KN (AB Klaipėdos nafta), the operator of oil and LNG terminals, has included private health insurance in the package of employee motivational benefits this year as well. The country’s largest non-life insurance company Lietuvos draudimas provides this additional benefit to more than 360 KN’s employees.
“For the third year KN has been additionally insuring all its employees, regardless of their position or employment period in the company. According to the surveys of our employees, additional health insurance is considered to be one of the key components of the motivational package which significantly affects employees’ satisfaction with the organisation and loyalty. It is also important for our company that health insurance becomes kind of an additional incentive for employees to take care of their health and healthy lifestyle,” says KN’s HR Manager Simona Kutelienė.
A public opinion poll commissioned by Lietuvos draudimas showed that health insurance is the first choice additional benefit expected by employees from their employer: as much as 56 per cent of working respondents would prefer this type of insurance in addition to wages. It is one of the most important motivators and incentives to employees. The second most relevant motivational measure is a regular contribution to the pension fund paid by the employer (indicated by 47 per cent of working respondents).
According to the data of Lietuvos draudimas, averagely 92 per cent of insured employees take advantage of this benefit. Health insurance means insuring employees with the company’s funds by providing them with an opportunity to use the services of private health care institutions: receive treatment in selected clinics, visit specialist doctors, have various tests carried out, buy medications, and use other health promotion services.
“Employees and employers appreciate the fact that persons covered with insurance may use a variety of health services. For example, you do not have to wait in queues when you fall ill because health insurance provides an opportunity to use the services of private clinics and receive expedient medical consultation. The employer thus ensures a shorter sickness leave if the illness is diagnosed in time and the employee gets back to work earlier. Health insurance is mainly offered to employees in major Lithuanian and foreign capital companies, yet with the competition between employees increasing this benefit has been lately more often chosen by small and medium sized enterprises in order to attract and retain the best professionals,” commented Simonas Lisauskas, Director of Commercial Sales Department at Lietuvos draudimas.
Compared to 2017, last year the number of insured employees grew by 40 per cent, whereas in the first quarter this year the growth was as much as 27 per cent. This shows that employers have been actively using this efficient measure to enhance employees’ motivation. “Clients mostly appreciate an exceptional benefit of health insurance offered by Lietuvos draudimas – unlimited ambulatory assistance, i.e. the insured person may anytime and for any period covered with insurance seek medical aid when falling ill. Having covered employees with health insurance, employers may take advantage of tax reliefs and much more rationally use their finances by investing in employees’ health,” added Mr. Lisauskas.
Lietuvos draudimas forecasts that in the near future the country’s companies will be more often searching for ways to retain professional employees or attract new ones, therefore health insurance will become an integral part of the employee’s wages.
A health insurance contract between Klaipėdos nafta and Lietuvos draudimas has been signed through direct cooperation. The tender was won through the public procurement procedure having evaluated the submitted health insurance cost-efficient bids. The bid by Lietuvos draudimas was awarded the highest score and selected by the client as best meeting his needs. Klaipėdos nafta has been buying other risk coverage from Lietuvos draudimas for a number of years.
This year, in addition to health insurance, the KN motivational package to employees has been supplemented with payment of half of the annual premium in KN share. KN is the first state-run enterprise which made such a decision to increase employee involvement. Moreover, this year KN employees had a possibility to direct the remaining part of their annual premium to the third pillar pension fund.
