How to take your Healthcare Benefits from an OpEx to a CapEx + ROI
Quality of benefits is linked to organizational productivity and employee retention, both of which have been proven to indirectly impact the bottomline. To generalize, better benefits equal happier, healthier people, which means they are more likely to work harder and stay longer. However, healthcare, as one of the top expenses organizations incur, is also directly linked to an organization’s financial health. In 2017, the average annual cost for employer-sponsored health insurance was $12,050 per employee per year. The total cost to an organization can be almost debilitating, especially for smaller or mid-sized companies. However, unlike many other line items where cutting spend is acceptable, i.e. it’s okay to forgo the development of a new website to save money, healthcare is an area where organizations not only rarely see costs go down, but struggle just to contain them because they don’t want to diminish or scale back the quality of their employees benefits. In fact, many companies often plan for a 12-15% increase and believe there's nothing they can do about it. It’s just a cost of doing business one year to the next.