Employee health and wellbeing remains high on employers' agenda
David Woods, 06 July 2009
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1 comment on this article.Employers are spending, on average, 9% more on healthcare this year but despite increased costs remain committed to employee wellbeing.
According to Aon Consulting, 29% of employers are planning to redesign their package this year.
The most popular new health benefits employers are considering are dental care (39%), health screening (37%), employee assistance plans (26%), occupational health (16%) and health cash plans (16%).
Alex Bennett, head of health consulting at Aon Consulting, said: "Over the past few years there has been a strong emphasis on CSR, and the importance of promoting wellness in a corporate environment is just as vital during the current economic climate, where the implications of excess employee stress can quickly become a major business expense if not managed appropriately.
"So although it is pleasing to see increased provision of preventative benefits, it is concerning that 49% of organisations still do not offer basic employee support through an EAP, which can cost as little as £10 per person, and can greatly support employees by providing services such as debt counselling and stress management.
"While increasing the spend on the prevention of illness or injury at work makes clear financial sense, in good times or bad, this only holds true if benefit overlaps are eliminated, services are integrated and benefits are redesigned specifically to align with the needs of the business. Only then will overall employee health costs be at their most cost-effective."
The research also shows employers are investing in healthcare to provide a competitive benefits package (67%), for corporate responsibility purposes (56%) and to lower staff absence (53%).
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John Picken - 06 July 2009
I believe the classification of occupational health, health screening and employee assistance plans as benefits in this article is wrong. They have never been treated or taxed as an employee benefit.
The current inconsistencies and confusion over how all aspects of company paid healthcare provision should be treated needs a complete overhaul.
Employers are coming under greater pressure from the government and other agencies to better manage employee health and wellbeing - particularly around early intervention. This is primarily based on saving state funded health and welfare costs.
Why is it then taxing both employers and employees who try to help it meet its objectives?
Investing in preventing people from being off work through ill health and paying for them to get back to work quickly if they are ill should not be regarded as a taxable employee benefit. It needs to be seen for what it really is - a benefit to the wider economy.
John Picken www.shandwell.com
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