Cost Containment Strategies Around the COVID-19 Crisis
Saving money is more important than ever as businesses feel the impact of COVID-19. The more cash employers can save, the more they will have for things like paying employees and necessary business expenses. Saving money and cutting excess spending will help organizations stay afloat and preserve jobs. As organizations return to work and must adapt their budgets, here are a few areas to consider when managing costs:
- Reevaluate Benefit Plans – As more Americans get sick, health carriers will raise costs to cover the COVID-19 related expenses. To combat these price increases, evaluate what services can be put into a Health Reimbursement Account (HRA). Additionally, consider switching to a self-funded or consortium model. This can help reduce volatility in fixed costs and reduce spending on aspects of plans employees aren’t using. Lastly, look into your telemedicine plan– is it included through your current carrier or will you need to purchase it separately? As social distancing continues, telemedicine will increase in popularity and employees need to know how to access it
- Employee Wellness and Engagement – Now more than ever, employers need to make sure their employees’ needs are met, especially with the external stress they’re facing. Employers also need to make sure every dollar is spent with value. One way to ensure all of this is to survey and get feedback directly from employees. Engaged employees, especially in the current environment, are more productive employees and meeting their needs will help increase productivity. As employees return to the physical workspace, employers must also consider spending costs for necessary precautions, like face masks and sanitizer, to ensure employees stay healthy and safe.
- Communication – The use of technology is important in engaging employees, which leads directly to cost containment. As there have been many changes around healthcare coverage in the last two months, an effective communication strategy is key. This can include text messages, hotlines, webinars, etc. A diverse communication strategy will help employees successfully navigate the changes, access their benefits and ultimately keep themselves healthy.