Most companies spend a large portion of their budget on employees’ illness as best practice. There are those that think this is an unnecessary risk, while others believe otherwise. However, the fact is that a well planned wellness program can reduce the risk.
Employee health symbolizes significant business risk. With proper risk management, a proper program for maintenance of employee health can help reduce risk. Usually companies ignore this common knowledge and face larger losses by spending on poor health of employees. Everyone knows that prevention is always better than cure. A proper wellness program as a best practice can save thousands by preventing serious illnesses in employees. The same will be applicable for those employees that are disabled.
Consider an example cited by Alain Peddle the head of Research and Development at Discovery Health. An employee has a health problem and due to financial restrains doesn’t get access to quality healthcare. Such an employee will incur losses to the company due to reduced work hours. Moreover, retaining an employee with health problems and disabilities requires spending more on to ensure compliance with best practice. There will be requirements to fulfill like; modification in transportation, assistance with movement and other changes to make them comfortable to work. If replacement is the option, then replacement of the staff will also incur additional expenses. This includes spending on recruitment through best practice.
A medical debate is still on about whether medical aid mitigates risk of losses due to employee illness. There are cases where an early intervention with medical care, as a best practice can benefit the company. If the illness of an employee is ignored it can lead to decreased productivity. Often, employees look for loans from their employer to cover medical expenses. These loans can be as much as thousands of dollars and company takes the risk by lending money to their employee as a best practice.
Such a risk can be evaded by using the best practice of healthcare insurance. There are a range of options which work for different risk management profiles. Employees can choose what suites them best for healthcare coverage. The bottom line is that it is always a best practice to have all the employees enrolled with medical health insurance scheme. It saves companies from larger losses due to health issues with employees through healthcare risk management.
The risk factors associated with employee health are flexible. This is because most illnesses or diseases are preventable. However, this comes in handy only when companies have a strong system that identifies patients at risk and takes immediate treatment measures. For instance issues like high cholesterol, smoking, asthma, diabetes and others can be treated or controlled before they get out of hand. These can be controlled with counseling and improvement in lifestyle for best practice.
It is only right to conclude that implementing compliance with healthcare insurance is the ideal best practice required to mitigate risk of employees’ illness.