ASK THE EXPERT:CH Insurance-It Pays to Be Work-Fit
Do You Have a Wellness Plan?
While offering health coverage and benefits for employees and dependents is a major business expense, lost productivity due to physical and emotional health problems can be far more costly for employers.
Lost productivity is classified in two ways: presenteeism and absenteeism. While absenteeism means that the employee is physically not at work, presenteeism is when an employee is physically at work but a physical or mental health condition negatively affects their work quality and quantity. Employers spend two to three dollars on medical-related productivity costs (presenteeism) for every dollar spent on pharmacy and health care costs.
The AdvancePCS Center for Work and Health conducted a study of 29,000 employees in the United States to determine how many hours and dollars were spent on lost productivity. The study revealed that 71 percent of lost productivity time was directly related to deficient performance on the job, while only 23 percent was due to actual absences from work. The remaining 6 percent of productivity costs were found to be associated with family health obligations. In addition, smokers who smoke at least one pack per day had productivity losses double that of their nonsmoking counterparts.
Effects of Presenteeism
Presenteeism can have many negative effects on your workforce, including:
• Spending unneeded additional time on tasks
• Decreased quality of work
• Lack of initiative
• Infecting other employees, clients or customers with an illness
• Lowered ability to perform at high level
• Decreased quantity of work completed
• Inability to be social with co-workers
• Lack of motivation
Causes of Health-Related Productivity Costs
• Back and neck pain (notoriously a very expensive and prevalent medical condition)
• Colds and the flu
• Sinus trouble
• Depression and/or anxiety
• Ongoing chronic conditions
Decreasing Health-related Productivity Costs
To reduce productivity costs in your workplace, should consider the following:
• Offer Fitness and Nutrition education at workplace. This promotes healthy relationships and connections with team members. When Employers create a climate of that encourages good nutrition, fitness, and support for employees mental health…..everyone wins!
• Offer health fairs, screenings and health risk assessments for staff
• Integrate your health benefit strategies with your health management and wellness initiatives.
• Design your benefits package to support the behaviors for your organization.
• Partner with a health professional or company that takes an innovative approach to wellness and offers productivity, wellness and disease management resources. Your health care company could offer the following:
• Wellness and health risk assessment tools
• Lifestyle management and chronic condition assistance
• Solutions that empower individual employees to take control of their health care
If you do not address your employees’ health care needs, your workplace is far more likely to experience the negative effects of both absenteeism and presenteeism. However, if you can commit time and funds to help your employees get and stay healthy, you will reduce medical, pharmacy costs, workers’ compensation and increase worker productivity.
For more information, contact CH Insurance or your local Independent agent concerning how to execute an effective wellness plan.