The financial impact of prioritising employee health
Investing in employee health is not just the right thing to do – it’s also a smart strategic move. A well-implemented employee wellness programme can deliver a substantial return on investment (ROI) for the business. In fact, according to a Harvard Business Review study, comprehensive wellness programmes can yield an ROI of $3.27 (equal to about R60) for every dollar spent on medical costs, and $2.73 (just under R50) for every dollar spent on absenteeism. These savings are achieved through reduced healthcare expenses and fewer lost workdays due to illness.
Implementing preventive care strategies
Preventive healthcare is at the core of effective wellness programmes. Routine check-ups and screenings can detect health issues early, preventing costly treatments down the line.
Encouraging employees to engage in regular health assessments helps identify risk factors for chronic diseases such as diabetes, hypertension and heart disease. Early intervention can reduce these risks, leading to healthier employees and lower healthcare costs for employers.
Promoting healthy lifestyle choices
In addition to preventive measures, promoting healthy lifestyle choices is key to maintaining employee wellness. Encouraging physical activity, balanced nutrition and mental well-being can lead to a more engaged and productive workforce.
Companies that invest in comprehensive wellness programmes see improvements in engagement, retention and productivity, as highlighted by Forbes.
Healthy lifestyle choices are not just about physical health. Mental health plays a critical role in employee productivity and retention. Deloitte's blueprint for workplace mental health programmes highlights that addressing mental health issues can significantly reduce costs related to absenteeism and presenteeism (when employees are at work but not fully productive).
Resources such as Employee Assistance Programmes (EAPs) and mental health workshops can create a supportive work environment that promotes psychological well-being.
Long-term financial benefits
The long-term financial benefits of investing in employee health extend beyond immediate cost savings. Healthy employees are more productive, which directly impacts a company's bottom line.
Reduced absenteeism and presenteeism lead to higher efficiency and output. Additionally, companies that prioritise employee health often see improved staff retention rates, reducing the costs associated with hiring and training new employees.
An article by HR Future points out that companies with robust wellness programmes experience lower turnover rates and higher employee loyalty. Employees who feel valued and supported are more likely to stay with the company, contributing to a stable and experienced workforce.
Investing in employee health is a strategic decision that pays dividends in the form of reduced medical costs, increased productivity and long-term financial stability. Companies that recognise and act on this will be well-positioned to flourish in the competitive business environment.
For more information or support related to the physical health of employees, let us help you. Email hello@lifehealthcare.co.za, call (+27) 86 123 4123 to speak to one of our business development managers, or visit our website.
