WORKPLACE HEALTH AND WELLBEING

HOW THE NUMBERS STACK UP

Suite 802, 68 Alfred Street, Milsons Point NSW 2061

In 21st century Australia, businesses can no longer afford to ignore employee health.

HOW THE NUMBERS STACK UP

Staff turnover, already estimated to cost $20 million per annum, continues to rise in Australia. Organisations that fail to manage health and wellbeing successfully are four times more likely to lose talent within the year after employment - expressing concern for employees and demonstrating a willingness to improve worker wellbeing is one step on the path to developing a good employer/employee relationship.1, 2 And it isn’t just the relationship at stake - the cost of replacing an employee can often be 75 per cent of that person’s annual salary, a price no organisation wants to bear.

Conversely, every dollar invested in workplace health and wellbeing programs generates a return on investment (ROI) of between three and six dollars.3 Recent research suggests that while only 47 per cent of Australian and New Zealand companies offer employee health programs, in North America the figure stands at 79 per cent; that disparity may account for Australia’s above-average absenteeism.4

“Finally, it seems, the health and wellbeing message is reaching a tipping point.”

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Employers, investigating wellbeing programs because their workers are voting with their feet, are often surprised to find that direct financial returns accompany the physical and emotional gains.

The benefits of having a healthy workplace have never been as widely accepted and employers have never been as concerned about employee wellbeing as they are now, targeting a range of concerns from promoting healthy eating and physical exercise to smoking cessation and job stress.5

Here’s why - the long-term economic benefits to the employer of workplace wellness programs are substantial:

• Workers compensation costs decrease by 40.7%1

• Absenteeism from sick leave reduces by 25.3%1

• Presenteeism – which can cost up to four times as much as absenteeism - falls 1

• Productivity rises – healthier employees work about 143 effective hours per month compared to 49 hours by less healthy employees1

• Employee engagement is shown to increase from 7% to 55%1

• Staff turnover decreases while ability to attract new employees improves

• Return on training and development investment increases

• Staff morale, satisfaction and motivation all improve

• Corporate image enhanced 1, 6, 7

UP WITH PRODUCTIVITY

A HEALTHY WORKPLACE CULTURE

“...the long-term economic benefits to the employer of

workplace wellness programs are substantial.”

Consider this fact - healthy workers are almost three times more productive than unhealthy workers.8 That means that keeping your employees healthy can also keep staff numbers down. Employees who participate in a workplace health program demonstrate a more positive attitude and feel more satisfied with their job. In turn, higher job satisfaction is associated with lower absenteeism and improved employee motivation and productivity.7

Developing a positive workplace culture helps organisations improve the health of their workforce. Morale and relationships are improved simultaneously because the organisation is aligning what employees want with corporate objectives and activities.

A strong workplace culture is key to enhancing business outcomes. The cost of poor workplace culture goes far beyond a company’s image and reputation; it can affect almost every area of the organisation. Depending on the size and nature of the business, an improved workplace culture can have a profound effect on increased productivity and reduced operational costs.2

“... an improved workplace culture

can have a profound effect on increased

productivity & reduced operational costs.”

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BE THE WORKPLACE OTHERS ASPIRE TO BECOME

Organisations recognised for treating employees well gain a competitive advantage, particularly during recruitment drives. Becoming a recognised Employer of Choice ensures that the organisation attracts the best employees who are enticed by the workplace practices offered.1,10

The value each employee brings to their organisation extends far beyond the individual’s financial contribution, because an employee with a positive attitude who functions in an optimal physical and mental state can boost the morale, drive, and ultimately, the productivity of the whole workplace.

“Becoming a recognised Employer of Choice

ensures that the organisation attracts the

best employees...”

Absenteeism in Australia rose from 8.5 days per person in 2006 to 9.87 per person in 20101 – a rise of 16 per cent in just five years, and a growing, and unwanted, cost for organisations. Australian businesses also face the ongoing problem of presenteeism (when an employee turns up to work sick or is less productive due to chronic illness, unhealthy lifestyle or preoccupations with concerns outside of work such as sick children or ageing parents). This issue, on average, costs organisations 6.5 working days’ productivity per employee per year, 9 an estimated overall average labour productivity loss in the region of 2.5 per cent.1

A recent study measuring the impact of 12 medical conditions found that the biggest contributors to presenteeism productivity loss are depression (21 per cent), allergies (17 per cent), hypertension (13 per cent) and diabetes (12 per cent).9 Often several medical conditions are present simultaneously, so the more health risks an employee has, the less productive they are.

