Attracting top talent is more important than ever – as is retaining that talent once they are securely at their desks. 

One compelling employee benefit that convinces high-performing staff to join a business is the provision of wellness incentives, such as health insurance. 

A recent MoneyFit.me survey of BusinessDesk readers found that out of 117 responses, 49 offer some form of health-related benefits. 

A further 29 respondents indicated they would consider offering health-related benefits if fringe benefits tax (FBT) were removed for these employee benefit types. 

It’s a sentiment I hear often in the employee wellbeing space. 

Stress compounds

Most employers are navigating a mix of competing people-related costs – wellness wallets, subsidised counselling, EAP, ad-hoc wellbeing budgets – and trying to determine which combination delivers value to their staff. 

When we break down the long-term impact of this wellbeing juggling act, employers often realise that while these options can be helpful, they rarely deliver value at the depth or scale of a group health insurance plan. 

Though it is the costlier option in dollars and cents, in the long term and with a view to employee perception and general satisfaction with their employment, it often skews towards health insurance as the better option. 

What’s interesting, and a little disappointing, is that 33% of survey respondents shared they don’t currently offer any health-related benefits. That’s a third of New Zealand workers relying entirely on themselves to stay well enough to work, pay their bills, and contribute productively to their workplace. 

Stress compounds, and a lack of health support can lead to reduced productivity, more sick days, and a less positive workplace culture. By contrast, businesses that invest in wellbeing early are likely to build stronger teams but also attract and retain higher-quality employees. 

For employers, I see this as a win-win opportunity. But for employees, that 33% of businesses is a potential gap in their life and career security. 

So why does the gap exist? FBT is a potential barrier – from the perspective of the employers I speak with every day, there is also a lack of awareness and perceived value of health insurance as an employee benefit regarding this additional expense. 

The moment FBT comes into the conversation, many employers need to rerun the numbers, go back to their finance teams, and ultimately, as shown by the MoneyFit.me survey, for around 25% of businesses, it is a roadblock. 

Still, those who choose a group health insurance plan see their investment pay off – employees feel that sense of value, knowing their employer has them covered. 

It becomes even more of a benefit as employees get older and their income increasingly becomes their most valuable asset. 

'Sticky'

I think this also creates a strong positive association with the business, where group health insurance is a “sticky” benefit that employees don’t want to lose and actively seek out from career opportunities. 

Ultimately, this kind of wellbeing initiative supports retention, engagement and productivity, while caring for the workplace as a whole. 

Beyond the costs, for most people, the actual value comes down to earning power; their income is their greatest asset. 

Health insurance is an effective way to protect that asset, keep people healthy, minimise downtime, and support quicker recovery from illness or surgery. Suddenly, a $20,000 procedure that would derail an employee’s financial future – and their work productivity – is covered without the added stress. 

In my opinion, ad-hoc benefits like wellness wallets struggle to compete with this level of value. 

For employers, the real question becomes: Is the barrier really the cost, or is it the lack of understanding and appreciation for the value it provides? 

At a time when talent competition is fierce and only increasing, well-being initiatives like group health insurance aren’t just perks. 

They’re a sign of what a business truly values, and they signal clearly – to both current and future staff – that their wellbeing isn’t just an afterthought.