The Impact of An Employer Sponsored Health Monitoring Program Is Measurable Across Many Metrics and Can Significantly Affect Profit
Increased Productivity: When employees are healthier, they are likely to take fewer sick days and be more engaged and focused on work. Employees with health conditions may experience reduced productivity due to absenteeism, presenteeism (at work but not fully productive), or needing frequent medical visits.
Retention And Recruitment: In today’s job market, employees often consider the quality of healthcare benefits when evaluating job offers. Offering health monitoring programs as a part of employee benefits can help attract and retain top talent.
Reduced Healthcare Costs: Implementing health monitoring programs can lead to lower healthcare expenses. Healthier employees have reduced health care claims which could lead to lower premiums.
Brand Image & Reputation: Offering health monitoring programs enhances the company’s brand image as a socially responsible employer that cares about its employees’ well-being. A positive reputation can lead to increased customer loyalty, improved relationships with stakeholders, and higher revenues. Employees that are convinced their employer is concerned about them will tell others, leading to higher quality employee recruitment.
​Improved Employee Health: By providing resources, education, and support for preventing and managing health conditions effectively, employees experience improved health outcomes. Better health management can lead to reduced medical costs, fewer complications, and improved quality of life for employees.​
​Enhanced Employee Engagement & Satisfaction: Employees who feel supported in managing their health are likely to have higher job satisfaction and morale. Access to resources and support helps employees feel more engaged in their healthcare and motivated to make positive lifestyle changes.
WORKPLACE TRENDS (From 2015 – 2019)
Critical Observation and Question
​Lost workdays
Short-term disability claims
Long-term disability claims
Worker’s Comp lost days​
2% increase
50% increase
10% increase
44% decrease​
With worker’s compensation claims decreasing, the workplace has become safer. So, what explains the increase in lost workdays and disability claims? The data suggests that the overall increase in claims and lost workdays are primarily attributed to chronic illnesses.
A professionally managed Health Monitoring program will help mitigate these increases in claims and, therefore, overall costs.
FACTS AND FINDINGS
​​According to research published by the Integrated Benefits Institute (IBI), chronic health conditions cost employers approximately $4,386 per employee per year from medical costs, absenteeism, and lost productivity.
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Hidden and ancillary costs can add up.
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The US spends $950 billion annually on healthcare.
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75% of all healthcare spending is from chronic illness.
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The US loses $227 billion per year in lost productivity.
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20% of employees have 2 or more chronic conditions.
ROI FORMULAS
Formula 1: Research conducted by the IBI, and others suggests that interventions such as health monitoring programs, mental health support and chronic care management can yield returns between $1.50 to $4.00 for every dollar invested.
Assume a mid-range ROI of $2.50 for every dollar invested
and a cost of $150 per month, per employee or $1,800 per year.
The ROI would be $4,500 per employee per year.
Formula 2: This formula assumes a 60% healthcare cost savings per employee per year or $2,631 ($4,386 X 60%). The ROI formula is the (net cost reduction) X (number of employees).
Net cost reduction (savings – cost) is $2,631 - $1,800 = $831 Assume 500 employees.
The ROI would be ($831 X 500) = $415,500