Corporate wellness has been around for quite some time now. It comes in different forms depending on what the objectives of the company are and what they want to establish and resonate with their employees.
In the corporate world, big companies like Google, Spotify, Barracuda Networks, to name some of them, are known for their workplace wellness programs such as providing recreational facilities for their employees. But not all companies can afford or offer what these companies can do. But this shouldn’t mean that smaller companies should not engage in corporate wellness, this should actually encourage them to do it even more. It doesn’t need to be very expensive, but it should encourage employees to engage and for the wellness program to leave an impact on their lives. But before we talk about how corporate wellness reduces medical insurance premiums, let’s get an idea first of what corporate wellness means.
What is corporate wellness?
Corporate wellness is a type of health promotion activity or organizational policy within the workplace, designed to support healthy behavior and improve health outcomes. Also Known as ‘corporate wellbeing’ in other countries, corporate wellness often comprises activities such as health education, health screenings, health education, weight management education programs, on-site fitness activities and much more.
What’s the relationship between corporate wellness and medical insurance?
Each company in Dubai is required to provide medical insurance for its employees. Yearly, there is a certain amount that needs to be paid depending on the number of employees and its demographics. In general, over time premiums increase over the years and companies look for ways to help reduce their medical insurance premiums. Corporate wellness programs are a way to do this.
Having a healthy workplace and healthy employees contributes to the maintenance of the current insurance premium of the company by reducing the number and severity of claims. Through wellness activities and educational programs, employees are given the chance to proactively make lifestyle changes and the addition of medical screenings can help identify potential problems earlier so that employees can seek early medical intervention and treatment before bigger health concerns arise.
Therefore wellness programs can save money for the company on their insurance policy, however, it is also a way for the company to invest in its employees. Employees know that they are valued for their hard work plus gives them the opportunity to understand the importance of a healthy workplace.
The impact of corporate wellness on medical insurance premiums
There is a saying that the healthier the company is, the more they grow, and that growth leads to revenue. Corporate wellness is never seen as a necessity in most companies because of the expenses involving it. But if you think about it, most successful companies are offering it to their employees as an attractive package because it helps in making them feel valued and it boosts their morale.
When corporate wellness is present, it reduces insurance premiums in so many ways. Providing activities, workshops, etc. to combat burnout or stress in the workplace promotes a healthier work environment. It sounds crazy but actually, as a company, you are investing in your employees and at the same time your employees are investing in themselves which will lead to reduced insurance premiums.
When everyone in the company is taking care of themselves, is aware of the importance of creating healthier habits, most employees will lead a healthier lifestyle at work including their personal life and that creates a competitive culture environment.
Do wellness programs save employers money?
Huge expenditures on corporate wellness can raise questions among board members, CEOs and shareholders as to whether wellness programs are a good investment? Do they, reduce healthcare costs and, if so, by how much?
There have been many studies conducted worldwide regarding wellness programs and if it really is effective and most studies have shown that wellness programs do help employers save money.
A Harvard study found that for each dollar spent on wellness, it saves employers about $3 in healthcare costs and another $3 in reduced absenteeism. So if you think about it, your return on investment is significantly higher than the investment you put in.
There are times that of course, not all employees are going to be interested in participating in any of these wellness programs but that’s the reason why the person that is in charge of coordinating wellness programs should know their people and what suits them best.
Wellness is not an overnight job, it takes hard work for it to work and this hard work will not just be coming from the company but also its employees. There is a saying, “it takes two to tango” and this is true. We need to remember that a successful company is not only being measured by its millions or billions, it is also measured by how a company makes a difference in the lives of its employees.
Ways on how wellness help with the insurance premium cost
Prevention
By having a corporate wellness program that involves a health screening, an early indication of any unknown health issues will be then addressed which will, in turn, save future costs for the company and the employee if the insurance will not cover any of the expenses depending on the type of the insurance policy.
Improve Employee Performance
Boosting your employees’ morale by providing corporate wellness is not just beneficial to them but mostly to the company. In return, by them feeling appreciated and being taken care of, the performance improves and impacts all sides of the business.
Establishes Strong Corporate Culture
Corporate culture isn’t something that is spelled out in a document, but it influences everything an organization does. It affects everything from employee retention to your bottom line. By providing a tool such as wellness, it establishes what kind of company you would like to be and it sets the tone of how you want your employees to feel being a part of the company.
When done right, corporate wellness offers both near and long-term financial and competitive returns and it provides aid to the long-standing problem of insurance costs. Wellness is not a one-way street, the management and its employees will need to work together in order to achieve it.
If you are looking for a company that will be able to provide you with guidance on how wellness offering works and how it can reduce your insurance premiums, Beneple and Safe Hands can provide you with these services.