Business owners have no shortage of expenses. Chief among these are employee benefits. This past year, the average health care cost for large companies was approximately $11,000 per employee, according to the Kaiser Family Foundation, which is up from last year. Employees are contributing more of their earnings to health insurance as well, as average out-of-pocket costs for full-time workers rose to just over $2,200 this year from $1,955 in 2014.
Regardless of these cost challenges, however, the vast majority of employees want coverage and consider it to be fundamental to their happiness. Nearly two-thirds of workers believe their health and welfare benefits are crucial to their satisfaction in the workplace, according to survey data from the Society for Human Resources Management.
It isn't just the basics that workers want for health insurance, either. Nearly 70 percent want dental coverage and nearly 55 percent want vision insurance, based on SHRM polling numbers.
Even though cost considerations can make offering a full boat of health coverage challenging for business owners – whether large or small – they understand that it's something workers have come to expect. Additionally, employee benefits help to stimulate engagement, prompting workers to be more motivated to produce a quality product.
There are a number of things employers can do to mitigate cost challenges, but none are more effective than through incentives:
Financial incentives
Employer-sponsored wellness programs can encourage workers to be good stewards of their long-term well-being. On average, every dollar that's invested in employee wellness programs yields approximately $4 in savings. This comes through reduced employee absenteeism – i.e. sick days – more robust productivity and decreased health care spending.
Encourage prevention
Founding father and inventor Benjamin Franklin is believed to have said, "An ounce of prevention is worth a pound of cure." Because most employee benefit programs pay for things like physicals, wellness checkups and screenings, business owners should be sure to encourage their workers to use their preventive care benefits, decreasing their susceptibility to disease or illness.
Provide online tools
Reams of information are no more than a few keystrokes away at any given moment thanks to the Internet and mobile technology. Employers are strongly advised to advertise the online tools that employees have at their disposal through employee benefits programs. These allow them to become smarter health care consumers.
Recommend generic prescriptions
Thanks to generic pharmaceuticals – which are identical to brand name medicines – prescription drug costs are more affordable. Business owners and human resources representatives should be sure to remind their workers about this fact, saving themselves hundreds of dollars per year in out-of-pocket spending.
Consider offering on-site professional health resources
Studies show that people who exercise regularly tend to be more productive in the workplace. Time constraints can make daily physical activity a challenge, however. To make things easier, employers should consider offering health center resources, staffed with personal trainers or health coaches. That can make seeking care more cost-effective and convenient.
Take a look at this infographic for a visual representation of what's been referenced:
