As an HR leader or business owner, you’re undoubtedly aware that health-and-wellbeing are increasingly central to workforce strategy. But the data coming out show this is no longer an issue that is confined to reading about in the news on your commute - it’s something that deeply affects the organisation. When you recognise how health issues impact productivity, talent retention, and your employer brand, you position your organisation ahead of the curve.
The scale of the crisis
Recent research reveals UK employers face an estimated £85 billion annually linked to ill-health. That’s made up of a combination of sick pay, lost output and productivity declines. And employees are worried because of things like NHS waiting lists and even access to a GP. As such, 25 % of employees regard private medical insurance as their most important benefit. Bear in mind only 43 % of employers offer it. These figures highlight a dual challenge. On one hand you’re looking at a major cost-drain. On the other, a mismatch between employee expectations and benefit provision that could undermine attraction and retention. Then we can layer in the reality, that if your employees have access to private medical cover, they can be treated and back to work more quickly.
Why HR need to be aware
In short, employee wellbeing equals business resilience.
When people are unwell, either physically or mentally, it isn’t just absence that affects your organisation (though that’s hard enough). There’s presenteeism (under-performance while at work), disengagement, increased turnover and higher recruitment cost. That creates a ripple effect across the business.
Benefits and expectations are shifting
The data on benefits shows that health-related support (like private medical insurance) is rising up the list of what candidates expect. Benefits need to be tailored to what your employees want to make them attractive.
What can you do, and does the answer have to be private medical cover?
· Audit your current health and wellbeing offering
Map what you currently provide (occupational health support, private medical insurance, flexible working, mental-health provision, cycle to work schemes, even lunchtime mindfulness sessions) and compare it with what your employees say they want
· Make the business case using real cost data
If your organisation could reduce absence, improve attendance and boost productivity by investing in wellbeing, you’ll gain more support from finance and leadership. Use the £85 billion number as a backdrop, and build your bespoke business-case. Crack the data, paying attention to indirect costs of poor health.
· Embed early intervention and manager training
Since long-term absence often follows from unaddressed short-term issues, building manager capability to have supportive conversations, identify issues early and guide return-to-work can make a real difference. Fundamentally, people need to believe that their employers care about their wellbeing and not just the role they fulfil.
Health in the workplace cannot be treated in isolation. It’s deeply impacted by the wider state of the NHS. It pays off to have a healthy workforce. By taking ownership of health as a strategic HR priority, you’re helping your organisation reduce risk, enhance performance and improve reputation.
We can help you find leading talent who’ll thrive in a culture that values wellbeing.