Companies investing heavily in employee health, well-being
Published:Wednesday | January 31, 2024 | 12:09 AMAvia Collinder/Business Writer
William Mahfood, chairman of Wisynco, expects a $9.6 million annual bill for group health to increase by around five per cent this year as part of its combined spend to ensure staff health and well-being.
Wisynco’s thrust is part of a growing trend by businesses to shore up the work-life balance as large-scale enterprises seek ways to invest in the health of their workers.
Wisynco outlines that in addition to health insurance, the company also has a well-being programme that costs $5.5 million. This includes the cost of a registered nurse.
They have also built a gym -- commissioned in August 2023 -- for their workers, which cost $35 million.
Also, there are programmes run in Health and Safety Well-being Month each year that cost $3 million, which forms part of an employment engagement calendar which costs $5 million annually and includes various monthly activities such as Women’s Day, Men’s Week, and socials.
Separately, there are initiatives targeting mental health security, supported by Christmas activities and gifting. Last year that cost $21 million.
Mahfood told Wednesday Business that, “While we have not benchmarked these costs against other businesses locally, we firmly believe that our focus on health, safety, well-being, and engagement, coupled with enhanced communication and talent development efforts, has been pivotal in revitalising our workforce post-COVID.”
Kamille Jackson-Malcolm, operations manager at Global Services Association of Jamaica, GSAJ, highlighted that business process outsourcing companies believe spending on the health of their workers has resulted in reduced absenteeism and many benefits for operators.
“Higher productivity levels, brand loyalty, stronger team cohesion, responsiveness re sharing concerns, personal and professional growth and improved motivation and employee satisfaction ratings,” Jackson-Malcolm shared.
She disclosed that costs involved in health programmes and general employee engagement and health-oriented programmes, aside from medical coverage, ranged from J$750/employee to J$2.5 million ( per annum) and that specific programmes include health coverage, social responsibility projects, charity events, adoption of children’s home and events that focus on reward and recognition.
Companies in the sector also have monthly, quarterly and annual awards and events that require participation (to win prizes) such as karaoke, theme days, ‘krazy hat’ days, scavenger hunt, plus surprise treats, bonuses, giveaways, birthday clubs, health fairs which come at no cost to employees.
In the BPO sector, the spend on health is estimated by Anand Biradar, the association’s president, to be about 35 per cent of annual compensation.
One other BPO company shared that its worker benefits include health insurance of J$8.5 million for major medical coverage per individual, life insurance of J$1 million coverage; personal accident insurance J$$1 million, along with disability (temporary and permanent); a fully stocked sick bay in each building; a company doctor (off-site) and hot beverages (team and coffee) and spring water stations throughout production floor and lunchrooms.
MEDICAL INFLATION
The increase spend had an impact on medical inflation, which Group health provider Guardian Life told Wednesday Business has traditionally been higher than the CPI (Consumer Price Index).
“Our experience shows medical inflation in the region of 10 per cent,” indicated Eric Hosin, Guardian’s CEO, adding that this marks a significant increase as a few years ago medical inflation was between five to six per cent.
Hosin said that insurers have been forced to increase their rates in accordance with these adjustments, passing on the cost to the insured public.
In its most recent report (December 2022) on the island’s six life and health insurers, the Financial Services Commission did not reflect any reduction in demand and higher surpluses or profit.
The report showed that combined liabilities fell by 5.1 per cent to $251 billion as at the end of December 2022. Aggregate capital and surplus rose 14.2 per cent to $152.1 billion, moving up from $133.1 billion as at December 2021 due to a 20.9 per cent increase in retained earnings.
For the year ended December 2022, net premiums earned (NPE) for the industry amounted to $80.1 billion, reflecting a 4.7 per cent increase compared to the NPE of $76.5 billion for a similar period in 2021.
The impact of higher costs on the insured public is that companies are shopping around more than before, thereby ensuring that they get the best bang for their buck, he commented.
“All this while insurers perform the management of the risks associated with health insurance, the balancing act of offering competitive rates while maintaining profitability,” said Hosin.
With costs rising annually, he said that companies with group health have responded in a number of ways. The majority, he said, have accepted the increase as they are aware of the rising health costs and inflationary factors. Some have responded by working with staff through health education (use of National Health Fund (NHF) cards, exercise, second opinions on medical conditions/surgeries to reduce the burden on health utilisation; some have shopped around for other local health insurers; while others have been negotiating rate adjustments and/or reduced health benefits.
Health and Wellness Minister Dr Christopher Tufton said they have been negotiating some of those same benefits with the private sector for a healthier cohort.
“Health spending varies from company to company. We do have a health and wellness policy which is shared with the private sector, which includes making space for employees to do workout, nutrition and all the stuff that supports wellness. From our perspective, we offer in-house support through NHF which has programmes and does education programme,” Tufton told Wednesday Business.
“However, it is true that health costs have been rising prohibitively, especially in the areas of cancers. We have a compassionate grant for support when the public sector cannot do it [for workers]. We also have partnerships with diagnostic companies and DrugServ windows for people who cannot afford it. These all impact workers, but costs have definitely been rising.”
Lois Walters, president of the Human Resources Management Association of Jamaica (HRMAJ), told Wednesday Business that health programmes have improved following the COVID-19 pandemic.
“A lot of companies have wellness programmes coming out of the pandemic, with a focus on physical exercise. Some have employee assistance programmes where counselling and counsellors (both paid and volunteers ) are available for staff who need that type of support. The Government of Jamaica does a lot of investment in this area.
She said what while some companies in areas of high stress provide wellness services, “The question is whether employees access these benefits and whether they are seen as a part of compensation.”
Dr Charlene Ashley who consults in the area of organisational behaviour strategy, said, “Workers’ health is often not prioritised by the average company who perhaps focuses more on the obvious elements of wages and proper work tools. Nevertheless many companies do understand that workers’ health is equally important. There is definitely a gap in this area as working 12-hour days (or more) is often an expectation and duly praised and rewarded.”
She said that the lack of focus on workers’ mental and physical well-being “contributes to high turnover rates and many highly qualified, skilled and competent persons seeking employment outside of the country’s shores. Work-life balance is crucial to worker productivity and well-being.”