Of all the things that are obvious, how important employee health is to employee performance tops the list for me. Maybe it’s because we keep talking about this a lot at Loop. Or maybe it’s because we’ve seen the data to prove this over and over.
According to a study by The Society for Human Resource Management, when employees believe their employer cares about their health and well-being, they are…
- 38% more engaged
- 17% more likely to still be working there in 1 year
- 28% more likely to recommend their workplace
- 18% more likely to go the extra mile
- 10x less likely to be hostile
This does seem obvious, doesn’t it? Then why is it that only 39% of full-time employees in India have health insurance and benefits provided by their employers? And it’s not like Indian employees can do without it. A survey by ASSOCHAM found that 43% of Indian employees suffer from depression and 23% from obesity. Frequent ailments include high blood pressure, slip discs, diabetes, and arthritis. A whopping 70% of healthcare expenses in India are paid out of pocket by individuals.
We can talk about numbers like these all day, but the bottom line is simple; If you take care of someone properly, they are more likely to be happier, healthier, and thankful to you. And more than 60% of Indian corporate employees desperately need someone to do that for them. Considering they spend at least 40 of their waking hours every week building an organization, one could argue that it should be the organization’s responsibility to do that, regardless of the ROI.
However, as leaders and entrepreneurs, we also need to make sure that there is an organization in the first place, to take on that responsibility. And what puts the R in the ROI on employee health benefits? The undeniable boost in employee performance!
Good Health Benefits Make Them More Present
We know healthcare expenditure is shooting up like crazy. According to ASSOCHAM, every rupee spent on an employee wellness program can save an employer Rs.132.33 in absenteeism costs and Rs.6.62 in reduced healthcare costs. This proves that getting good health coverage for employees is always good for business.
Presenteeism happens when the employee could be logging in on time or be physically present at work, but unable to be productive due to health issues, stress, etc. If your health benefits include effective wellness programs and mental health support, it can do wonders here.
Good Health Benefits Make Them Stay
We’re in the age of the Great Resignation. Priorities have changed and people are less willing to settle for fewer benefits or a bad culture simply for a bigger CTC. The heat of this revolutionary change is being felt by everyone lately – from recruiters to founders to start-ups to MNCs. It’s simply not an employer’s market anymore.
But dealing with this change isn’t a herculean task either. We’ve heard of start-ups installing indoor slides and smoothie stations at work. But in a remote/hybrid working model, that doesn’t work either. Employees who work at places that show a high engagement in their well-being are reported to enjoy work more, stay longer, develop team loyalty, and recommend the company as a great place to work. So, again, it comes down to simply taking care of your people with amazing health benefits.
So, Where Do You Begin?
There’s nothing wrong with approaching employee health from a cost-management angle, because, at the end of the day, you have a business to build. There are many cost management strategies you can use to deal with escalating healthcare costs too. But first, you need to understand your people and their health challenges. While some catastrophic injuries or illnesses are unforeseeable, there are also very preventable conditions like diabetes you can help them with.
The key is to improve their access to primary and preventive care. When employees don’t have regular access to primary care, they’re more likely to use urgent care or even emergency departments for routine healthcare needs, driving up costs in the process. One of the best ways to increase employee access to primary care is through telemedicine, which is something even the government has plans to implement as per the latest budget announcement.
At Loop, we’ve been providing world-class health benefits to the employees of our clients, on top of their group health insurance coverage. Every Loop member has access to a dedicated 24/7 Medical Advisor, unlimited doctor consultations with general physicians, dermatologists, mental health experts, nutritionists, pediatricians, and women’s wellness experts, along with discounted lab tests. Because the strong impact employee health has on employee performance is so, so obvious.