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Research Shows A Healthy Workforce Leads to a Healthy Profit
13/Jul/2010

In the current economic climate where businesses are looking to cut costs, investing in workplace wellness programmes is the last thing on most employers' minds. However, government and private sector research shows that wellness programmes can have a positive impact on profit.

In 2008 the government published figures showing that over two-thirds of adults were overweight or obese and this was projected to rise to 90% by 2050. This has serious implications for healthcare services as they battle to deal with chronic illnesses related to obesity, it also has serious implications for employers as absenteeism increases due
to weight related illnesses, and employees no longer being able to carry out their roles effectively.

There has been increasing pressure on the government over the last few years for it to legislate against 'fattism' in the workplace. Currently, the law only protects employees who are obese as a result of a disability. However, as employers become more and more aware of the possible negative impact of obese employees on their business discrimination as a result of size is likely to increase.

A great deal of emphasis is now being put on employers because of their unique position as a means of tackling this issue. However, many feel that they need to be convinced of the financial benefits to their business rather than launching into a philanthropic exercise which should be falling within the remit of the government. Research shows that employers will benefit financially from the outcomes of a wellness programme in the following ways:

  • A decrease in sickness related absenteeism = a reduction in overtime pay & temporary recruitment.
  • An increase in employee satisfaction = a reduction in staff turnover leading to a reduction in recruitment costs.
  • A reduction in accidents and injuries = a reduction in legal fees, insurance premiums and healthcare costs.
  • An increase in productivity = an increase in revenue, a reduction in overtime payments and a reduction in permanent staff wage roll.
  • An increase in company profile = reduction in recruitment and marketing costs.
  • An increase in employee health and welfare = a reduction in healthcare costs.
  • An increase in resource utilisation = a reduction in management costs.

The above statements are taken from research undertaken by PricewaterhouseCoopers ("PwC"), the conclusion of which was that there were positive links between the introduction of wellness programmes in the workplace and improved business key performance indicators.

What should be included in a wellness programme?

Any wellness programme should be tailored to your industry and the size and resources of your company. The three examples below taken from the PwC study show the benefits of an industry related approach:

Industry

Programme Implemented

Benefits


Manufacturing Company


Physiotherapy focusing on muscular - skeletal issues, prompt treatment of injuries and an absence management programme to assist the return to work.


80 % reduction in days lost due to sickness relating to muscular- skeletal issues. Only 16 % of those referred for physiotherapy took time off work.

Reduction in civil compensation claims.

A more positive health and safety culture.

A ROI of 12 achieved.


Utility Company


Stress interventions - stress ball fights and workplace competitions. Smoking cessation classes and fitness classes.


Reduction in absenteeism by 12%.

Reduction in staff turnover by 25%.

Increased profile, reputation and PR.


Local Authority


Work site lifestyle clinics. Diet & Nutrition Advice, healthy breakfast campaign.


Reduction in sickness absence equal to an additional 141 full time employees between 2001 -2007.

Increase in employee satisfaction.

Sickness absence related savings £1.5m over three years.

Many employers already provide subsidised gym membership and regular health checks. For many, other than large employers, radical programmes will be out of the question, yet there are low cost initiatives that can have significant benefits, for example regular staff sporting activities (setting up a football team), hosting a Weight Watchers or Slimming World class, providing healthy meals in the canteen or providing access to a counselling service for employees experiencing stress.

Providing the motivation

Dame Carol Black in her study 'Working for a healthier tomorrow' states that employers are in a unique position to 'educate, motivate and support their employees in understanding and actively maintaining their fitness and well being'  This may well be so but to what extent can and employer use it's position to make it's employees slim down?

Employers could consider making annual health checks compulsory and not optional in an effort to have health issues and obesity addressed as earlier as possible.

It is unlikely that linking weight loss to promotions will be seen as reasonable; however it might be reasonable to offer other kinds of benefits as incentives instead. Employers need to be careful that any schemes they do adopt do not put disabled employees at a disadvantage.

Where there is a genuine case of an employee being unable to carry out there role as a result of obesity an employer will be within its rights to dismiss them on the grounds of capability as long as their obesity is not as a result of a disability. 

Disclaimer:The information and opinions expressed in all Lee & Priestley LLP articles contained in our briefings and on our website - http://www.leepriestley.com are not necessarily comprehensive and should not be relied upon without taking in-depth professional advice.