Health Insurance - Trouble Recruiting and Keeping Talent? Your Skimpy Health Insurance Is a Likely Cause
Millennials, just like their parents and grandparents before them, want
good health insurance, help saving for retirement and vacation time
The most important decision your company will make for its bottom line just might be the health and wellness program it chooses.
Annual
global health spending is now over $3 trillion -- and growing rapidly. A
good portion of that is driven by millennials, who have both a strong
interest in personal wellness and, thanks to the Affordable Care
Act (aka, Obamacare), an 86 percent coverage rate (more than 50 percent through individual plans, their parents’ plans or Medicaid). For those in or entering the job market, health insurance is an expectation.
In an April 2017 study, Fit Small Business found
that the benefit millennials want most from their next company is
health insurance. These numbers were confirmed in a 2018 by the Benenson
Strategy Group in a poll that asked millennials if they would choose better insurance or a 10 percent pay raise.
The majority opted for health insurance. Health insurance also placed
first out of nine possible employee benefits in the survey, followed by
retirement account contributions and vacation.
The desire
for health benefits is not surprising, given the increasing costs and
complexities of the ACA and the new, somewhat cheaper, far
less-comprehensive plans being promoted by the current administration,
both of which are enough to make anyone sick…and confused. Thirty-five percent of millennials
said that they were not at all or not very informed about the health
insurance options available to them, with that number rising to 55
percent for those who were uninsured.
Choosing a health plan is complicated, but hiring talented people is
getting more difficult as unemployment rates fall. When the largest
demographic in the workforce say they view good, free (or at least
low-cost) health insurance as critical part of their job selection,
companies better have it.
Health insurance is an expensive investment. Despite the
seemingly endless stream of articles on how health technology will lower
costs and save us all, the numbers continue to rise. The PwC’s Health
Research Institute estimated that the overall cost for employers will go
up by 6 percent in 2019. However, this number is small compared to
expected increases for those purchasing healthcare from the ACA
marketplace, where premiums are expected to rise between seven and 30
percent higher nationally. Look out, gig economy!
Despite the costs, organizations are increasingly focused on the value on investment (VOI)
that health and wellness programs bring. Employers recognize that
having a healthier workforce goes far beyond lowering medical costs.
They are taking a holistic view of the range of outcomes impacting the
bottom line, including: worker morale, employee turnover, employee
loyalty, tenure, etc..
Between the skyrocketing costs of
health and wellness programs and the reputation millennials have for
leaving their jobs, the question to ask is, “Is it truly worth the
investment?”
Here are three reasons why these programs are worth every penny:
1. Productivity
According to the CDC Foundation, productivity losses linked to absenteeism cost employers almost $226 billion,
while costs for "presenteeism" -- showing up for work when you are ill
or injured -- is estimated around 10 times as much. While you may think
your staff is doing you a favor by coming in with a cold (or, dare I say
it, a hangover) think again. It is estimated that while staff took off
only four days ill, they lost 57.5 days to presenteeism. Meanwhile it’s
estimated that companies with established health and wellness programs
save the equivalent of an additional productive workday per month.
2. Increased employee engagement
A recent Optum and National Business Group on Health survey found
that employees who participate frequently in health and wellness
programs are, compared to employees who never participate, 88 percent
more likely to feel valued by their employer; 18 percent more likely to
take responsibility for their health and well-being; and 45 percent more
likely to rate their work performance as higher than co-workers -- all
markers of greater employee engagement.
Wellness
programs demonstrate to staff that their employer cares and also
creates opportunities for greater connection among staff, increasing
both loyalty to employers and staff engagement.
3. Healthy (and happy) staff stay longer
Wellness
programs are not a magic wand, but they go a long way to improve
retention. When an employer tailors a wellness program to the needs of
their employees, they are implicitly saying they are important and their
health and well-being matter. It’s little wonder that in a 2017 Metlife Employee Benefit Trends Study,
61 percent of employees said that they would be more likely to take a
job with a new employer because of health and wellness benefits, and 59
percent said that these benefits are an important factor driving their
job loyalty.
Positive experiences are an important part
of organizational culture -- and retaining great talent. Though they can
find another job somewhere, staff will hesitate before leaving,
wondering if they will be treated and valued in the same way elsewhere.
3. Healthy (and happy) staff stay longer
Wellness
programs are not a magic wand, but they go a long way to improve
retention. When an employer tailors a wellness program to the needs of
their employees, they are implicitly saying they are important and their
health and well-being matter. It’s little wonder that in a 2017 Metlife Employee Benefit Trends Study,
61 percent of employees said that they would be more likely to take a
job with a new employer because of health and wellness benefits, and 59
percent said that these benefits are an important factor driving their
job loyalty.
Positive experiences are an important part
of organizational culture -- and retaining great talent. Though they can
find another job somewhere, staff will hesitate before leaving,
wondering if they will be treated and valued in the same way elsewhere.
source : https://www.entrepreneur.com/article/317783