While medical care and pharmacy costs are significant, they’re just the tip of the iceberg. When it comes to the full cost of employees’ poor health, the indirect costs related to productivity can be staggering: 2 to 3 times the direct costs, one study shows.*
The Two Main Indirect Health Related Productivity Costs:
- Absenteeism: both short-term and long-term disability
- Presenteeism: overtime, turnover, temporary staffing, administrative costs, replacement training, off-site travel for care, customer dissatisfaction and variable product quality
Some of the drivers of these high costs are:
Unhealthy Behaviors
We don’t eat healthy. We don’t exercise enough. And some of us still smoke. The Centers for Disease Control and Prevention (CDC) notes that obesity-related medical care alone is costing the U.S. $147 billion per year.
The Sticker Shock of Lost Productivity
Unhealthy behaviors are also eroding success in the workplace, as the hidden costs of our poor health include absenteeism, presenteeism (employees who show up for work but are struggling to be productive due to health issues), low morale, turnover and decreased productivity.
Costly Conditions
Employers may not be aware of health conditions or risks that cost them the most. These conditions include:
- Obesity
- Back & neck pain
- Anxiety & depression
Click image to enlarge
For employers, the solution is clear: reducing risk factors reduces claims and helps build a more productive workforce.
In fact, commitment to a health improvement strategy can pay big dividends. That’s because an investment in a healthy, productive workforce is also an investment in company performance. Studies show that as employees become healthier, they also become more productive.
Our Approach
Healthy Futures. This program takes our consumer driven health plans and combines them with wellness programs and rewards that get employees and their families actively involved and invested in improving their health. It’s built on a concept of shared savings between employers and their employees and employee family members.
You can share the premium savings from a Harvard Pilgrim consumer driven health plan with employees by giving them and their families a health incentive account to pay for out-of-pocket medical costs. Members take part in a series of achievable and engaging activities throughout the plan year to earn money for their health incentive account – either a Health Reimbursement Account or Health Savings Account.
By encouraging healthy behaviors and working to change unhealthy habits, wellness programs such as Healthy Futures can help reduce costs associated with absenteeism and presenteeism, while improving employee productivity and morale.
* Hemp P. “Presenteeism: At Work – But Out of It,” Harvard Business Review, October 2004, 49-58, 155.
While medical care and pharmacy costs are significant, they’re just the tip of the iceberg. When it comes to the full cost of employees’ poor health, the indirect costs related to productivity can be staggering: 2 to 3 times the direct costs, one study shows.*
The Two Main Indirect Health Related Productivity Costs:
Some of the drivers of these high costs are:
Unhealthy Behaviors
We don’t eat healthy. We don’t exercise enough. And some of us still smoke. The Centers for Disease Control and Prevention (CDC) notes that obesity-related medical care alone is costing the U.S. $147 billion per year.
The Sticker Shock of Lost Productivity
Unhealthy behaviors are also eroding success in the workplace, as the hidden costs of our poor health include absenteeism, presenteeism (employees who show up for work but are struggling to be productive due to health issues), low morale, turnover and decreased productivity.
Costly Conditions
Employers may not be aware of health conditions or risks that cost them the most. These conditions include:
Click image to enlarge
For employers, the solution is clear: reducing risk factors reduces claims and helps build a more productive workforce.
In fact, commitment to a health improvement strategy can pay big dividends. That’s because an investment in a healthy, productive workforce is also an investment in company performance. Studies show that as employees become healthier, they also become more productive.
Our Approach
Healthy Futures. This program takes our consumer driven health plans and combines them with wellness programs and rewards that get employees and their families actively involved and invested in improving their health. It’s built on a concept of shared savings between employers and their employees and employee family members.
You can share the premium savings from a Harvard Pilgrim consumer driven health plan with employees by giving them and their families a health incentive account to pay for out-of-pocket medical costs. Members take part in a series of achievable and engaging activities throughout the plan year to earn money for their health incentive account – either a Health Reimbursement Account or Health Savings Account.
By encouraging healthy behaviors and working to change unhealthy habits, wellness programs such as Healthy Futures can help reduce costs associated with absenteeism and presenteeism, while improving employee productivity and morale.
* Hemp P. “Presenteeism: At Work – But Out of It,” Harvard Business Review, October 2004, 49-58, 155.