Companies are switching on to the benefits of adopting a proactive healthcare risk management plan
As companies become increasingly aware of the economic benefits of a healthy workforce, more and more employers are investing in healthcare risk management plans.
Case studies show that health risk management systems have brought significant returns to those companies that have implemented them, and while these may take time to show, the financial benefits of reduced sick leave and absence within a workforce are significant.
However, many businesses simply do not account for the impact of absences: a 2010 Investor in People report revealed that only a quarter of UK employers calculated the cost of absence to the business, despite reports that employers spend up to 10% of their annual pay bill managing the direct and indirect fallout of high absence rates.
Though it may require short-term outlay, the benefits of improved employee health are, as Dame Carol Black’s 2008 government report suggested, resoundingly clear. While employers will not want to be accused of failure to provide care or, conversely, nannying their staff, getting the balance right can bring long-term dividends, regardless of the size or nature of the firm.
BT case study
The telecommunications giant saved £3m in March 2003 alone. By setting up flexible working hours, the company retained 98% of those who took maternity or extended leave, saving in retraining costs.
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