It is no surprise that a person’s physical and mental well-being can affect their overall performance at work. When you aren’t feeling 100% yourself, how can you be expected to give 100% of yourself? From a business owner’s perspective, employees working at their very best capacity is what will help the business function the best and lead to the most profits for the business. It seems obvious that taking interest in employees’ health and well-being should be a top priority since it leads so directly to the health and well-being of the company.
The problem facing business owners today is the rising costs of healthcare benefits, making it more expensive to provide. McKinsey & Company, a global management and consulting firm, conducted a U.S. Employer Health Benefits Survey of 1,640 employer-benefits decision makers. It reported that 60% of respondents were experiencing healthcare cost increases that outpaced inflation in the past three years, and 63% expect that trend to continue.
In the midst of so many other rising costs, it may seem like an easy fix to simply cut back in this area. However, healthcare is something many employees rely on through their companies and reducing benefits or cutting them altogether to save on costs may be counterproductive. If employees suddenly no longer have access to services they once relied on, it may not bode well for their performance at work, thus losing the company the profits possible from an efficient job well done.
So, the question becomes not whether to cut those benefits, but rather how to save on the cost of those same benefits to reduce the negative impact on employees. One of the easier strategies is simply enhancing communication surrounding employee benefits so that employees are better aware of what benefits they have and how to access them. Similarly, an open line of communication about what employees do need can help businesses allocate their healthcare costs more effectively. Employees knowing what is available to them, and how to access it, will decrease the possibility of a company wasting money on services the employees don’t need or want.
To optimize cost-effectiveness, it’s important to evaluate currently available benefits, and decide if new options are needed to fill any gaps. Redesigning existing benefit offers to better fit organizational needs is also an option. When companies are strategic about this, they can end up with great results.
According to the McKinsey survey, high-deductible health plans (HDHPs) are among the top three plans offered by employers. The total jumped from 17% in 2011 to 32% in 2021. Employers responding to the survey report said they consider HDHPs to be effective cost management options. Companies are also helping their employees navigate HDHP provider choices to increase awareness and acceptance of these benefits.
Another trend businesses are looking into is offering specialized health management programs. These are offered by third-party vendors or health insurers. Examples include classes or seminars on health topics, weight loss programs, on-site vaccinations, exercise classes, counseling or Employee Assistance Programs (EAPs). Investing in these types of programs can help to expand on current benefits offered, bettering overall employee health and wellbeing. While investing in programs like these may be an extra expense, they may help cover gaps in a company’s current health plan.
As companies seek to balance cost and employee satisfaction, they are seeking wider options for healthcare coverage. Looking at current offerings, and possibly trying new strategies can be a good place to start reducing healthcare costs. If you’re looking to save on your personal costs, here are eight ways to cut your personal health care costs, from switching to generic brands to effectively using your own benefits.