DOWN WITH ABSENTEEISM AND PRESENTEEISM

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Workplace stress, of course, is a common and costly health risk; a strong and balanced workplace culture that embraces certain codes of practice is helpful in long-term prevention of stress-related health issues. Workplace culture can also be instrumental in setting benchmarks for acceptable behaviour. For example, a supportive workplace environment with clear guidelines addressing bullying and harassment ensures that this type of behaviour gets reported and dealt with earlier.2

SHOW YOU CARE

Organisations that show support, concern and commitment to employees by providing healthy workplace practices have greater employee commitment 13 and can drive increased employee engagement.11,12 And when programs are well managed and staff feel valued, research demonstrates that employee engagement can increase from 7% to 55%.1 As highly engaged employees tend to have better communication with others, in a customer service focused business, this can translate into increased success in the marketplace.7

While results won’t be evident immediately, increased employee engagement can be observed in just a few months, whereas increased productivity and improved corporate image may take one to two years - longer still for notable decreases in absenteeism and workers’ compensation costs.3 Success will depend on a number of factors, chief among which are employee participation and engagement at all levels, accompanied by management support. Changing workplace culture takes time and perseverance but pays enormous dividends, not just for the individuals, employer and the workplace concerned, but for their clients, suppliers and the community as a whole. 1, 3

“an employee with a positive attitude ... can boost the

morale, drive, and ultimately, the productivity of the whole

workplace.”

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Suite 802, 68 Alfred Street, Milsons Point NSW 2061 How the Numbers Stack up. V.1

REFERENCES

1. Comcare. Effective Health and Wellbeing Programs, viewed 18 February 2016

2. Edwards, Dr. G., & Bolitho, L.E., The Royal Australasian College of Physicians: Health & Productivity. 2013, Improving workforce health and workplace productivity: A virtuous circle, viewed 21 February 2016

3. Workcover Tasmania. Your simple guide to Workplace Health and Wellbeing, viewed 20 February 2016.

4. Safesearch. Growing trends in corporate health and wellbeing programs in Australia in 2015, viewed 23 February 2016.

5. ComCare. Benefits to Business: The Evidence in Investing in Worker Health and Wellbeing, viewed 22 February 2016,

6. Grawitch, M.J., Gottschalk, M., & Munz, D.C. 2006 ‘The Path to a Healthy Workplace.A Critical Review Linking Healthy Workplace Practices, Employee Well-being, and Organizational Improvements,’ Consulting Psychology Journal: Practice and Research; Vol 58, no. 3 (June 2006): 129-147. Viewed 18 February 2016

7. McCarthy, G., Almeida, S. & Ahrens, J. 2011, ‘Understanding employee well-being practices in Australian organizations.’ International Journal of Health, Wellness & Society, vol. 1, no.1,

pp. 181-198. Viewed 23 February 2016

8. Medibank Private. 2005, The Health of Australia’s Workforce, viewed 20 February 2016.

9. Medibank Private. 2011. Sick at Work: The cost of presenteeism to your business and the economy, viewed 16 February 2016.

10. Wesley Corporate Health 2006, The Future @ Work Health Report: Employees and their Workplace, Wesley Corporate Health Pty Limited.

11. PricewaterhouseCoopers. 2010, Workplace Wellness in Australia, viewed 21 February 2016

12. Maha Ahmed Zaki Dajani, ‘The Impact of Employee Engagement on Job Performance and Organisational Commitment in the Egyptian Banking Sector.’ Journal of Business and Management Sciences, vol. 3, no. 5 (2015): 138-147. Viewed 23 February 2016.

13. Butler, C.D, Dixon, J., & Capon, A.G., 2015, Health of People, Places and Planet, The Australian University, ACT, viewed 18 February 2016

This article has been Compiled and Distributed by Corporate Bodies International, May 2016