Health goals can be part of appraisal cycle

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health insurance coverage for their employees to include extended benefits for household help, parents and parents-in-law, and are encouraging employees to set aside 10% of their annual objectives towards health goals, which in turn will impact their variable pay and bonus. The move is designed to ensure that health benefits are not just a ‘feel-good’ mechanism but are also designed to help curb employee attrition and measure performance.

Over the years, several measures have gained traction, including mandatory annual health check-ups, access to hospitals and therapists, insurance policies that look into a more fluid family structure where partners are included, and even gender surgeries. Now, things are being taken to a different level.

For instance, brokerage firm Motilal Oswal Financial Services has rolled out health and life insurance coverage for employees' household help and will also pay for the expenses incurred for vacations taken up by an employee's parents/parents-in-law. The company's chief human resources officer (CHRO) Niren Srivastava said that these non-monetary benefits are being offered from the new fiscal to employees who have spent at least five years with the company.

“About 15% of the employees can access them, who meet the eligibility criteria," Srivastava said. “We estimate that these measures will help us bring down attrition, which was ~52% in FY24, and about 40% in FY24.

Early trends are very encouraging." To manage attrition even when there is pressure on costs, firms are depending more on health benefits when counter offers for exiting employees and out-of-turn hikes impact their coffers. Aditya Birla Health Insurance, for instance, will amalgamate employee health goals into performance