Healthcare has emerged as one of India’s most important sectors, contributing significantly to the country’s progress. Since 2016, India’s healthcare industry has grown at a compound annual growth rate of roughly 22%, according to a NITI Aayog report in 2021. Over time, the healthcare sector has grown to be one of the most important areas of the Indian economy in terms of both revenue and jobs. As a result of the government’s attempts to expand the accessibility and affordability of health insurance, a number of laws and initiatives have already been enacted in the country.
A case in point is the implementation of Ayushman Bharat, a national health protection scheme that has provided insurance coverage to millions of vulnerable individuals and families. This has lowered not only the financial obstacles but also the utilisation of healthcare services in both rural and urban areas. Furthermore, the government has prioritised basic healthcare infrastructure by opening additional health and wellness centres, ensuring comprehensive care at the grassroots level.
Post-Covid, the healthcare sector is witnessing large-scale changes, particularly in the corporate sector. In the post-COVID era, the necessity and need for a more complete healthcare structure in organisations are rapidly increasing. A key area that has attracted concern in the wake of the COVID outbreak is employer-provided employee welfare programs in the corporate arena. The paradigm shifts brought about by the pandemic in business provision objectives and employees’ increasingly complicated expectations and diverse demographics have now resulted in major transformations in the corporate workspace. Furthermore, the pandemic has accelerated trends in remote work, e-commerce, and technology, with a focus on skill development and transition to different job assignments.
At the same time, there is a new set of challenges for corporations. “The growing complexities in product profiles, ever-changing government legislation, and expanding administrative burdens are also posing new questions. Adding to these challenges is the spiraling double-digit inflationary benefits cost, resulting in the excessive financial burden of health care for employers,” says Prabodh Thakker, chairman, Global Insurance Brokers.
Employers of all sizes and across sectors are dealing with altering employee behaviour and relationships. For effective employee engagement, there are critical considerations about providing the “right benefits” at the “right cost” and with the right delivery communication mechanism. “The competitive, sustainable positioning and delivery in newer areas of health and wellness, especially mental and financial, requires an entirely new and demanding infrastructure to be built by multiple stakeholders. The role performed by and evolving expectations from insurers, brokers, and third-party administrators have also cut across the grain and are thus under close scrutiny now,” adds Thakker.
Post-Covid-19, corporate India has seen a paradigm shift in employee well-being measures, leading to changes in work culture and office disruptions. Health benefits are becoming increasingly important as businesses prioritise employee well-being and work-life balance.
Remote work, mental health, work-life balance, and post-retirement security have emerged as new solutions for employers across industries to address concerns in the health and benefits space. This is one of the key findings of a survey titled “Annual Health and Benefits Survey 2023 – Corporate India in Post-Covid Scenario: Future of Benefits”, conducted by Global Insurance Brokers.
For promoting employee engagement and talent retention, employer-sponsored health and wellness programmes are gaining popularity as efficient strategies for corporates. “Strategic Wellness implementation can improve organisational effectiveness and competitiveness. The years 2020–2022 have been critical for health and wellness programmes, with a growing emphasis on their impact on business gains,” says Naveen Kumar Midha, executive director, Global Insurance Brokers.
The most striking finding of the report is that 56% of employers are focusing on employee well-being and talent retention. Furthermore, 45% of companies voted for ‘improved productivity and reduced absenteeism’ in the newly established work-from-home phenomenon. The findings also get reinforced, as 49% of employers voted for “Focus on wellness” and 46% considered “mental health” as the top area impacted by remote work. What it shows is that organisations are beginning to take employee-related wellness issues more seriously.
Employers are giving work-from-home, the current buzzword in corporate circles, a lot of thought. “Among the benefits introduced for the post-Covid workforce, embracing increased flexibility for remote work emerged as the top priority, with 15% of employers showing increased flexibility towards remote working of employees,” says Puja Parekh, President, Global Insurance Brokers. The report finds that ultimately, striking a balance that promotes both productivity and general well-being is the key to effective remote work.
Another key focus area for employers has been the cost of medical expenses for employees. Corporate India faces a significant impact from rising health and wellness costs, with 88% of respondents expressing serious concern, with hospital billings being a major factor. Costs are increasing due to lifestyle disorders and many benefit options. It can end up costing more in the long term to rely only on insurance discussions. “With healthcare cost-hike at triple the economic inflation, organisations of all sizes & nature are under duress to balance their hard dollars with employee retention. The financial distress in the post-Covid-19 era has brought an uninsured/underinsured employee with a serious hospitalisation alarmingly close to heavy indebtedness.” adds Midha. Overall, ballooning healthcare costs in India are a significant concern for 43% of corporate decision-makers.
When it comes to post-retirement benefits, the scenario is gloomy for employees. While aging and increased longevity are key challenges for Indian businesses, 85% of respondents do not provide post-retirement benefits beyond statutory ones. Further, retirees have limited access to social security and health care services.
Things are changing fast within corporate circles. Organisations now have access to a variety of H&W programmes that can be offered and address different facets of health promotion and sustenance. More importantly, employers today have a comprehensive understanding of health and welfare that encompasses physical, mental, social, and financial factors. However, “Wellness must be tackled strategically and integrated into a larger organisational performance framework in order to realise meaningful business rewards,” says Parekh.
Finally, it appears that businesses have discovered the secret to raising productivity and lowering employee absenteeism. The actions performed can consequently improve productivity, cut expenses, and raise staff morale. Companies are deploying novel techniques and strategies to ensure relevancy in a competitive business out of a desire to stay competitive and attract top talent to maintain market position. With a strong emphasis on retaining the best people, the success of the company begins and ends with the well-being of the employees. No wonder, Indian employers now view health and wellness initiatives as the “heart” of the total benefits portfolio!
Disclaimer: The survey was conducted from December 2022 to March 2023 in association with Financial Express.