficient to cover both the livelihood and health expenses of the retirees.

Thus the rationale for practical post retirement insurance products specifically earmarked for health in old age, allowing workers to directly ‘fix’ the funds of their old-age health expenses in their peak performing years.

The argument for non-formal employment must take a similar angle. The proposed universal healthcare and the reforms at National Health Insurance Fund (NHIF) seek to bring this to a reality.

Most Kenyans view NHIF as a tax, and even the layman felt the impact of the increase in monthly premium and/or policy changes affecting the number of family members covered under principle holder.

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This cover on its own is not adequate. For universal healthcare the main challenge is how to bring the uniqueness of every individual and family member with their peculiar health histories and needs into a structured and well regulated cover.

The post retirement medical fund – Afya Akiba by Minet Kenya, is one of the pioneer products for the retirees. It allows them to save for retirement medical costs while employed.

Sadly, the uptake has been limited, and this is because of the “short-term” perspective – we do not want to focus on retirement. The Retirements Benefit Authority is also working on guidance notes to make such funds compulsory for workers.

It is my view that if we are able to pay for car, house, even pension premiums, then surely saving for medical expenses is a natural progression that we must embrace always remembering that good health is the number one resource in your portfolio. Manage it devotedly.

Patricia Kiwanuka CEO Revenue Stream.