Cost vs Value – What Really Matters in Health Benefits?

Offering health benefits does not come cheap, especially for smaller businesses. Because of this, many look for ways to cut corners, maybe offering only basic plans or skipping certain benefits like mental health support or eyecare.

While this may save money upfront, it often ends up causing issues down the line. Not only can it leave employees without the support framework they need when the worst happens, it can also send the wrong message and leave them feeling undervalued.

Both these negative outcomes can lead to dissatisfaction, higher turnover, poor motivation and lower productivity. So, by skimping on costs upfront, businesses can end up costing themselves more in the long run.

When companies prioritise value, typically they are thinking beyond the price tag and focusing on a package of benefits that is relevant, scalable and can make a tangible difference to employees' lives and psychological safety. Offering solid benefits can boost morale and loyalty, making it easier to attract and keep top talent. Healthy, happy employees are also proven to be more productive and engaged.

This could mean comprehensive medical plans, mental health resources, wellness programmes or even preventative care like regular check-ups, diagnostic tests and physio treatment. An employee with access to vision care is likely to be more efficient than one struggling with uncorrected eyesight.

A worker with back problems is less likely to miss work for extended periods if they can access regular and affordable preventative physio treatment. For workers suffering with mental health issues such as anxiety or stress, access to mental health support can avoid burnout and reduce absenteeism.

Finding a balance that works for the company and its employees does not have to blow the budget but it does need to end up with meaningful benefits. Here are some key steps to follow:

• Ask your employees – use surveys or open discussion to find out what benefits they care about
• Focus on prevention – Preventative care is usually cheaper and more effective in the long run as it cuts problems off at source
• Leverage tech – Wellness apps, web-based tools and telehealth services and are all affordable ways to provide support in a convenient package
• Accept the differences – recognise and understand your workers' actual needs based on their demographic make-up.
• Shop smart – Work with insurance providers to create plans that fit your budget and your needs.

For most organisations, people are still our greatest asset. Of course, managing cost is important but, in health benefits, it's the value that makes the real difference. By investing in programmes that improve employees' lives, companies can create a healthier, happier, more loyal and ultimately more productive workforce.