Many coaching clients struggle with health and wellbeing issues, which aside from the impact on them personally, knock organisational productivity and the economy – a report by the Institute for Public Policy Research (IPPR) finds that the “hidden cost” of employee sickness reached £103bn in 2023, an increase of £30bn since 2018.
Released last month (August), the final interim report from the cross-party IPPR Commission on Health and Prosperity revealed that £25bn of the cost increase was caused by lower productivity and only £5bn was due to increased numbers of sick days.
However, a separate report, from Cigna Healthcare International Health Study, Harnessing Health – Measuring the Impact of Employee Health and Wellbeing Benefits, finds that despite the large proportion of organisations (93%) offering health and wellbeing benefits, only six in 10 employees (57%) felt their employer proactively supported their health and wellbeing. And despite being one of the most impactful employee value propositions (EVPs), more than half (58%) of HR leaders surveyed by Cigna say health and wellbeing benefits are often underused.
This demonstrates a gap in communication between employers about what’s offered and employees’ perception of the support available, says the report.
Health and wellbeing benefits is one of the most commonly offered EVPs (a statement of the values, rewards, recognition, support and company culture offered by employers to employees) and the second most-preferred EVP after flexible working arrangements and leave, finds Cigna’s survey of 1000 managers and directors in HR and benefits functions in the UK, US, UAE, Hong Kong and Singapore.
The business benefits are clear for those who offer tailored benefits. Two-thirds (66%) of employers said health insurance reinforces a corporate culture that supports health, while 65% said it plays a crucial role in attracting talent and 63% deemed it imperative in maintaining employee loyalty. The low uptake is also at odds with findings that show almost half of respondents believe health and wellbeing benefits help shorten working hours (48%), reduce absenteeism (47%) and improve employee productivity (47%).
The report concludes that with underuse of benefits being a common issue across all the markets surveyed, better communication will be key to making health and wellbeing strategies more effective.