What is an HSA?

What is an HSA?

This 90-second video breaks down how a health savings account (HSA) works and why employees should consider one.

If you have questions about HSA’s or anything relating to employee benefit programs, please contact us using the form below.

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5 Child Care Initiatives to Enhance Your Workplace

5 Child Care Initiatives to Enhance Your Workplace

By GBS Team

The incentives you offer can impact how candidates view your company and its culture. Different programs and benefits will attract different people. Keep this in mind when choosing which initiatives to promote, especially if you want to attract working parents.

The cost of child care in the United States can be the greatest single expense for a household, with at-home care averaging $28,354 annually. Imagine, then, how enticing child care initiatives might be to working parents or those who want to start families.

Moreover, a company’s child care initiatives can make or break an employee’s decision to stay with his or her employer, according to the Harvard Business Review. Offering child care benefits is one of the best ways to recruit talent. Child care services and the support of an employer are consistently cited as top concerns for parents. The following initiatives are just some of the ways to enhance your workplace for employees and their families.

1.     Paid Time Off (PTO) and Flexible Scheduling

PTO is often used to attract talent, especially millennials. However, it can also be pitched as a family friendly benefit to working parents. Parents need time off for things like children’s doctor appointments, unexpected illnesses or family vacations. Offering generous PTO or flexible scheduling benefits makes juggling work and home life much easier for families.

2.     On-site Child Care

This option may be expensive and would require considerable buy-in from the company. However, it addresses many concerns shared by working parents and could be the “make or break” retention benefit for your workforce.

Furthermore, a study in the Journal of Managerial Psychology found that employees performed better and came to work more regularly when using on-site child care, compared against those who use off-site care or did not have children. Similarly, in a survey from Bright Horizons, an employer-sponsored child care provider, 90 percent of employees who use on-site child care reported increased concentration on their job duties.

1.     Child Care Referrals

If offering on-site child care is too expensive, consider offering resources to help employees find the best child care options for their families. Any working parent knows the stress involved in finding suitable care for their children during the workday. Consider establishing a resource network with your employees who use off-site child care. Gather recommendations and information about child care providers nearby and make those resources available to employees.

2.     Child Care Subsidies

Another way to entice working parents is by offering to pay a portion of off-site child care costs. As was stated previously, child care may be the largest single expense for a family in the United States. Offering a child care subsidy might tip the scale in your favor when employees are weighing career options, particularly for working parents.

3.     Employee Assistance Programs

Many working parents have questions about how to balance their expenses or manage emotional stress, especially if they just had their first child. With this in mind, consider offering counseling programs for your employees through an employee assistance program (EAP). An EAP can help alleviate stress that affects workplace performance.

You can choose the right EAP vendor for your organization’s needs and tailor the program to your workforce. Beyond financial counseling, EAPs can cover areas like adoption assistance, elder care referrals and basic legal help. An EAP is usually paid for entirely by the employer and is offered to employees’ immediate family members as well.

The initiatives listed in this article are by no means exhaustive. There are other ways to attract and retain working parents, but these are good places to start. Remember, the programs you establish today can help retain your employees tomorrow. Speak with Group Benefits Strategies to discuss potential options for your organization.

Health-Related Productivity Costs

GBS Benefits Insights

Health-related Productivity Costs ContactHome

$226 Billion Dollars Annually

According to Rutgers University, employee health problems cost employers approximately $226 billion each year. Of these substantial costs, approximately 70 percent resulted from a reduction in productivity, with the rest coming from work absences due to illness. While offering health coverage and benefits for employees and dependents is a major business expense, lost productivity due to physical and emotional health problems can be far more costly for employers.

Lost productivity is classified in two ways: presenteeism and absenteeism. While absenteeism means that the employee is physically not at work, presenteeism is when an employee is physically at work but a physical or mental health condition negatively affects their work quality and quantity. Employers spend two to three dollars on medical-related productivity costs (presenteeism) for every dollar spent on pharmacy and health care costs.

The AdvancePCS Center

The AdvancePCS Center for Work and Health conducted a study of 29,000 employees in the United States to determine how many hours and dollars were spent on lost productivity. The study revealed that 71 percent of lost productivity time was directly related to deficient performance on the job, while only 23 percent was due to actual absences from work. The remaining 6 percent of productivity costs were found to be associated with family health obligations. In addition, smokers who smoke at least one pack per day had productivity losses double that of their nonsmoking counterparts.

Effects of Presenteeism

Presenteeism can have many negative effects on your workforce, including:

  • Spending unneeded additional time on tasks
  • Decreased quality of work
  • Lack of initiative
  • Infecting other employees, clients or customers with an illness
  • Lowered ability to perform at a high level
  • Decreased quantity of work completed
  • Inability to be social with co-workers
  • Lack of motivation

Causes of Health-Related Productivity Costs

  • Back and neck pain (notoriously a very expensive and prevalent medical condition)
  • Headaches
  • Colds and the flu
  • Sinus trouble
  • Obesity
  • Allergies
  • Diabetes
  • Depression and/or anxiety
  • Ongoing chronic conditions

Decreasing Health-related Productivity Costs

To reduce productivity costs in your workplace, consider the following:

  • Address conditions that affect many individuals of your employee population in your wellness initiatives.
  • Offer health fairs, screenings and health risk assessments to evaluate the needs of employees.
  • Integrate your health benefit strategies with your health management and wellness initiatives.
  • Design your benefits package to support the behaviors that you want to see at your organization.
  • Partner with a health care company that takes an innovative approach to wellness and offers productivity, wellness and disease management resources. Your health care company could offer the following:
    • 24/7 nurse line
    • Wellness and health risk assessment tools
    • Lifestyle management and chronic condition assistance
    • Solutions that empower individual employees to take control of their health care

Negative Results

If you do not address your employees’ health care needs, your workplace is far more likely to experience the negative effects of both absenteeism and presenteeism. However, if you can commit time and funds to help your employees get and stay healthy, you will reduce medical and pharmacy costs and increase worker productivity.

For more information, contact Group Benefits Strategies concerning how to execute an effective wellness plan.