Employers often balk at the idea of providing group medical insurance to their employees and are reluctant to add an extra cost to their budget. Especially in downturn economic climate, business owners may be quick to remove culture- and health-related expenses for staff as they see this as a nice-to-have budget line item. Ironically, not providing insurance to your employees is more likely to make the company loses money. A survey conducted in January 2019 on the cost of mental ill health for employers found that there are five types of costs when no prevention or intervention measures are in place:
When employees take the day off because they are experiencing poor mental health.
When employees show up to work knowing their productivity and the quality of work will be negatively influenced due to poor mental health.
The money lost in the time period while recruiting replacements.
All of these costs connected with poor mental health add up to a mind-boggling HK$ 5.5-12.4 billion a year.
EAP help employees with any problems that may impact their job performance, be it personal or work related problems. It does take money to adopt EAPs, but the total cost of poor mental health on companies is 40-90x the amount it costs to have an EAP. They are proven to work – 77% of employees who have used EAPs have reported better mental health and more productivity at work. However, only 24% of employers in Hong Kong offer EAPs.
Not providing insurance is a signal to employees that you do not care about their wellbeing, which produces disloyal, dissatisfied employees who will produce poor work that hurts your company. Investing in your employees' health means investing in your company, and providing insurance will only bring long-term advantages to both the employer and employee. To learn more about our employee health benefits solutions, speak to our team here or Whatsapp us at +852 5379 8911.