Friday, February 17, 2012

Cos Wipro, Philips, Intel and others line up huge changes in medical benefits to attract talent

BANGALORE: Companies line up enormous changes in medical programs in an attempt to herd home to keep and attract talent. While some offer flexible packages, concierges available to others.

This year, a healthy worker is a sign of a rich man. With a weak economy crippling increments and promotions companies have started betting on the health and medical benefits to rein in possible shifting loyalties. They are also looking to attract talent with a new medical benefits package.

"Medical inflation skyrocketing and companies have realized this is the right thing to do. Not all groups are hospitals where an employee of the health care bills are subsidized, so the next best option is to provide them with as many benefits as possible to keep competitors at bay, "says Anand Shankar, CEO of Aon Hewitt India.

Twice as many customers have approached the company in the first two months of this year compared to last year to tweak their health.

"The window to continue their compensation is closed and this is a slow year. One can not throw in steps and these are smart ways of working around it," says a senior executive of a consulting firm that will not be mentioned.

For the first time this year, Wipro Technologies has a row of enormous changes in medical reimbursement policy. These include an increase in the sickness of the RS 3 lakh to Rs 5 lakh at all levels, compensation for personal medical policies and OTC medicines, and the ability to proceed with part of the policy even after the company .

The company has made to the clauses where overnight hospitalization is necessary, because there are treatments that do not require the patient to a hospital visit for more than a few hours. The idea arose from the fact that many of his employees to opt for alternative therapies and treatments like in vitro fertilization.

"In recent months that the policies are implemented, certain turnover is lower, but this alone it is difficult to correlate with medical benefits," said Samir Gadgil, general manager, talent engagement and development.

Retention strategy is entangled in a part of the policy. For example, while an employee can continue his medical benefits, even if he leaves the company, he would pay a much higher premium than the subsidized one of the company offers.

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