EXCLUSIVE: Two-fifths (41%) of employers do not know how much providing healthcare benefits is estimated to cost their organisation; this proportion has risen gradually over the past few years, having stood at 30% in 2017, according to research by Employee Benefits.
The Employee Benefits/Health Shield Healthcare research 2019, which surveyed 202 HR decision makers and influencers, also found that among those that are aware of the costs, approximate healthcare spend has remained relatively consistent over the years.
This year, 14% stated that they spend less than 1% of payroll, while 25% spend 1-3%. This compares with the 20% that spent less than 1% of payroll and 30% that spent 1-3% of payroll in 2013, for example.
Given employers’ often considerable spend on healthcare benefits, the proportion that measure their return on investment (ROI) in this area remains surprisingly low.
It is reassuring, therefore, that the proportion that say they are planning to begin doing so continues to rise. This year, a third (33%) are planning to begin tracking ROI, up from 28% last year and 19% in 2017.
Click to download the Employee Benefits/Health Shield Healthcare research 2019