How health cash plans can boost staff retention in the social care sector.

In today’s care sector environment, staffing challenges are intense. High turnover, recruitment difficulties and rising absence pose significant risks to service delivery and profitability. One way that care providers are gaining an edge is by offering accessible, everyday health benefits via a health cash plan. 

Why retention is so difficult in care? 

Working in care is demanding. Staff often work long shifts, perform emotionally taxing tasks, and crucially are among the lowest paid in the health and social care workforce. There will be local competitors who are trying to recruit your team, and they may even be offering 10p more an hour!

Replacing a care worker can cost thousands of pounds in recruitment, training and lost productivity. Investing in employee wellbeing is therefore not simply a “nice to have” but a business imperative. 

What a health cash plan offers 

A health cash plan enables employees to claim back costs for everyday healthcare, including dental, optical, physiotherapy, virtual GP visits, and, in some cases, counselling. 

It’s immediate: there is no major underwriting typical of private medical insurance. That means staff can feel supported quickly.   

For a care provider, this kind of benefit can level the playing field: if your workforce is engaged and healthy, they are absent less, and feel valued, your retention rate improves. 

I always recommend heath plans being used as a day one benefit for a number of reasons.

The business case:

• When staff feel valued, they are less likely to leave. A health cash plan signals “we care about you”. 

• Fewer minor health issues become major problems when staff access care early. This means fewer sick days (a costly issue).   

• Having a benefits package tailored to the care sector builds your employer brand in a competitive market for staff. 

• There is a strong gender imbalance in the social care workforce. In England, women account for over 80% of the workforce, though this proportion is lower in senior management roles (62%)
  
  Why is this important when putting forward a business case for a company-funded health plan?…

1. Free Child Cover Supports Working Mums

With over 80% of the social care workforce being women—many of whom are also primary caregivers—offering a health plan that includes free cover for children up to age 24, is a game-changer. It reduces financial stress and enhances the perceived value of the benefit, especially for single parents or those with large families.

2. Menopause Support:

A Must-Have for a Female-Dominated Workforce

Menopause can significantly impact productivity, absenteeism, and mental wellbeing. With only 62% of senior roles held by women, providing menopause-specific support through Employee Assistance Programmes (EAPs) and counselling (included in most health plans) helps retain experienced female leaders and supports career progression.

3. Mental Health & EAPs: Tailored for Emotional Labour

Social care roles are emotionally demanding. Women in these roles often face higher rates of burnout. A health plan can include 24/7 mental health support, counselling, and stress management tools—vital for a sector where emotional resilience is key.

4. Preventative Care = Reduced Absenteeism

Routine dental, optical, and physio support—core features of a health plan—help catch small issues before they become big problems. This is especially important in social care, where physical health directly affects the ability to work. Fewer sick days = better continuity of care for clients and lower costs for employers.

5. Digital Access Empowers Part-Time and Shift Workers

Many women in social care work part-time or irregular shifts. Medicash’s user-friendly app, virtual GP access, and digital tools like in-app claiming make it easy to manage health on the go—no need to take time off for appointments. Ideal for domiciliary care workers and shift workers.

Implementation tips for care providers 

• Communicate the benefit clearly: many staff may assume they won’t qualify or believe it’s only for senior employees. 

• Choose a provider who supports easy claims and offers a strong employee experience (so you maximise utilisation). 

• Monitor usage and link to retention/absence metrics: show your board the value. 

• Engage staff: make the benefit part of your wellbeing culture, not just an add-on. 

• Line manager training on mental health awareness

• Anonymous feedback tools or pulse surveys

• Regular internal communications promoting wellbeing

Final Thoughts…

Health Plans can start from around £4.00 per employee per month. (Less than a Costa Coffee!)

For care organisations facing staffing pressures, a health cash plan offers tangible staff-benefit value. It’s affordable, accessible and aligns with the wellbeing narrative your workforce needs.

If you’re looking to boost retention, reduce absence and stand out as an employer of choice, it may be time to review your employee benefits strategy.

By taking action now and building a flexible, inclusive and outcome-driven approach, you can create a culture where people (and your business) thrive.

Need help designing a wellbeing programme that fits your organisation’s size, budget and goals? Book a free, no-obligation consultation with Pegasus Health’s independent advisers today.