Are workplace health benefits being underutilised?

Global HR leaders say health plans are critical to the culture and talent within an organisation, yet too few employees use their benefits.

A new report titled Harnessing Health – Measuring the Impact of Employee Health and Wellbeing Benefits, crafted by Cigna Healthcare, shows that health benefits are the most impactful employee value proposition (EVP) for attracting talent, yet 58 per cent of HR leaders believe that these health benefits remain underutilised.

“People do their best work when they are healthy and happy, and they value support from their employers to safeguard their health and wellbeing. HR leaders understand this – they have their ear to the ground and can gauge the behaviour and needs of modern workforces better than anyone,” said Jason Sadler, president of International Health at Cigna Healthcare.

Two-thirds (66 per cent) of the HR leaders surveyed believe that health insurance can reinforce a company culture that supports health, while 65 per cent believe that it plays a crucial role in recruiting talented young workers, and 63 per cent believe it maintains employee loyalty.

HR leaders couldn’t stop singing the praises of health benefits, with almost half believing that health and wellbeing benefits help shorten working hours (48 per cent), reduce absenteeism (47 per cent), and improve employee productivity (47 per cent).

The research showed a clear gap between the two in terms of their perceptions of what health benefits within an EVP should look like.

For example, while nine in 10 HR leaders indicate their organisation offers health benefits as part of its EVP, only six in 10 employees (57 per cent) feel that their employers proactively support their health and wellbeing.

If employers offer generous health and wellbeing benefits, they are meeting an immediate employee need, which will, of course, flow into their recruitment and retention ability. Common health benefits across Australian workplaces are often unbeknownst to various employees, derived from a communication breakdown; this can result in these benefits being underutilised.

Six in 10 HR leaders (58 per cent) claimed that the benefits offered are underutilised, with general nutritional support and health and wellness preventive tools being identified as the most underutilised.

“Employees are looking to their organisations to safeguard their health and wellbeing, which involves many aspects of workplace culture and work/life balance,” said Sevda Esenturk, HR officer of International Health at Cigna Healthcare.

That added support and communication from organisations is what employees need so they can access the health benefits that they need. It’s a rather pointless endeavour for organisations to offer health benefits, then fail to make their employees aware of such benefits. Not only will it negatively impact the health and wellbeing of those employees, as they’re not getting that added support, but it does nothing for retention and recruitment, as employees literally aren’t aware of said benefits.

In a time period where health, wellbeing, and work/life balance have never been more important to employees, not following through with health benefits would be the definition of not seizing the moment. As the recruitment and retention landscape becomes even more competitive, having generous health benefits could be that advantage that makes all the difference in the long run.

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.