Healthy People = Health Profits (Practical Solutions by Business, for Business)

Now, more than ever, employee wellbeing is the key weapon in the corporate battle for survival. During economic downturn, employers in all sectors are focusing on how to maximise the contribution of their employees. Sickness absence costs UK employers £8.4 billion a year but £15.1 billion a year is lost through reduced productivity at work (presenteeism). Presenteeism accounts for 1.5 times as much working time lost as absenteeism.

Cost to UK employers (£billion)

“If organisations increased investment in a range of good workplace practices which relate to engagement by just 10%, they would increase profits by £1,500 per employee per year”. (IES/Work Foundation ‘People and the Bottom Line’ 2008)

BITC’s Business Action on Health is business case led and people focused. The campaign makes the compelling business case for investing in employee health and wellbeing, promoting a proactive approach to employee physical, emotional and social wellbeing. The intellectual capital and overall direction for the campaign is provided by a National Leadership Team chaired by Alex Gourlay, Chief Executive, Health & Beauty Division, Alliance Boots.

Our seven practitioner steering groups that support the Leadership Team contribute topic specific expertise that have resulted in a suite of highly acclaimed and freely available practical toolkits. This collaborative approach exemplifies the valuable intellectual capital which our member companies, supported by our partner organisations, produce for the benefit of their peers seeking guidance in developing responsible business practices within their own workplaces.

The business case is clear

Since the launch of our Business Action on Health campaign in October 2007, employee health and wellbeing has become increasingly important, not only as part of the HR and corporate social responsible business agendas, but as a core business issue for UK business leaders. The business case and return on investment for investing in employee health and wellbeing is clear. Employers can reduce absence, recruitment and retention costs, and increase employee engagement and productivity.

Health and wellbeing is now established as a key component of corporate responsibility, as well as general business strategy. The Health and Wellbeing section of BITC’s Corporate Responsibility Index has been the most frequently selected social impact area for the past three years. Our 2009 CR Index results demonstrate that businesses understand it is their people, and the workplaces that support, empower and nurture them, that will largely determine success or failure. Increasingly, companies are positioning employee health and wellbeing is a strategic boardroom issue. MORI research commissioned by BITC, highlights that FTSE 100 public reporting on employee health and wellbeing has risen dramatically from 68% in 2007 to 85% in 2009.

From fragmented to integrated

Most business leaders instinctively know that a healthy, happy and engaged workforce is more productive. However, many businesses cannot see links between wellbeing initiatives and employee engagement and performance because of complete organisational disconnect.There is still a lack of understanding at a strategic level of what wellbeing is all about. For many businesses, the perception of employee health and wellbeing can be superficial – lettuce leaves and gym membership. Wellbeing needs to be repositioned if it is to be understood.

BITC’s evidence-based Workwell Model focuses on four principles that contribute to wellbeing: better physical and psychological health; better work, meaning a happy and engaging work environment; better relationships; and better specialist support. The Model provides a strategic framework for an integrated and holistic approach to employee wellbeing and has had a huge influence on the development of the Employee Wellness Magazine. It positions health and wellbeing as a boardroom issue and demonstrates the business benefits for employers who take a proactive approach. It positions wellbeing as dual responsibility of employers to provide a context for employees to make healthy and informed decisions. The Model promotes the relationship between wellbeing and engagement as being mutually reinforcing in fostering sustainable performance.  When this virtuous circle is broken, high performance becomes unsustainable and, as a result, productivity declines.

Better physical and psychological health

“Supporting our people must begin at the most fundamental level-their physical and mental health and wellbeing. It is only from strong foundations that they can handle the complex issues and challenges that they face every day”.

Matthew Thomas, Manager, Employee Relations, Ernst & Young

Better work

“AstraZeneca recognises that employees are our most important resource, and their welfare is essential to maintaining the highest standards. We believe that people are at their most productive and creative when they are in an environment where they feel positive and enthusiastic about their job, with a clear understanding of their role and confidence in their ability to meet their individual targets. Management of health and wellbeing issues is an important element in developing and maintaining such an environment”.

Sue Connelly, Global Health & Wellbeing Manager, Astra Zeneca

Better relationships

“At Google, we know that health, family and wellbeing are an important aspect of Googlers’ lives. We have also noticed that employees who are happy and healthy, as well as respected and rewarded for their contributions, demonstrate increased motivation and productivity. From both a work-life balance as well as a job satisfaction perspective, our programmes work to ensure that Google is and remains an emotionally healthy place to work”.

Lara Harding, People Programs Manager, Google

Better specialist support

“The benefit of being able to fast-track employees for CBT is huge, and their GPs are so grateful because waiting lists for this sort of evidence based treatment is otherwise significant”.

Dr Margaret Samuel, Chief Medical Officer, EDF Energy

Missed opportunity

The evidence shows employers still have a long way to go in linking wellbeing to engagement or in achieving employee engagement at all. A survey of 300 managers by Right Management this February showed only 18% of organisations use employee engagement strategies to a great extent, and 63% to a fair extent. The research shows that less than half of companies promote health and wellbeing in the workplace, and fewer see it as a strategic tool that can improve company performance.

While a minority of companies are reaping the business benefits of taking a strategic and integrated approach, wellbeing remains misunderstood and undervalued. The challenge is to elevate this agenda so that it receives the attention it deserves and to convince the unconverted to take action. Good health is good business.

About Author: Louise Aston is the National Director of Business Action on Health (BITC), which offers free employee wellness resources.

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