Employers must take a holistic and adaptive approach to employee health and wellbeing benefits, focusing on effective communication, service integration, and new solutions to fulfil their workforce’s diverse needs amid rising costs.
This was the main point from a Corporate Adviser Summit panel discussion with Unum key account director Steve Brown, EBCam director Steph Butcher and Gallagher benefits consulting leader Mark Pemberthy.
According to Brown, the challenge for employers is navigating complex services, figuring out which ones to use and when, and understanding the employee journey through those services.
Butcher explained that PMI premiums have seen “painful increases” due to increased reliance on private healthcare after Covid. Employers value these benefits for helping employees recover and stay productive, but the costs impact both businesses and employees. Jo stressed a holistic approach, reviewing all benefits to maintain value while managing costs.
She mentioned, “Employers want to provide benefits that help employees recover quickly. But there’s a balance to strike, given the cost impact on both the business and the employee.
“Doing what you’ve always done, just isn’t isn’t the answer in the world that we live in. I think you have to take a step back and you have to look at things differently,” she added.
Pemberthy emphasised that rising costs are due to increased treatment demand and also cited trends such as increases in mental health counselling and cancer incidence as significant factors. He emphasised that these charges should be viewed as workforce investments.
He stated, “The top three issues at the back end of 2023 are 60 per cent of employers apprehensive about the increasing cost of benefits, 56 per cent looking to engage with diverse workforces and communication challenges. It’s important to understand what problems the employer is trying to fix and what issues are relevant to that workforce.”
Pemberthy emphasised the need for employers to provide products that support early identification of health issues, including lifestyle and nutrition advice: “We’ve got to provide products and services that support employers to help with the identification of those things early.”
Butcher also noted a shift towards prevention and supporting employee wellbeing. She said: “The focus has definitely gone more towards the prevention and supporting people at work, keeping them fit and healthy.”
She observed a shift in focus among employers and employees toward the core healthcare elements of Private Medical Insurance (PMI) rather than additional perks.
She noted, “More employers and employees are interested in solely the healthcare element of PMI, and not the bells and whistles.” However, she added that employers still appreciate the additional benefits associated with income protection insurance (IPI).
The panel agreed that as benefits grow more complex, employers must help employees navigate and utilise them effectively. Additionally, integrating different employee benefits teams can greatly enhance their usage and outcomes.
Pemberthy highlighted a case where joining up HR, health and safety, and reward teams led to an 80 per cent reduction in long-term absences over two years.