How Can a Health Cash Plan Benefit Businesses?

12 Jun 2024

Published in: Member News

When it comes to business, making investments is no small order. But making the right investments? It can be a gamble.

You don’t know whether your decision will add to your bottom-line, or be more of an obstacle to its growth, which is why it's key to understand how investments like employee wellbeing can benefit your business.

So, What is a Health Cash Plan?
Also referred to as a Health Cash scheme, they’re a way for employees to claim money back on the cost of their everyday healthcare treatments, whether it be physical services like optical and dental care, or access to mental and emotional services like Employee Assistance Programmes (EAPs) and virtual GP appointments.

Plus, some plans include financial support such as discount platforms offering enriching experiences like cinema tickets, corporate gym memberships to keep fit, or even savings on the weekly food shop.

Employer-paid plans are available for businesses keen to invest in retaining, rewarding, and recognising their staff, whilst also helping to encourage them to be their happiest, healthiest selves – both at work and at home.

Why are Health Cash Plans Effective?
None of us are 100% healthy and happy all of the time, and it’s vital that we continue making regular preventative appointments and services to ensure we remain in tip-top shape.

Because it’s no good only having cover that only kicks-in when things go wrong – by that point, it’s often too late and employees are usually out-of-action, or not performing to their usual standards. Both prevention and cure are hugely important for businesses, and something we at Paycare are passionate about encouraging.

It might be appointments to see an acupuncturist to stave off migraine attacks that can keep someone off work for a few days, having regular check-ups at the dentist to prevent toothache or infections, or having regular physiotherapy sessions to ensure the body isn’t in pain.

Holistic cover is vital, and it’s helped many businesses to offer peace of mind to their employees. Just check out what our client, Shropshire-based Cedo, says. They specialise in supplying leading retailers with consumer household products such as clingfilm and refuse sacks, has been a Company-Paid policyholder for more than 15 years.

“Paycare has allowed us to effectively support employees with healthcare costs, and has enabled us to support those requiring optical tests and eyecare solutions as part of their role. The Employee Assistance Programme has enabled us to signpost many employees to effective and professional advice and support; we have been advised by employees that it has helped them through tough times and helped them to remain at work.

Why Are They Valued By Staff? 
The cost of these healthcare services can certainly add up and are usually paid regardless of whether employees have a Health Cash Plan in place.

And at a time when bills and living costs are increasing at a faster rate than wages, paying these everyday healthcare costs can further add to the financial strain they are already facing.

 For many who are tightening the purse strings, it’s a case of prioritising other things over their own health and wellbeing, which we know can lead to even more complex and costly issues further down the line.

What is the Cost of Poor Health in the Workplace?
The true impact of poor physical, mental, and financial health in the workplace shouldn’t be underestimated. Poor mental health alone has a huge impact on the broader UK economy, costing a total of £102 billion, which includes the costs associated with absenteeism, reduced productivity, and employees leaving their jobs due to mental health issues (1).

Not to mention recruitment and retention – in fact, two thirds (66%) of employees in the UK believe that the employee benefits offered to them are equal to, or more important than, their basic salary (2). So it’s important to consider what’s important to your team, and how you can support them.

Health Cash Plans are just one of the ways you can offer a high-value benefit at a relatively low investment cost.

What is the Return on Investment Like for Health Cash Plans? 
It’s not only beneficial to invest in employees to ensure they feel valued and supported by their employer, it’s in your business’s interest, too. According to research by Deloitte, the return on investment is £5.30 for every £1 businesses spend on employee wellbeing! (3)

All employers have a limit on budget, but a Health Cash Plan is one of the best and highly-valued investments available. No matter the size or shape of a business, employees will have different needs based on their age, existing health, and priorities. Whether old or young, a Health Cash Plan has something to offer everyone.

If you need support finding the right plan, or you’d like to discuss the options in more detail, our Corporate Account Managers are happy to help on 01902 371010.

Click here to see what’s included in our Corporate Paid plans, or click here to download a copy of our Wellbeing Brochure.

Sources
https://www.axa.co.uk/newsroom/2024/new-research-shows-poor-mind-health-in-the-workplace-costs-the-uk-economy-102bn-a-year/

https://www.pertempsmanagedsolutions.co.uk/thought-leadership/are-benefits-more-important-than-salary/

https://businesschief.eu/leadership-and-strategy/cost-to-employers-of-poor-mental-health-increases-deloitte



Submitted by Katie from Paycare
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