Many an intermediary will have endured a difficult conversation with corporate clients last year, with employers increasingly questioning the actual value to them of paying for – or subsidising – benefits for their staff.
After all, it is no secret that finance directors and procurement departments are playing a greater role in deciding the type of benefits their company gives to employees. It would be easy to say that with most employers looking to trim at least some of their benefits spend, those – such as dental cover – that do not appear to have an immediate return on investment element to them could be the first to go.
The problem appears to be a lack of evidence or data to support the theory that dental benefits can in fact save employers’ money, according to Brian Hall, sales & marketing director of Birmingham-based cash plan provider BHSF.
Nonetheless, BHSF, like other cash plan providers, offers dental reimbursement as a core part of its proposition. Most providers of cash plans or standalone dental plans suggest that the biggest gain for employers in providing subsidised or free dental benefits is the likely boost in productivity and morale.
Jill Davies, chief executive of Westfield Health, says: “It would be difficult to provide evidence which proves that subsidising employee dental benefits actually saves companies money. However, it is safe to assume that in a recession, an employer offering dental benefits to their staff will help to boost morale and productivity, and in turn reduce absence.”
However, Jack Briggs sales & marketing director – intermediary of cash plan and private medical insurance (PMI) provider Simplyhealth, believes that there is hard evidence that intermediaries can show to clients to prove that dental benefits can in fact save them money.
Research carried out for Simplyhealth last year shows that companies which do supply dental benefits to employees report savings in time away from work, in addition to productivity gains from improved staff morale. In fact, around half (49%) of companies that supply dental benefits to staff say they have noticed a reduction in time off due to dental problems since they began doing so.
Lara Rendall, a spokesman for cash plan provider Health Shield agrees. She says that by providing comprehensive dental cover, employers encourage staff to look after their teeth and go for regular check ups rather than wait for something to go wrong and having to take unexpected time-off, consequently helping to reduce absenteeism.
“It also means that any worries about how they are going to cover the cost of a trip to the dentist, causing undue stress and anxiety, are unnecessary,” she says.
The research carried out for Simplyhealth also shows that around half (48%) of employers that provide dental benefits for their staff say that doing so makes it easier for them to control time off for dental appointments. After all, a dental appointment – even for a simple check-up – can mean a half or a full day away from the workplace. That is valuable man hours that most companies can ill afford to lose, especially in the current economic climate.
Ironically, perhaps, cynics would suggest that by providing dental benefits for staff, employers are in fact encouraging employees to take time away from the workplace. However, that, Briggs argues, is a short-term view. Catching dental problems early or minimising the risk of them developing in the first place can greatly reduce the risk of more serious problems emerging.
“The entire benefits model of a cash plan is based on preventative care,” Briggs explains. “Yes, there might be a small investment in time at the front end but you reap the rewards over time.”
Mia Edwards, a spokesman for Denplan, a capitation provider, says that like cash plans, dental plans are also designed to reduce long-term, more serious problems, as opposed to insurance which is designed to cover “one off” events.
“Dental payment plans are designed to be used regularly, not just on a rainy day like insurance, and this tangible benefit will also affect the long-term motivation and retention of employees, which will in turn save the company money,” Edwards says.
Aside from the simple funding of dental benefits – whether part or full subsidised or voluntary – employers of a certain size can consider actually introducing dental provision into the workplace itself.
A number or organisations are able to provide on site dentists, much in the same way as many large employers have on site occupational health services. According to Martyn Anthony, head of specialist services at Bupa Wellness, while this approach is usually only taken by large employers, it can pay huge dividends in terms of minimising time away from work.
Bupa Wellness, which provides on site dentists to a number of large employers, mostly in the white collar sector, says that in 2008, its clients reported that the “time saved” advantage ranged from 2.5 hours to 4.2 hours per employee; multiply that by a few thousand employees and the numbers speak for themselves. In fact, according to Anthony, some Bupa Wellness clients report annualised savings of £250,000-£300,000, based on a calculation of average salary and “away from desk” hours.
There is, of course, an initial outlay required to set up an on site dentist. Anthony estimates that an average capital requirement of £40,000 is needed, but after that the maintenance cost over a five year contract is less than £750 pounds per month.
The uptake among staff is impressive too. Bupa Wellness believes that 90% of staff at clients with on-site services take their recommended two oral health checks per year – well above the estimated national average of 60%. Consequently, once an employer introduces an on site dental service, they tend to stick with it.
“Once the benefit is provided it tends not to be taken away,” Anthony says. “Not a single one of our clients with on site dental provision has withdrawn the service.”
Of course, aside from size, on site dentists are not right for every company, Anthony concedes. The nature of the business and its structure might make it inappropriate for on site provision to be introduced.
“We have looked at a company’s demographics and advised them that it’s not necessarily the right thing for them to do,” Anthony says.
However, Briggs, like Anthony, believes that the majority of employers that introduce on site provision reap the rewards in terms of increased man hours and motivation.
“You don’t lay on these types of services unless you see some tangible benefits from them,” Briggs says.
Simplyhealth’s Briggs points out that in addition to the economic argument for providing dental benefits to staff, the majority (71%) of employers feel they have a duty of care to look after their employees’ oral health.
With that in mind, intermediaries, Briggs says, should ask employers if they feel responsible for the oral health of their staff.
“If the answer is ‘yes’, they should then ask them what they are doing about it. Then they can say the employer can either fully fund it, part fund it or offer it on a voluntary basis.
“It’s a message that won’t fall on deaf ears. There are a lot of employers who feel responsible for this. A lot of employers believe they have an obligation in this space and two thirds of them say there are manifest benefits to them of offering dental benefits to staff.”
In addition to the question of funding dental benefits, employers should also consider the actual provision aspect of dental care.
Depending on location, companies might be able to strike deals with dentists locally. In addition to providing “on site” dentists for large employers, Bupa Wellness, for example, has two retail sites in London (Cornhill in the City and Canary Wharf) and one at its Bupa Wellness centre in Solihull near Birmingham.
Dr Minesh Talati of dental chain malmin, meanwhile, is one of a number of entrepreneurial dentists emerging across the country who are looking to strike deals with companies, either through providing dental benefit schemes or actual dental care itself, either on site or out of one of his state of the art surgeries. malmin, a growing chain of ultra-modern dental practices springing up across the country, treats over 40,000 patients and has sites in London and Manchester, with six more planned for roll out this year.
Dr Talati, who is keen to work with brokers to help their clients, says his organisation works closely with HR managers to tailor make dental plans for businesses and offer national and worldwide cover. In some of the sites, called polyclinics, there are also GPs and other allied healthcare professionals.
“We encourage employers not only to have a dental benefit package but to use a dental practice close to the workplace to reduce the time away from work and also to encourage early, lunchtime or evening appointments to minimise disruption in the workplace,” Dr Talati says. “These provide a cost saving which far outweighs the cost of the dental benefit.”