Chris Cunnington is Employee Benefits and Business Protection Manager at insurance broker, Russell Scanlan. He is seeing a rise in enquiries and in take-up from businesses exploring the benefits of the private health insurance as employee wellbeing remains a focus for firms in 2023 … as does taking a close look at key decisions that affect the bottom line.
In 2022, one in 10 adults in the UK turned to the private sector for independent healthcare. A movement tracked by Russell Scanlan as it has seen private medical insurance enquiries from businesses increase by 12% over the last 12 months.
Clients, business of all sizes and across all sectors, are all reporting similar issues. Recruitment is tougher than ever (and an expensive operation), salaries are under scrutiny given the current cost of living crisis and employee wellbeing is a priority for forward thinking employers. We see clients making the direct link between an investment in healthcare for employees and reduced costs of recruitment, induction and the effect of vacancies unfilled for a significant time. In essence, making a real difference to the bottom line for the firm.
Employers are keen to retain valued employees and so the overall benefits package for staff is something that can make a real and discernible difference between a decision to stay or find a new role elsewhere.
So we find that, as the NHS continues to struggle with volume and service delivery, private healthcare is now front of mind for many – as they continue to fight to access health services both at GP and hospital level. The pandemic has taught all of us that personal and family health is a priority.
Businesses that provide private healthcare cover for individual employees and allow them to adjust that package to include family members are now appreciating the real value, the reassurance and peace of mind that offers. More than that, the realisation that private health cover is an affordable option for the majority rather than the minority can be quite an eye-opener. For many employers it is just common sense to address the major concerns of its workforce and proactively provide a solution.
You can’t put a price on health
According to data from ONS an estimated 149.3 million working days were lost because of sickness or injury in the UK in 2021, equivalent to 4.6 days per worker per year.
The report also highlighted how the rate of sickness absence in the UK rose to 2.2% in 2021, from a record low of 1.8% in 2020; which is the highest it has been since 2010.
But with seven in 10 adults motivated to get healthier due to COVID-19, health and wellbeing has reached the top of many peoples’ priority lists, with a focus on wellness and quality of life. But, according to the most recent NHS backlog data analytics, taken from December 2022 around 7.2 million people were still waiting for treatment.
The same report also highlighted how the number of patients waiting over 12 hours from decision to admission has significantly increased, from around 37,800 in November 2022 to a record high of around 54,500 in December 2022 – a 44% increase.
What are the benefits of private health insurance? According to research carried out by Bionic which highlighted the UK’s most desirable job benefits, 27.6% of people explained that a private healthcare plan was a desired perk. For many, private healthcare provides peace of mind, not least because of the quick access to health professionals it provides.
But the benefits aren’t just for the employee, they’re for the employer too. Businesses that choose to pay for their teams’ private healthcare are looking to see a decline in sickness days, not only because any underlying healthcare issues that team members may suffer with are treated quickly, and efficiently, avoiding potential long-term absences; but a healthy workforce at full capacity will ultimately benefit the businesses bottom line too.
Look for the flexible and entry level packages
Private health insurance will cover some, or all of the costs, depending on the level of cover and premium, which is designed to meet the needs of different customers on an individual basis, including mental health support. Some award-winning business health insurance providers, such as Equpisme, offer a range of affordable, buildable, flexible packages … for sole traders, SMEs and larger corporates. This kind of insurance package is ideally constructed for businesses that want to embark on the private healthcare route for the first time – and to measure its impact on the business.
Evaluate the outcome of the investment
For most of us, the last 3 years has changed working life seismically. Work Life balance strategies were turned on their heads and completely reimagined. Support for Employee wellness has come to the fore as an absolute need and its delivery sets the tone for company values and ethos – a USP for any business. Attracting and retaining skilled employees is now a whole company objective so investing in a private healthcare package for staff often sets an employer apart from other businesses – particularly if that business is of a small to medium size. But as ever, every investment should be measured on its return, and I think that the most businesses will be genuinely surprised at the how such a common-sense move can impact the balance sheet.
Chris Cunnington can be contacted directly at Russell Scanlan on 0115 798 0786 or by emailing chris.cunnington@russellscanlan.com
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