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City of Hamilton
Healthy Workplace - Business Case Resources
Some argue that employee health is the responsibility of the employee, not the employer. But the responsibility argument detracts from the real issue -- employers still pay for the cost of unhealthy employees through higher insurance premiums, absenteeism, and decreased productivity.
The evidence that comprehensive workplace health promotion programs are cost-effective and improve employee health is growing[1]. According to THCU, a recent review of the cost effectiveness of a selection of U.S. workplace health promotion initiatives showed a positive return on investment values up to $8.81 per dollar spent[2]. Typical outcomes include:
- Improved employee health and well-being. In a recent Canadian study, participants were able to reduce their cardiovascular risk factors by the end of a wellness program[3]. Employees at Pazmac Enterprises (Langley, BC) report their participation in workout programs through work made them feel healthier and more alert on the job[4].
- Increased productivity. Employees in poor health are 20% less productive than those in good health—this is comparable to a productivity reduction of one day per week[5].
- Improved employee satisfaction. Workers who are satisfied with their jobs tend to be healthier, and there are links between employee job satisfaction, customer satisfaction and profit. Sears, Roebuck and Company was able to increase revenues by over $200 million in 12 months by increasing employee satisfaction[6].
- Decreased absenteeism. Employees who have three or more risk factors (i.e. they are physically inactive, they smoke, have higher alcohol consumption, and are overweight) are more likely to have 50% more absences from work compared to employees who don’t have these risk factors1. At Telus BC in Burnaby, absenteeism in fitness members is 28% less than the corporate average[7].
- Lower health care costs. DaimlerChrysler saves over $7 million in health care costs each year through their wellness program[8]. Hours lost due to short and long term disability have decreased by 42% at the Vancouver International Airport[9].
- Reduced turnover. American Express Markham, ON facility notes that employee turnover has significantly reduced. In 1998 the attrition rate was 40.31%. By 2000 the attrition rate was 22.99%[10].
The potential for improved health status and return-on-investment are not the only benefits of comprehensive workplace health promotion. Management at Chevron, an energy company in the United States, concur that workplace health promotion has added value to the company by helping them achieve their business goals[11].
Business Case Resources
References:
[1] Pelletier, K. (1991). A review and analysis of health and cost-effective outcome studies of comprehensive health promotion and disease prevention programs. American Journal of Health Promotion, 5(4), 311- 313.
[2] Pelletier, K. (1999) as cited by The Health Communication Unit (2004). An Introduction to Comprehensive Workplace Health Promotion.
[6] Peterson & Wilson, 1996; Jones, 2003; Corbett, 2003.
[7] McKeown, G. (2002). Healthy Workplace: A Sound Business Strategy and a Good Investment: A Four Step Guide to Building the Business Case for a Healthy Workplace. As cited in Canadian Council on Integrated Healthcare. A Discussion Paper on Workplace Health. Retrieved from http://www.ccih.ca/docs/CCIH-ADiscussionPaperonWorkplaceHealthFinal.pdf.
[8] Corporate Leadership Council. (2002). ROI of Wellness Programs.
[11] Whitehead, D. (2001). A corporate perspective on health promotion: Reflections and advice from Chevron. American Journal of Health Promotion, Vol. 15, No. 5, 367-369.
Last updated: June 3, 2010
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