With more than half a million job openings and an increasing demand for goods as the U.S. economy reopens, manufacturing companies must find new ways to attract and retain employees. According to a study published by The Manufacturing Institute and Deloitte in May 2021, approximately 2.1 million manufacturing jobs will remain unfilled through 2030.
Offering wellness a plan, in combination with a comprehensive health insurance policy, provides job candidates with an incentive to fill these roles and encourages existing employees to engage in healthy behaviors for greater productivity. Here are five excellent reasons why today’s manufacturing companies should offer their employees wellness plans:
1. A Wellness Plan Lowers Healthcare Costs
A wellness plan are geared towards helping employees achieve a greater level of personal health. These programs generally include a range of optional services with incentives for participation, such as premium discounts, gym memberships and cash rewards.
One of the biggest reasons why manufacturing companies should offer wellness plans to employees is to cut down on healthcare costs. According to a study published in the health policy journal Health Affairs, for every dollar spent on employee wellness programs and activities, employers saved an average of $3.27 in employee healthcare costs.
Offering a wellness plan helps ensure that manufacturing employees remain as healthy as possible, resulting in healthcare savings. Wellness plans can be particularly useful for helping to manage chronic medical conditions, such as heart disease, hypertension, kidney disease and chronic pain.
2. Tax Breaks
Employers in certain states can enjoy tax benefits when they offer their manufacturing employees wellness plans. Wellness plans generally focus on several activities and services, including lifestyle management to encourage healthier behaviors, disease management to support individuals with existing conditions and health screenings to identify certain health risks.
Under the Affordable Care Act (ACA), some employers may be eligible for an employee wellness program tax deduction if they establish a qualifying company wellness program. Certain states, such as Indiana and Massachusetts, now offer tax incentives to small business owners that can help lessen the financial impact come tax time.
3. Promote Positive Change
Many employees struggle with physical and mental challenges that can impact their ability to work productively. Wellness plans promote positive change by helping employees with these challenges, such as weight loss for obese workers or smoking cessation for employees who face difficulties quitting.
Wellness programs are designed to change employee health behaviors by encouraging new behaviors that will lower health risks and promote better well-being. This is often achieved through proper educational resources, motivational tools and the social support individuals need to overcome their health challenges.
Employees often experience chronic stress and their work can also suffer as a result. Having access to a comprehensive wellness plan offered by an employer provides workers with the program they need to feel better mentally and physically.
4. Encourage Annual Health Screenings
Yearly checkups from a doctor can help catch medical conditions in their early phases and prevent the development of more serious diseases. Regular health screenings can also improve the chance of a successful treatment or cure, increase a person’s lifespan and reduce healthcare costs over time.
Annual health screenings generally consist of standard services, such as family history, body mass index (BMI), blood pressure, counseling, preventive screening and a physical exam. It may also involve cancer screenings, sensory screenings and immunizations based on the unique needs of the patient.
Given the physically demanding industry, it is vital for employees in the manufacturing sector to maintain their health and routine annual screenings are a great way to achieve this goal.
5. Decrease Absenteeism
Absenteeism in the workplace can have a direct impact on productivity and can increase employee stress levels due to understaffing. According to the publication ‘Absenteeism: The Bottom-Line Killer,’ unscheduled absenteeism costs businesses approximately $3,600 per year for each hourly employee and $2,660 per year for each salaried employee.
Workers may call in for a wide range of reasons, such as an illness, injury, burnout, time theft, low workplace morale, bullying, or child or elder care challenges. Offering workplace wellness plans have been shown to reduce absenteeism by promoting positive behaviors, lowering stress among employees, aiding in positive mental health, and controlling cholesterol levels, glucose levels and blood pressure.
When employees feel healthier both mentally and physically, they are less likely to miss work and are better able to manage the stress that comes from their job. A wellness plan also provide incentives to motivate employees to want to work.
Request A Consultation With New City Insurance About A Wellness Plan
Many manufacturing companies recognize the importance of offering their employees a wellness plan in combination with health insurance. For more reasons why your manufacturing company should start offering an employee wellness plan or to speak with an experienced employee benefits consulting firm about wellness plans or other benefits, contact the professionals at New City Insurance.