In the U.S. today, employers are the backbone of a healthy American workforce. More than half of our population—over 180 million people—rely on their employer for health benefits. As a result, employers have a unique opportunity to offer programs that drive engagement and promote individual well-being, ultimately benefiting both the organization and its employees.
Employer-sponsored health plans could transform the U.S. workforce by restructuring the programs they offer to include preventative care. That is, health coverage should not only be for when employees get sick, it should also protect the health of employees who are well.
Research shows that employer-sponsored health plans which include preventative care yield dramatic returns on investment.
A robust health and well-being benefits package is a great way for employers to show they care while increasing productivity and lowering costs. According to a 2021 report from Cigna, employees who believe their employer cares about their health and well-being are 38% more engaged in their work. These employees are more productive and miss far fewer days. In fact, employees who receive preventative care benefits miss 70% fewer workdays over the course of a year.
But all too often, employers focus only on absenteeism without taking measures to prevent presenteeism.
As we all know, absenteeism is when employees are not able to be physically present at work, whether remotely or in the office. But presenteeism refers to employees who show up for work but are unable to perform at their full capacity. While absenteeism is certainly more obvious, presenteeism may actually pose a much greater threat.
According to Cigna, “Nearly three months are lost to presenteeism per employee per year, and the costs of presenteeism are 10 times those of absenteeism.” Even when employees are showing up for work, if their mental and physical health isn’t properly cared for, they may not really be there.
Organizations that prioritize preventative health are able to mitigate the risks associated with presenteeism.
Programs that support overall health and well-being, such as fitness benefits, mental health services, and incentives to maintain a healthy lifestyle, are all opportunities for employers to create a more engaged workforce. Simply put, healthy employees are highly engaged, and highly engaged employees have significantly lower rates of presenteeism.
Looking at the bigger picture reveals the colossal importance of employer-sponsored health plans.
In a recent analysis, economist Casey Mulligan, Ph.D., reported that the annual social value of employer-sponsored health plans is roughly $1.5 trillion more than what policyholders, taxpayers, and employers pay for it. According to the McKinsey Global Institute, every $1 invested in improving the health of the population reaps up to $4 in financial gain for the U.S. economy. In other words, employer-sponsored health insurance is worth the investment, many times over.
The fallout from the COVID-19 pandemic has demonstrated the vital importance of protecting our workforce’s health. Now more than ever, employer-sponsored health plans are essential to keep employees healthy, increase productivity, and revitalize the U.S. economy.
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Employer-sponsored health plans could transform the U.S. workforce by restructuring the programs they offer to include preventative care. That is, health coverage should not only be for when employees get sick, it should also protect the health of employees who are well.
Find out why preventative care is essential to improve business performance and revitalize the U.S. economy, this week on our blog.
