In today's fast-paced environment, prioritizing the well-being of your employees is not just a moral imperative but also a strategic decision that can impact your company's bottom line. One way to achieve this is by investing in an employee health center, which provides increased access to vital care. At the same time, these employee clinics will significantly decrease off-site healthcare expenses — saving you valuable time and money.
However, developing an employee health clinic requires a lot of dedicated planning. One must consider exactly how the clinic will be implemented, as well as what promotional efforts will lead to optimal employee engagement. But first, employers must understand how employee health centers can drive a higher ROI and what this impact means for their businesses.
Investing in Employees
According to the Agency for Healthcare Research and Quality, approximately 20% of the employee population accounts for a staggering 80% of total healthcare costs. What's more, a study conducted by Safety and Health Magazine revealed that workplace injuries total about $198 billion per year. Needless to say, there has never been a greater need to offset employee health expenses.
That's precisely where on-site clinics come into the picture, mitigating these rising costs while encouraging a healthier workforce. The Harvard School of Public Health recently conducted a trial in which several companies put a substantial investment in employee wellness programs. The result was overwhelmingly positive, with each participant reporting benefit cost reductions. The study found these costs dropped by roughly $3.27 for each dollar spent on employee wellness initiatives.
Yet, implementing an employee health center goes far beyond the bottom line; it also serves as a valuable incentive for your team. Above all else, this investment will demonstrate a commitment to their well-being, fostering loyalty and satisfaction with lower rates of absenteeism.
What Drives Employee Benefits ROI?
So, what exactly contributes to this steady rise in ROI? The key lies in providing value to your staff through ease of access and bolstering employee engagement with your on-site clinic. When employees understand the benefits, they are more likely to become actively involved in utilizing these services, generating a positive ROI.
Easy Access to On-Site Medical Services
One of the most immediate advantages of an employee health center is the enhanced access to healthcare services it offers.
With an established employee health center, your staff no longer has to deal with the inconvenience of long wait times for doctor appointments or the hassle of traveling off-site for medical care. Instead, employees are able to take advantage of quick and easy scheduling, with a wide variety of valuable services right at the workplace.
Employee Engagement
Boosting employee engagement is essential to maximizing the ROI of an employee health center. Examples include creating work-based wellness teams, promotional activities, or incentives that aim to increase usage of the center's services.
This strategy will, of course, vary from team to team; you may have to perform some trial-and-error to find the best method of engagement for your staff. Note that encouragement must also come directly from leadership, making it so employees recognize that you value their health journeys.
Top Quality Healthcare
To reach its true potential (and a higher ROI ), your employee health center should always prioritize the patient experience. Remember that the goal is to encourage employees to return and frequently engage with the services offered.
A good way to go about doing this is to present them with a primary care model through your clinic. This means that all facets of human health — be it physical, emotional, or mental — are taken into account, greatly enhancing the quality of care.
Securing the Right Health Outcomes
Personalization truly matters here; employees want to feel that their health concerns are recognized by your clinic. To secure the right outcomes, it's essential to identify and focus on high-risk employees in your team. From there, your goal is to address common health issues prevalent within the employee population, such as diabetes, cancer, or heart disease.
In addition to boosting employee satisfaction and productivity, this will allow for targeted interventions with more effective healthcare outcomes.
How to Measure ROI from Employee Health Services
One key indicator used to measure ROI is the reduced utilization of off-site health services. When employees can access care on-site, it leads to fewer doctor visits and a decrease in external healthcare expenses ( as well as sick days).
A healthier, more engaged workforce also translates to higher productivity rates with lower turnover. Companies that invest in employee health centers often see improved retention and reduced recruitment costs.
How Long Does a Positive ROI Take?
Companies that actively promote and engage employees in utilizing on-site health services tend to achieve a positive ROI faster. On average, it takes about 1 year to 18 months to break even. The most significant cost savings come from reduced off-site services and outside testing, as well as enabling employees to proactively manage their health.
Employee Health Clinics with EHS
It's easy to feel overwhelmed in this process, and that's why EHS is here to take the stress out of organizing and staffing your employee health center. Together with our partners at Mobile Medical Corporation, we will document all client savings in both occupational and non-occupational care models. These reports will be generated based on an analysis of clinic costs when compared to external service prices.
Our reports include downstream savings from a reduction in external specialized healthcare, including any cutbacks in compensation claims and OSHA recordables. We can also project productivity savings, which is based on the difference in ease of clinic access internally versus externally. The sum of total savings is then used as a criterion against the overall cost of your employee health center to better determine ROI.
Benefits of this model include higher recruiting and retention rates, with regular surveys administered to measure employer engagement — all while simultaneously improving the services offered. We will work with your team every step of the process to find a suitable method for evaluating ROI.
Discover a Healthier Workplace with EHS!
Embrace the future of wellness and create a thriving, sustainable workplace for your employees! Contact us today to discover how our services can help you achieve a balanced workforce.