A healthy workforce is good for your business. However, the constant changes in the market post-pandemic, persistent inflation, declining holistic health, and low job satisfaction are all leading to one thing - poor employee health - and that is expensive.
According to a Wellness Report, in 2022, an average of 48 work days were lost per employee in Canada due to health-related problems. Employee absences are costing Canadian employers around $645 million annually.
One of the major reasons for an unhealthy workforce is low job satisfaction and low employee benefits satisfaction. The number of must-have employee benefits rose to an all-time high during the pandemic and it continues to rise. An increased focus on employee health and wellness played a big role in this rise. However, beyond the expected employee benefits, the workforce today also expects a Health Savings Account (HSA).
| 86% of employees are interested in their employer providing an HSA (Source) |
An HSA provides a triple tax advantage. Employees can use pre-tax dollars to pay for
- Qualified healthcare expenses
- Enjoy tax-free asset growth for future needs
The addressable market for HSA is growing. In just over two years, there has been a 5% increase in employees interested in their employers providing an HSA. However, the number of employers offering an HSA to their employees has fallen by 3% over the last three years.
As an employer, you need to understand how valuable offering an HSA is to your employees.
1 . Promote health and well-being for your employees
Health is one of the major sources of concern. HSA emphasizes preventive care as the funds can be used for maintaining good health through a gym membership or a wellness program.
Preventative care helps employees detect and address health issues early on leading to better employee health and a healthier workforce.
2. A strong financial tool
An HSA allows your employees to contribute pre-tax dollars to a designated medical expenses account. It works as an additional financial tool when required during any health emergency. It also has the potential to help cover the equity gap by building financial confidence as the rolled-over funds can be invested, allowing them to build a substantial amount for future medical expenses.
3. Create awareness amongst the workforce
Implementing an HSA program allows you to educate your workforce on rising healthcare costs, the benefits, and the wellness initiatives taken by your business. You can empower your employees to make informed health, medical, and financial decisions.
Studies show that businesses that support a health, safety, and well-being culture thrive because their workforce thrives. Also, companies with happier and healthier workforces are more profitable than their competitors.
Create a healthy workforce by promoting employee wellness and remember, HSA plays an important role in fostering a healthier workforce.
Disclaimer: The information provided in this blog or in any linked material is not intended and should not be considered a substitute for medical advice, diagnosis, or treatment. For holistic health advice and consultation, visit My Well Self.
