Offering ancillary benefits like dental coverage is certainly good for the employee. However, it can also greatly benefit the employer.
In the absence of regular and consistent dental care, it becomes significantly more likely that the employee will develop significant health issues. As a result, employees are more likely to miss work, which in turn causes a tremendous loss of productivity.
In fact, recent peer-reviewed research revealed that an average of 320.8 million work or school hours were lost annually for dental care in the U.S. Of these, 92.4 million hours were for emergencies.
Due to this huge loss in productivity, a seemingly obvious course of action – especially in an economic downturn – would be to slash costs by cutting ancillary benefits. While this strategy may provide short-term financial gains, it will most likely result in negative long-term results like damaged morale and lower retention rates.
This is not a sound strategy considering that by 2030, the global talent crunch could exceed 85 million people, resulting in the loss of trillions of dollars in economic opportunity for companies.
As a result, most industry experts and HR leaders suggest that employers need to improve their benefits offerings, including ancillary benefits.
CoPower is a third-party administrator (TPA) that acts as effective tool for assisting employers with their benefits administration. In fact, it provides consolidated administration in the ancillary space and corporate benefits to over 6,000 employer groups and 250,000 employees and their families.
For more information, contact us today!