The most important asset of any business is its human capital — its employees. While many employers support that idea in theory, how many employers really know how to most effectively protect and optimize this valuable asset?
Many employers can maximize the skills of their work force and many are experts at motivating that work force to perform at optimal levels. But when it comes to maintaining the health and wellness of the work force, the effort is not always as widespread.
“The health and wellness of the work force is an important element in the success of a company,” says Stephanie Fudurich, the senior director of health management at UPMC Health Plan. “Proactive and sustained long-term investment in human capital will increase individual and organizational productivity and contribute to labor market success.”
Smart Business spoke with Fudurich about the concept of health and human capital and its importance in the world of business.
Why should employers be concerned about the concept of human capital?
When making their decisions, a lot of employers may focus on what they consider to be their biggest expenses: insurance costs or the medical costs incurred by their employees. However, the larger costs are usually incurred in absenteeism and presenteeism (employees who are at work, but not productive). And, as is the case with physical capital, human capital value can be increased through investment.
Employers need to look at the fact that their most valued resource is their employees. The question is, what can you do to help your employees want to stay, perform at their top level, and be more committed and focused on their job? In short, what do you have to do to develop high-functioning employees?
Health and health care costs do not stand alone within an organization. Health plan costs cannot be viewed as a single budgetary line item. We now know that the cost of health care is not only a function of the individual’s health, but the overall culture of a corporation.
Why should an employer make an investment in human capital?
Employers need to ask themselves: Are their employees ‘vital?’ By ‘vital’ I mean do they come to work with enthusiasm? Are they thriving or just surviving? Is there a lot of ‘presenteeism’? Employers don’t realize that the cost of short-term and long-term disability and absenteeism costs them more than medical claims. Add in presenteeism, and costs soar.
