In today’s economy the most talented, productive employees have tons of options. So if you want to increase your odds of landing them, you’ll need to offer attractive employee health benefits as part of your compensation package. Not only will this help you hire the best candidates, but it will also boost your organization’s overall productivity.
Eighty-one percent of employees believe health and wellness programs supported by their employer would boost their productivity, and they’re right. Great employee health benefits boost productivity in several ways. They improve employee retention and engagement, reduce absenteeism and presenteeism, and conserve company resources.
Here are four reasons innovative employee health benefits improve productivity:
1. They inspire loyalty, increase retention and save time
Companies that offer good benefits enjoy a more loyal workforce. In fact, 71 percent of employees with great benefits feel loyal to their organization, as compared to the general average of 47 percent.
As your benefits improve employee loyalty, you’ll also see a boost in retention — a factor that significantly impacts productivity. When your retention rate is high, employees spend less time training and picking up the slack for new hires, who are inevitably less productive while they learn the ropes.
According to the results of a Harvard Business Review Study, when companies began offering comprehensive, competitive health care plans to their employees, “high-turnover companies” reduced their turnover by 25 percent and “low-turnover companies” reduced it by 65 percent. Clearly health benefits play a role in retention, which directly affects productivity.
And when loyal employees stay longer their increased tenure maintains relevant skills and knowledge, significantly increasing overall productivity. On the other hand, when employees leave you don’t just lose time training their replacement, you also lose their institutional knowledge.
2. They boost engagement and morale
Out of a group of employers that improved and better leveraged their benefits packages, 86 percent saw increased employee engagement. Why is this important? Employee engagement improves productivity by 22 percent, and results in 41 percent fewer product defects.
So how can you design a benefits package that will keep your employees happy, healthy and engaged at work? Programs that offer a range of options, from on-site health screenings to fitness classes to seminars and clinics, often play a positive role in engagement while also lowering stress levels (the top work-related health issue according to the CDC).
Providing flexible Health Reimbursement Arrangements (HRAs), Health Spending Accounts (HSAs) and Lifestyle Spending Accounts (LSAs) is another way you can enable employees to personalize their benefits and improve their entire wellness experience.
3. They reduce absenteeism and presenteeism
Effective and inclusive health benefits designed with relevant wellness programs improve attendance and reduce presenteeism, maximizing the time workers spend not only at the job, but also on the job. Both have profound effects on productivity.
In fact, presenteeism can reduce employee productivity by one-third, and absenteeism costs U.S. companies $225.8 billion each year — that’s $1,685 per employee.
The good news? Providing quality health benefits improves employee attendance, directly affecting productivity. Good benefits programs encourage employees to seek preventive care options on a regular basis, and this approach leads to needing fewer days off to recover from illness or injury.
In addition to cutting down on absences, employee health benefits can reduce the toll presenteeism takes on productivity. Group health plans that offer biometric health screenings, for instance, can identify illnesses, injuries or health problems that undermine job performance. Employees can then address these issues before they become chronic or long-term.
4. Bonus! They conserve resources
We know that offering stellar health benefits can increase productivity, inspire loyalty, and reducing both absenteeism and presenteeism. But that’s not the entire impact of good benefits. They can also help your company save money.
Companies that offer benefits are eligible for certain tax breaks, not to mention the fact that benefits-related preventive care can result in fewer costs for expensive medical procedures. In fact, studies show your medical insurance costs are likely to be 2.3 times lower than the cost of lost productivity.
Organizations that provide employees with stellar healthcare enjoy greater productivity. In fact, the CDC found that companies who offered “exemplary” health benefits “outperformed the S&P 500 between 3 and 5 percent.”
Want to learn how you can improve your company’s overall productivity with health benefits? Register for our upcoming webinar: How to use Benefits to Create a Culture of Health and Well-Being.