Survey: Small employers rate wellness highly, but they worry about costs
BUSINESS RECORD STAFF Jul 19, 2016 | 8:10 pm
1 min read time
279 wordsAll Latest News, Health and WellnessTwo-thirds of small employers say they are experiencing positive return on investment from their employee wellness programs, according to a new survey by Hub International Limited. However, nearly all finance officers are fretting over high health care and benefits costs.
More than 400 senior-level human resource and finance executives at small- to middle-market companies with between 50 and 1,000 employees were surveyed by the global insurance brokerage. The study results pointed to the need for greater collaboration between HR and finance departments in controlling health care costs.
Employee wellness and productivity improvements were the top priorities for the respondents, with 83 percent reporting these issues as most important, followed by cost management at 76 percent. Just 58 percent of respondents ranked Affordable Care Act compliance as a top priority, despite 2016 being the first year of ACA reporting and IRS audits.
Among employers that saw positive ROI from their wellness programs, 35 percent also reported improved productivity and 34 percent cited improved morale, but other key benchmarks for these initiatives are lagging. Just 21 percent of those employers reported reduced employee turnover and just 18 percent noted less absenteeism due to wellness programs.
The study pointed to the need for greater collaboration between HR and finance executives. Although 73 percent of finance executives said they consider HR a strategic partner, 97 percent of finance officials had significant concerns with benefit costs, and 32 percent expected HR to go over budget with benefit costs.
“Given its impact on organizational performance and employee satisfaction, employee benefits must be viewed as a strategic imperative with clear alignment between HR and Finance,” said Linda Keller, national chief operating officer of employee benefits for Hub International.
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