6 Reasons Why Spending on Employee Health Will Save You Money and More

As technology, globalism and the “machining” of the American worker continue to demand increasing productivity and cost savings, it’s common for businesses to skimp where they can in order to stay lean and competitive. And while the passage and implementation of the Affordable Care Act requires businesses to provide employees with healthcare, it still remains commonplace for businesses to offer the legal minimum in hopes of saving money. While cutting back is almost always a good business practice, where and how you cut back is very important. Research shows that not providing preventative care services as part of an employee health care package — while it’s cheaper in the short-term — will actually cost a business more over time.

If you want to radically improve your business prospects, it’s time to offer your employees better benefits and wellness incentives. From increased productivity to a more committed workforce, here are six reasons why spending more on your employees’ health will benefit your business’s bottom line.

Increased Productivity

One of the quickest routes to better productivity, regardless of the industry in which you work, is offering your employees a health benefits package that includes health-promoting programs and preventative care. Studies have shown that workplace health promotion programs yield an increase in productivity among workers. Not only does the increased productivity result in increased revenue, but when employees’ make use of provided preventative and health-promoting programs, the positive result in better health will also save you money over the long-haul, because your workforce will stay healthier, longer.

Less Absenteeism and “Presenteeism”

Absenteeism is a major problem in the United States. According to the Circadian, a conservative estimate regarding how much unscheduled absenteeism costs American businesses each year sits roughly around $3,600 per hourly employee annually and $2,650 per salaried employee each year. While absenteeism can occur due to a variety of factors, illness and poor health certainly play a large role, which should incentivize employers to provide the means for maintaining a healthier workforce.

“Presenteeism” is the practice of coming to work in spite of the fact that the employee is sick, injured or otherwise compromised, and its negative effects on productivity may be even greater than absenteeism, because workers who are compromised accomplish less, can get other workers sick, negatively impact morale and can also make costly mistakes.

A More Committed Workforce

One of the best benefits of providing better healthcare options and incentives for your employees is that those employees become more committed to your company. When employees feel valued — and better benefits packages have that effect — they reciprocate by valuing their workplace more. A more committed workforce sees less turnover, responds better to training, and in general, makes for a more peaceable and productive work environment.

Reduced Health Insurance Premiums

A number of larger American corporations — from Heinz to Johnson & Johnson—have seen first-hand that spending a bit more on employee health actually saves money. In fact, according to William C. Wheldon, the CEO and Chairman of Johnson & Johnson, for every dollar the company spends on their employees’ health, they save more than $4 in reduced healthcare costs. If you want to reduce the amount of money your business spends on health insurance premiums, offering better health care will net you that result over time.

A Less Stressful Work Environment

Workplace stress affects upwards of 75 percent of the American working population, and according to the World Health Organization, it costs American companies $300 billion annually. While a wide variety of reasons exist for that stress, providing wellness programs, gym incentives, offering well-rounded healthcare packages and encouraging healthy eating at the office can all combine to reduce employee stress, which will undoubtedly lead to a less stressful work environment.

Healthier Communities

Of course, the workplace is just one of the places we spend our time. The rest of it is spent with family and friends inside neighborhoods and communities. As the United States population continues to become more and more unhealthy, employers who are motivated to improve their company’s health by improving their employees’ health will find that their community’s health is also improved. If you want to invest in your community and help make it a more vibrant and fulfilling place, take an active interest in the health and well-being of the people who work for you.

Spending money on your employees’ health makes a lot of good business sense. From lowering your health insurance premiums to increasing productivity, your healthy workforce will make up for the extra money spent upfront, and then some.