Who is responsible for people’s health? As rates of ill health in the working population have risen across the world in the aftermath of the pandemic, the already complex answer to that question – is it individuals? The state? – is changing. With public health systems under growing pressure and consumer incomes squeezed by inflation, the health and wellbeing of the workforce, and of potential employees, has risen up the corporate agenda. Now, more and more employers are taking the health of their teams into their own hands.
“Now, more and more employers are taking the health of their teams into their own hands.”
There are multiple drivers here.
The UK’s National Health Service is only one example of a public health system under increasing pressure, making access to healthcare slower, more challenging, and more time-consuming. In response, 2023 research by polling company, Savanta, found that more than half of business leaders in the UK were “fairly or very concerned” that waiting times may increase internal sickness absence rates.
In parallel, the number of claims for private health insurance has risen dramatically, with one million claims made in 2022 compared to 873,000 in 2021 – a 15% increase, separate from the accompanying rise in levels of self-paying customers.
Secondly, there has been a cultural shift in the workplace, with more openness around discussing health issues. Topics that were once considered private or even taboo, such as menopause and fertility, are now being addressed more openly in professional settings. This change in attitude has encouraged employers to provide more specific, more targeted, and more comprehensive health support to their workforce.
“Topics that were once considered private or even taboo, such as menopause and fertility, are now being addressed more openly in professional settings.”
The commercial benefits of supporting employee health have also become increasingly apparent to businesses. Providing fast access to diagnosis, treatment and support can be life-enhancing if not life-saving – it also enables employees to return to work faster.
As we discussed in a previous Weekend Edition, it’s estimated that 14 million workdays are lost annually due to menopause-related issues. Similarly, studies show that in a company of 500 people, 220 workdays are lost due to reproductive health concerns, costing that business approximately £76,180. By addressing these health issues proactively, employers can significantly reduce absenteeism and improve productivity, while signalling a supportive working culture.
As a result, healthcare provision is, in a rising number of cases, becoming a core element of employer brand. In line with our recent publication on Lessons in FMCG Employer Branding, in an increasingly competitive job market, offering comprehensive health benefits has become a crucial factor in attracting and retaining top talent. Aviva, for example, reported a 41% boom in sales of its private health business, with significant interest from younger age groups who traditionally would not have viewed private health insurance as a priority.
“As a result, healthcare provision is, in a rising number of cases, becoming a core element of employer brand. In line with our recent publication on Lessons in FMCG Employer Branding, in an increasingly competitive job market, offering comprehensive health benefits has become a crucial factor in attracting and retaining top talent.”
In the first instance, we’ve seen a remarkable surge in employer-provided health insurance. In a study last year, it was found that nearly four in ten UK businesses are considering private health insurance for their workforce. According to the latest data from the Association of British Insurers (ABI), a record 4.4 million people in the UK are now covered by health insurance through their employer, an increase from 4 million in 2021. Organisations like Simplyhealth are leading the charge in encouraging companies to provide health cover for everyone in their organisation, not just higher-paid executives.
Beyond insurance provision, consumer goods company Unilever has implemented an Employee Assistance Programme (EAP) that provides round-the-clock support, 365 days a year. Accessible via phone, text, or web chat, the programme offers services such as counselling, mindfulness-based stress reduction courses, life coaching, financial wellbeing advice, and resilience training. This holistic approach to employee wellbeing reflects a growing understanding that health encompasses more than just physical wellness.
“Beyond insurance provision, consumer goods company Unilever has implemented an Employee Assistance Programme (EAP) that provides round-the-clock support, 365 days a year.”
The positive impact of this type of strategic investment was perfectly outlined to us by Kirstie Jones, the Chief People Officer at Salutem Care and Education. In collaboration with health insurer and service provider BHSF and employee benefits platform Rippl, Salutem has now enabled access to a 24/7 GP service for all 3,000 of its employees, as well as their families. Through both improved retention rates and reduced employee absence, this investment in employment benefits has proven to be a true “win-win” for the specialist care provider.
Pelago Health, meanwhile, has grown from predominantly providing smoking cessation services through public health system referrals to partner with businesses such as General Mills, Amazon and Philips to support colleagues looking to reduce their use of cigarettes, alcohol, cannabis and opioids. Having now raised $58m in a Series C fundraise, the business’s substance use management programme can demonstrate that it reduces both the cost of medical claims and lost workdays. Its corporate customers are now offering Pelago support to colleagues at all levels of the organisation, including in warehouse and logistics roles.
As a result, business-to-employer (or B2E) is now also becoming a highly valuable channel for healthcare businesses to get their products to market. As employers recognise the benefits of a healthy workforce, they are implementing healthcare services into their offering. At the same time, in line with the challenges of scaling in markets dominated by public health systems and insurers, healthcare companies increasingly view employers as a route to customers, use case data, and scale.
“As employers recognise the benefits of a healthy workforce, they are implementing healthcare services into their offering.”
The success of employer-provided healthcare services in improving employee health, productivity, and employer branding suggests that increasingly comprehensive suites of employee healthcare services are here to stay. While the new UK government has committed to rebuilding the country’s NHS, the lead times involved in significantly reducing waiting lists and the reform required to improve access to services outside the core working day, mean that improvements in public health provision are unlikely in the immediate future.
And while we wait for this all to pan out, one thing’s for sure: in the current economic climate, employers who can balance competitive compensation with a genuine commitment to employee health (rather than piecemeal wellbeing initiatives) will have an edge when it comes to attracting and retaining future leaders.
