Media Center
Is your company up to the challenge of attracting and retaining the top performers needed to drive your business? Recruiting and retention has taken on a “Game of Thrones” approach where the competition is fierce to land the right candidate, and health benefits are a large part of the equation.
Employers typically share the cost of benefits with employees. However, with rising deductibles and co-pays, affordability has become an issue for many employees, and it is placing a heavy burden on both them and their company.
If employees can’t afford or have easy access to health and wellness plans for themselves and their families, their health – both physical and mental – can suffer. This translates to increased absences, reduced productivity, higher rates of job dissatisfaction and lower customer service.
How serious is the problem? According an article in Forbes, the total annual costs related to lost productivity due to unplanned absenteeism in the United States totals $600 billion. That’s an average loss of $4,080 for each full-time employee and $2,040 for each part-time employee per year.
What are companies doing to reverse this trend? They are turning to human capital management and investing intellectual capital, people capital and financial resources to manage their health and wellness benefits.
The estimated cost of healthcare for a family of four covered by an average employer-sponsored health plan is $32,066
Savvy employers are adding more value in their health plans and looking to secure better returns for both their investment and that of their employees. While wellness programs are under increased pressure to prove how they decrease cost, effective population health management strategies are more important than ever before.
Companies need to identify what benefits are most important to employees and which ones drive performance.
Through proprietary predictive data analytics technology and targeted employee education and engagement, Oswald can help clients design and manage a suite of offerings that give them a competitive advantage in today’s tight labor market.
Companies are competing to recruit the top people, and a well-rounded benefits package and the way it is communicated is important. An attractive benefits package that is affordable and comprehensive lets prospective hires and current employees know you value them.
Proven Results
Companies that embrace the human capital approach typically enjoy better financial opportunities in the marketplace. In addition to financial efficiencies, companies compound their good fortune with higher employee satisfaction levels, lower turnover and absenteeism rates, and better overall productivity.
Having human capital aligned properly better positions companies to grow and react to opportunities in the market. They won’t be hindered by the lack of a talented or motivated workforce, and that creates a significant competitive advantage.
For example, an Oswald client had 4,000 employees (8,200 total individuals in the plan) in 25 unique locations. In the period between mid-year 2017 and mid-year 2018, the plan incurred more than $500,000 in inappropriate emergency room use.
When Oswald introduced a new insurance program, it followed up with an analysis of where employees lived and provided them with a geo map of urgent care centers that were conveniently located to their homes. Telehealth fees were also waived and there was a 20 percent reduction in emergency room usage, a six-figure savings for the company.
The same company also saw 70% of its claims arising from chronic conditions such as diabetes and lower back pain. This was due in part to low employee engagement in the plan’s preventive care options.
To raise the level of engagement, Oswald again turned to data analysis and targeted communications. Employees were engaged in a series of text messages and provided incentives to take advantage of the preventive care and wellness benefits available to them. The result: a 7% jump in participation.
The communications piece of the human capital management puzzle is critical to the success of the initiative. The goal was to help employees establish a healthier lifestyle, which led to a better result for the company as well.
End Game
Investing in the health and wellness of your company’s most important asset – its people – shouldn’t be viewed as a budget line item.
Forward-looking companies that engage with their insurance carrier and employees can better identify and understand the underlying drivers of their health insurance expenses and achieve better outcomes for their investment.
For employees and their families, it enables them to discover healthier lifestyle choices and understand the importance of preventive care, maximize their financial investment, and take advantage of all the benefits their benefits package offers.
For more information, contact us here.
This article originally posted in 2019 and was updated in 2025.
