Health programs have always been an essential part of employee benefit packages. Companies offer health programs as a way to keep their workforce healthy and productive, while also showing that they value their employees.

However, in recent times, some companies have been forced to make tough decisions regarding their health programs, and some have even chosen to remove them entirely. In this article, we will explore what happens when a company removes its health program and its impact on employee morale, productivity, and recruitment.

Impact on Employee Morale

One of the most significant effects of removing a company’s health program is the impact on employee morale.

The value of a health program goes beyond just the benefits themselves; employees appreciate the gesture of their employer taking care of their well-being. When a company takes away something that was previously valued, it can lead to a sense of disappointment, disengagement, and distrust.

Employees may feel that the company does not care about their well-being, which can make them less motivated to work hard and potentially search for another job with better benefits.

Productivity

The removal of a health program can have a significant impact on employee productivity. When employees are healthy and receive the necessary medical care, they are more likely to show up for work and perform their duties to the best of their abilities.

On the other hand, when employees do not have access to health care, they may choose to skip work due to illness or work while sick, which can lead to reduced productivity. Additionally, employees may also be less focused or engaged in their work due to concerns about their health or the health of their loved ones.

Recruitment Challenges

Companies that remove their health program may struggle with recruitment in the long term. A comprehensive health program is a significant benefit that many job seekers actively look for when considering a position.

By removing this benefit, a company may find it challenging to compete with other organizations that offer health programs. Additionally, job candidates may view the company’s decision to remove their benefits package as a red flag, indicating that the company does not value its employees’ well-being.

Alternative Solutions

If a company cannot afford to provide a comprehensive health program, there are alternative solutions that they can consider.

One option is to offer a health savings account (HSA) or flexible spending account (FSA), where employees can save pre-tax dollars towards medical expenses. Employers can also offer telemedicine services or a health concierge that can help employees navigate the healthcare system and find cost-effective care.

Additionally, some employers may choose to offer a wellness program that helps employees manage stress and promote healthy behaviors that can reduce their healthcare costs.

Conclusion

Removing a health program can have a significant impact on employees and the company as a whole. It can lead to decreased morale, productivity, and recruitment challenges.

Companies should carefully consider the decision to remove a health program and explore alternative solutions to help employees manage their healthcare expenses. A comprehensive health program is one of the essential benefits that a company can offer to attract and retain top talent, and it is essential to ensure that employees feel valued and supported.