5 Keys to Sustainable Savings Part 5: Better Financial Management
We’ve talked extensively about the importance of financial wellness over the past few weeks. Financial wellness means lowering health costs, fostering a more productive and less-stressed-out company culture and creating sustainable savings for both the employee and the employer.
Continuing with our list, the fifth and final key to financial wellness and sustainable company savings is: better financial management.
Empowering Your Employees to Become Healthcare Consumers
Good financial management relies on the efficient use of company dollars. While a company can monitor their healthcare spending by carefully choosing a benefit plan, it is out of their hands when an employee utilizes those benefits.
For example, if an employee picks an in-network MRI facility that is significantly more expensive than others nearby, the employer ends up paying more. Read more about fair-priced providers.
But how do you manage employee spending? You empower your employees to become healthcare consumers. A healthcare consumer makes deliberate, informed decisions regarding their medical care.
These choices benefit not only their physical and mental health, but also their financial well-being.
Healthcare consumers begin to understand the need to incorporate healthcare costs into their household budget so they can actually afford care when it is needed.
The educated consumer saves themselves money and their employer money too.
By helping your employees gain a better understanding of their benefits and providing the resources they need to make informed, cost-saving decisions, you ensure that they make more efficient and effective spending choices the next time they visit a medical provider. There is a behavior shift with employees, allowing the employer and the employees to better manage company and personal finances.
Learn 5 practical tips to becoming a healthcare consumer.
Financial Wellness Doesn’t Just Work Once
Enabling employees to become healthcare consumers allows a company to align with their employees. And this new pattern of behavior is recurring. Now that your employees are healthcare consumers and have the right resources at their disposal, they will save money each time they or a family member require medical care. The savings themselves serve as motivation. Employees who gain shopping for care as a new behavior will continue to shop.
Better Personal Financial Management, Better Company Financial Management
Aligning with your employees goes beyond just the obvious savings. This alignment empowers employees to live their best lives by making informed, cost-saving decisions so the price and complexity of care doesn’t negatively impact their work and home life.
Moreover, as an employer investing in your company’s financial wellness, you are creating a workforce of healthcare consumers whose better financial decisions directly affect your company’s healthcare expenditure. Again, as they save, you save. So that initial investment in financial wellness pays off. Empowering employees to more efficiently manage their health spending ensures improved financial management for the company too! It’s a win-win.
We’d Like to Hear From You!
Have thoughts on creating sustainable savings and better financial management? Comment below.