There is a very strong connection between a healthy workforce and an improved bottom line. However, it seems that not enough employers across the country are taking this into consideration when adopting insurance solutions and benefits plans, and changing this could be one of the best ways to boost the financial well-being of a company.
Recently, new information further confirmed the idea that a lack of illness and injury can be a positive for a business. With that in mind, a company should address its current risk management plan and identify more ways to improve workforce health and safety.
High costs linked to poor management
According to a recent report from the Integrated Benefits Institute, employers paid an estimated $576 billion a year related to health management, according to Business Insurance. A substantial portion is connected to medical costs, but a majority is because of lost productivity and wage replacement expenses, thanks in part to workers compensation insurance and long-term disability.
The IBI reported that these costs were particularly high because of poor management steps taken by employers, the news source noted. Ideally, expenses could be reduced if better strategies were in place to control workplace injuries and illnesses.
"Employers always bear the financial burden of lost work time, no matter how they finance health care," IBI president and CEO Thomas Parry said at the 2014 IBI Annual Forum in San Francisco, according to Business Insurance. "Health management interventions, including worksite wellness programs, can reduce medical costs, employee absences and lost productivity, particularly over the long term."
Design effective programs
With this in mind, employers throughout the nation have to remain focused on creating a safe, enjoyable work environment for all employees. A health and wellness program can be a part of that, but they need to have the right elements in place in order to be most successful.
According to the National Institute for Occupational Safety and Health, this starts with the establishment of clear principles. For example, companies should create goals, and use those as motivational tools to inspire action among their employees. In addition, this is the time to determine how much resources are going to be directed into these programs, but it is important to remember that injury and illness prevention can lead to lower workers comp insurance costs and other expenses.
Above all else, businesses should aim to remove occupational hazards, NIOSH noted. Even simple changes can have a big impact on overall health and safety, such as improved work station design and flexible working hours. These steps can lead to a more productive and successful company.
