Every CEO understands this—companies need workers, and workers cost money. Companies would not be able to function without their employees, and although it's socially taboo to ask someone about it, each one of those workers has a cost.

 

But today, with healthcare costs taking center stage in the national dialogue, the unmentionable has become dinnertime conversation. Just how much should an employer spend to keep an employee covered? Believe me, every CEO and CFO in America is asking that question right now...
 

Hewitt’s annual health care survey reports that employers are taking a stronger stance toward holding employees accountable for their health. And why shouldn't the employer expect more from their employees? In most cases, the employer is the major payor of the health insurance bill. The employer has the most at risk. 

 

As health insurance has become a top line expense item on the balance sheet, and is one of the fastest growing costs, employers are feeling the need to manage their health insurance plans much like they manage their entire business. Manufacturing firms are managing storage costs better by using more closely controlled shipping practices for both parts going in and products going out. Many firms are maximizing square footage through more efficient use of office space. Everywhere, efficiency is at a premium. Health care is no exception.
 

If poor health in their employee population leads to higher costs, then an employer who is not managing employee health is going to be at a financial and competitive disadvantage to those that are managing employee health. Why? Because poor health not only affects health insurance rates, but employees struggling with health issues are also absent more often, have higher workers' comp costs, and are less productive on the job—all of which affect the employer's bottom line. 

So to maximize health, many employers are offering rewards or incentives, or, in some cases, even subjecting employees to penalties for not fulfilling prescribed health-related requirements. [CAVEAT: Please consult legal counsel before implementing any mandatory wellness or health-related requirements related to your benefits plan. Certain approaches may run afoul of anti-discrimination laws, so please verify that what you plan to do is permissible.]
 

With the proper strategic incentives to healthy behavior, access to the right tools at the right time to encourage healthy lifestyle change, and a strong message of support from top management, employees are positioned to respond the way employers hope they will—to make attempts at a healthier lifestyle, follow medical protocols and preventive measures, and work toward lasting change.

Oh, and by the way, the right strategy and well-executed implementation of these measures can lead to significant savings—which is how we got on this topic in the first place.