The bottom line on employee health
Changes in the health care industry are making businesses rethink traditional cost saving strategies. Medical and prescription drug costs are now taking a back seat to a more significant cost driver—presenteeism. According to a report published by the Harvard Business Review, presenteeism is costing companies more than $150 billion per year in lost productivity.(1) As health care costs continue to rise, businesses must look to reduce costs through forward-thinking strategies that focus on overall health management and controlling the impact of presenteesim. After all, presenteeism might be putting a significant strain on your bottom line.
What exactly is presenteeism and how does it impact your business? In short, presenteeism is the term used for employees who show up for work and perform below capacity due to illnesses. Chronic conditions like pain and depression are among the leading drivers of presenteeism—and they’re costing companies money in the form of lost productivity. Productivity losses due to employee health are giving researchers and businesses a broader view of the current health care landscape. As the impact of presenteeism becomes clearer, forward-thinking businesses are taking action quickly—and they’re starting to invest in employee health. The reason is clear and simple: a healthy workforce leads to a healthy bottom line.
Keeping costs under control
According to a report funded by the National Pharmaceutical Council, a Texas-based employer saved an estimated $105 million over a three-year span by reducing presenteeism and absenteeism through specific initiatives.(2) This report does more than illustrate the connection between employee health and financial performance—it demonstrates the enormous power businesses yield at controlling health care costs. As health care providers continue to provide more tools for managing chronic conditions, it’s up to you to give your employees the resources they need to stay healthy. In today’s changing health care landscape, it’s all about health management and healthy living. In short, it’s about preventing the onslaught of serious conditions and keeping chronic illnesses under control in order to save your business money over the long run. With real solutions starting emerge over the horizon, what can your business do to control health care costs?
Solutions for your business
Businesses of all sizes can benefit by adapting to the changing health care paradigm. The keys are to (1) create a culture around total health management, (2) focus on reducing long-term health care costs, (3) reduce the impact presenteeism, and (4) select the right health care partner.
Creating a culture around total health management
Creating a culture that drives employee health forward ultimately drives your business forward. Often, employees are fearful of making a call to the doctor’s office or checking prescription information while at work. Removing these fears by encouraging your employees to take care of their health is in your best interest—even if it’s on your watch. By giving your employees the flexibility to manage their health, you’ll not only reduce stress on the job, but you’ll also save your business money in the long run.
Focusing on long-term health care costs
Managing health care costs over the long run translates into long-term cost savings. As a result, it’s important to invest in a healthy workforce today. By focusing on preventive care and health management now, you’ll be able to keep your employees healthier longer. With healthier employees, you’ll find that they’ll spend less time—and less money—responding to neglected (or even preventable) illnesses.
Reducing the impact presenteeism
As health care costs continue to rise, businesses must begin looking at how to reduce long-term costs by controlling presenteeism. The first step in controlling costs associated with presentessim is to understand the link between employee health and productivity. Once you make this connection, it’s important to provide your employees with the tools and resources to help them stay healthy and on top of their existing conditions.
Select the right health care partner
Today, health care providers are focusing on total health management. Providers that understand the changing health care paradigm are providing members with a wide range of health management and healthy living tools online through a sophisticated system of care. The goal for your business is to find the provider that suits the needs of your workforce—and helps your business build a culture of healthy living.
The advantage of a healthy bottom line
A healthy workforce does more than create a happy workplace—it provides your businesses with a competitive advantage. By focusing on total employee health, you’ll not only get a healthier workforce, but you’ll also benefit from increased worker productivity. With increased productivity, you’ll get greater efficiency and long-term cost savings—and that’s good business.
1. Hemp, Paul, Presenteeism: At Work--But Out of It, Harvard Business Review, Oct 1, 2004
2.Ronald Loeppke, MD, MPH, Et Al Health and Productivity as a Business Strategy, American College of Occupational and Environmental Medicine, 2007.
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