Investing in employee health care strengthens service delivery — Ab

Investing in and ensuring the wellbeing of employees creates a positive environment in which employees can thrive and provide the highest quality of service to clients, thereby achieving business goals, argues Leila Abu, senior vice president, human resources, Reliance HMO.

This perspective highlights why modern businesses prioritise the health and wellbeing of their employees to improve overall business performance and service quality, she added.

According to the Global Insurance Market Report, Nigeria has the lowest insurance penetration rate in Africa (0.5%) compared to South Africa’s 12.2%.

Discussing the direct relationship between employee wellbeing and overall business profitability driven by comprehensive health insurance plans, Abu, speaking on Lagos Talks 91.3 FM’s ‘Health Talk’ segment, maintained that the Nigerian insurance industry has been plagued by serious trust and credibility issues dating back to the early 19th century.

“However, start-ups now understand that employee health issues can reduce productivity. They are actively exploring various reliable health insurance options to empower their workforce and increase productivity. Research shows that health-related absenteeism costs SMEs between N23,399 and N113,399 per employee per year. For larger businesses, the figure rises to N24,650 to N414,700,” she revealed.

Leila Abu addressed a common misconception among employers that their employees will always be healthy, explaining how unexpected health issues can place a heavy financial burden on employees. “Unfortunately, some employers assume that their employees are healthy and that they are never sure if they will get sick. That’s not the case with healthcare. Accidents happen every day and paying out of pocket for emergency treatment can have a serious impact on anyone’s finances,” she said.

Abu also noted that a common trend among leading companies is to establish a strategic advantage within their industry by offering comprehensive medical benefits.

“Top companies are now leveraging access to health care as a talent retention strategy. It’s also a tactic used to attract the best talent in the market. Employees feel valued when they know their company covers health care for them and their family,” she said. This approach, she said, helps them retain top employees, attract high-value talent and become more competitive in the talent market.

According to a 2023 study from the WEF, companies with comprehensive wellness initiatives saw profit growth of 115% compared to 27% in earnings per share for their competitors, highlighting the competitive advantage and economic benefits for companies that prioritize the health and well-being of their employees.

Furthermore, Leila touched on the challenging situation employees face and how investing in their employees’ health can improve and maintain business owners’ productivity and profitability. “The pressure to perform can be very taxing on employees, and maintaining or achieving profitability is a top priority for every business owner. That’s why our healthcare plans are designed to keep people healthy and businesses productive,” she stressed.

Speaking about her expectations from the HMO, Leila highlighted the comprehensive Reliance HMO health insurance benefits that go beyond just hospital visits. “Reliance HMO health insurance benefits go beyond just hospital visits when you get sick. It also includes preventive care like medical check-ups to monitor your health, gym access for fitness, health talks for lifestyle changes and telemedicine for those days when you don’t want to go to the hospital,” she elaborated, adding that these comprehensive benefits provide employers with the preventive care and holistic wellness required to foster a healthier and more engaged workforce.

A key insight gained from Leila Abu’s interview is the critical role of health insurance in performance and business growth. By strategically investing in employee health and well-being, managers can improve employee performance and make their business more competitive. This forward-thinking approach to health insurance is essential for companies looking to succeed in today’s dynamic marketplace.