Return on investment

"An average $100 was lost for every employee absent for a day. For the whole economy, the savings from workplace health insurance in terms of loss of output avoided is $117 million a year."
Source: Employment Today, July 2008

A healthy, engaged and productive workforce is critical to maximising business performance and driving sustainable growth. There is a measurable link between a person’s health and lifestyle and how productive they are at work.1

For every dollar invested, you could get three back

"Established indicators of accidents, sickness and absence show positive trends and demonstrate the value to the business as well as the staff. Like all good investments, the return is greater than the investment."
Dave Smith, Managing Director, Parcelforce Worldwide (UK).

The total cost to employers from the poor health of employees is estimated at $2 billion per year.2

Given the high cost of poor health to employers and the link between interventions (e.g. health insurance) and better health, the economic case for investing in health and wellness interventions in the workplace should be given high consideration by employers.3

Companies with the most effective health and productivity programmes experience 11% higher revenue per employee and 28% higher shareholder returns.4

Organisations with the most effective health and productivity programmes had total returns to shareholders over the past five years of 14.8%, compared with low-effectiveness companies, which reported a decline of 10.1%.4

Specifically, physical inactivity can impact on employee productivity by causing increased absenteeism and presenteeism, which impose direct economic costs on employers.5

The Switch2Well experience

Southern Cross’ investment in developing an innovative wellness programme for employees has been recognised with a number of awards including being named a Finalist in the 2009/2010 JRA/NZ Herald Best Places to Work (Large workplace category). 

'Switch2Well' has surpassed expectations in terms of staff participation - an incredible 98% of its employees (around 550) have participated in some aspect of the programme. 

Southern Cross is reporting on the impacts of Switch2well against key business metrics including absenteeism and turnover. So far the results have been impressive. Year-on-year quarterly comparisons for unplanned leave for sickness have consistently decreased, while staff turnover has reduced.

Read more about Switch2Well

Productivity gain for Parcelforce (UK)

After two years, the Parcelforce Safer Workplace and Healthier Workforce programme contributed towards 12.5% productivity increase, 50% customer service improvement, 45% fewer accidents and a 33% reduction in sickness absence.

Parcelforce provided on-site health assessments and advice, improved absence management, health education programmes, gyms, healthcare and other resources promoting wellbeing.
Source: Business in the Community, October 2007

Sources:
1. Australia. Sick at work, May 2007, Medibank Private.
2. Based on statistics from Statistics New Zealand; The cost of ‘Presentee’ days are estimated at 50% of the employee’s costs for a full day (average 7.5 hours at $24 per hour).
3. TNS Conversa, Nov 2009
4. The Health and Productivity Advantage 2009/2010
5. The cost of physical inactivity – Medibank October 2008 (Assumes 240 working days per annum and average weekly earnings of $1158.40 (2008 Yearbook Australia, ABS, pp255) for 52 weeks.)