The cost of employer-sponsored healthcare continues to increase. In 2020, employee healthcare cost employers an average of $21,000 per employee. These high costs create a significant financial strain on businesses, especially smaller businesses. As a result many employers are looking for ways to reduce their healthcare costs. One of the most popular is with an employer-sponsored wellness program. Wellness programs are company-wide initiatives that encourage and support a healthy lifestyle that can reduce preventable illnesses. There are many ways that wellness programs save employers money, here are just five.
1. Lower Healthcare Costs
Studies have shown that for every dollar a company spends on wellness programs, it saves $6 on direct medical costs. While providing a healthier workplace, employees begin to lead healthier lives. That leads to a reduction in preventable illnesses that can drive up medical care costs. This is a significant cost savings that can help offset the increasing costs of employer-sponsored medical care.
2. Increased Productivity
Healthy employees are productive employees. When employees are in good physical and mental health, they are able to work harder and smarter. Wellness programs encourage productivity in multiple ways. First, it ensures your staff is healthy and active at work. Secondly, it increases company morale which leads to more engagement in work. Finally, it supports employee retention which helps prevent interruptions to employee productivity to train new staff.
3. Reduces Absenteeism
An extension of increased productivity, is the reduction in absenteeism. On average, studies have absenteeism costs employees $1,685 per employee. This is a significant cost that can be reduced by improving the overall health of your staff. Employee wellness programs improve the health of your staff. Thus, they simultaneously help reduce absenteeism. This can save you a significant amount of money every year.
4. Increase Employee Engagement
There are so many ways that wellness programs increase employee engagement. First, they reduce employee turnover because they show you care about your staff. Staff that feels appreciated is more likely to stay longer. Secondly, wellness programs help reduce stress which increase engagement. Finally, wellness programs also support mental health which increase morale and positivity. More positivity leads to greater engagement.
5. Supports Recruitment
Attracting the best employees is a challenge in the competitive job market. Offering benefits like a wellness program can make you a more attractive place to work. With quality staff, you will save money on hiring and training costs. An employee wellness program can make your company really competitive to ensure you get the best quality staff.
These are just some of the ways that a wellness program can help offset the increasing costs of medical care. Paired with an employer-sponsored healthcare plan, you will be able to save thousands each year for your business. To learn more, contact the team at National Insurance Partners Inc. We have a number of solutions that can help reduce the high costs of employer-sponsored healthcare.