More than two-thirds (67%) of employers are investing in preventative healthcare to tackle soaring medical inflation, according to research by Howden Employee Benefits.
Its Changing face of employee health report, which surveyed 441 employers, also found that 55% of respondents said investing in preventative healthcare is the strategy that has worked best for them.
More than three-fifths (61%) said they are more likely to stay with an employer which offers a good healthcare package, and 47% view it as an important factor when looking for a new role. Just 7% do not think it is an important benefit.
The majority (86%) of respondents believe they are getting a good return on investment from their private medical insurance, and 93% feel their current health plan meets the needs of employees.
Nearly a quarter (23%) have already switched healthcare providers to get a better deal and 39% are planning to do so. Meanwhile, 26% have not yet made plans to switch, but would consider doing so if they get a better deal.
The majority (93%) expect medical costs to rise, and 41% anticipate a significant rise. Employers in the India, Middle East and Africa region expect medical costs to rise by 58%, compared to 27% in Europe and 28% in the UK. Organisations in Asia, and the Pacific and Latin American regions also expect costs to rise, at 52%, 36% and 46% respectively.
Glenn Thomas, chief executive officer and global practice leader of health and employee benefits at Howden, said: “The findings show how quickly the world is shifting, with AI, new treatments and rising costs reshaping the health and benefits landscape. If organisations don’t recognise their people as their greatest asset and address people risks directly, productivity and growth will suffer.
“What stands out in the data is the gap between what employers believe they’re delivering and what employees say they’re receiving. Healthcare benefits are becoming non-negotiable for talent, yet many workers still feel their needs aren’t being met. Benefits must be both cost-effective and genuinely fit for their people.”
