Role of Employer-sponsored Health Insurance Benefits in Employer Attractiveness: Literature Review and Emerging Issues

Abstract

Employer-sponsored health insurance benefits are essential for employee productivity, performance and employee well-being. However, increasing health insurance costs are a primary concern for employers and employees alike. Despite its importance, there is a lack of research on employer-sponsored health insurance benefits from the perspective of employer attractiveness. To address this gap, we reviewed the literature on the importance of health insurance benefits in enhancing employer attractiveness. In addition, we discussed emerging issues related to health insurance benefits for future research. These issues involve increasing employee contribution to employer-sponsored health insurance benefits, customised health insurance benefits plans, health benefits communication and the issue of health benefits administration sludge which impacts employer attractiveness. We also proposed a model related to employer-sponsored health insurance benefits variables and employer attractiveness, which can be tested in future research.