Commentary: A business case for better employee benefits in 2025

By JOHN T. MAPLES

It seems inflation, and the financial pressure that comes with it, is top of mind for everyone. As business leaders, we would be remiss to not acknowledge potential economic challenges ahead. In fact, in a study published earlier this year, CEOs in the United States rank a potential recession as their top external concern. Similarly, 62% of Americans view inflation as a major problem for the country, particularly as health care costs continue to rise. 

As businesses are forecasting for 2025, management teams may propose cost-cutting strategies in the form of a leaner employee benefits package. Albeit a tempting approach to reduce overhead costs, statistics show health and wellness are increasingly more important to employees. According to SHRM’s recent survey on employee benefits, health-related benefits are the most important for workforces, with 88% rating them as “very important” or “extremely important.”   

Medical coverage alone is no longer enough

A generation ago, medical insurance was expected, while ancillary benefits—like dental insurance—were viewed as elective. That’s no longer the case. Today, 91% of U.S. adults believe a dental visit is as important as an annual physical. Despite this shift, 12% of companies in the Midwest that provide health insurance still do not offer dental coverage to their employees. 

Healthy employees = healthy business

While we all can appreciate the importance of taking care of employees, the link between health benefits and business profitability is often overlooked. Dental insurance, in particular, plays a critical role in productivity. Each year $45 billion is lost in productivity in the United States because of untreated oral disease, according to the National Conference of State Legislatures. This is partly due to pain, discomfort, and other distractions caused by dental issues contributing to absenteeism and making it difficult to stay focused. Moreover, people with dental coverage can save an average of 35% when visiting network dentists, alleviating cost barriers that may prevent people seeking-out necessary dental care. 

Every business will be scrutinizing expenses and conserving resources heading into 2025. But I believe a healthy Illinois workforce is the hallmark of a healthy Illinois economy. As a CEO, responsible for the livelihood of hundreds of Illinoisans, I see this year’s benefit enrollment period as an opportunity to:

• Show support and stability to staff by investing in their health.
• Improve loyalty within our talent pool.
• Foster a healthier, happier and ultimately more productive workforce.

With the new year and annual budgeting season on the horizon, there’s no better time to show up for your employees and make sure they feel valued and supported. And, in the event of an economic downturn, you cannot afford to lose valuable talent to your competitors that are dedicated to their staff’s health and wellness. 

John T. Maples is the president and CEO of Delta Dental of Illinois.

 

(Editor’s note: This commentary piece also appears in the October 2024 print edition of the Illinois Business Journal.)