Employers Can Increase Employee Retention

1402 Words May 10th, 2015 6 Pages
Thesis Statement Research indicates that employers can increase employee retention, increase employee productivity, and reduce employee healthcare costs by implementing a workplace wellness program. Introduction America has a bleak outlook towards the costs associated with employee turnover, productivity decline, and increased employee healthcare costs due to chronic health care conditions. The cost of healthcare is increasing, and employers typically bear the brunt of these costs. Employers also face financial loss in regards to productivity decline and retention. In a Rand report, commissioned by the U.S. Government and compiled, by Matke and others, showed that the cumulative losses of all three domains associated with chronic disease totaled 1 trillion in 2003. Where as 277 billion was spent on direct healthcare (Matke and others, 2013). This wide gap of cost between healthcare costs and the total monetary expenditure related to chronic illness can be explained by absenteeism and presenteeism. Results from a Price Waterhouse Cooper Survey included in the Rand report, found that indirect costs, such as days missed at work, or under performance while at work, were four times higher for employees with chronic diseases than with those without. So how do employers combat all of the rising costs associated with chronic illness? The answer may lie within a relatively new initiative; workplace wellness programs. Employers face increased costs in regards to employee…
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