IN THESE recessionary times, you are having to slash costs, cut jobs, and make staff left behind work longer, harder hours, and be more productive and innovative. The financial crisis means you expect them to do all this for no more pay — in some cases even for less pay.
Not surprisingly, this is taking its toll on a key resource for the sustainability and competitiveness of your business: the health of your workforce.
The experts say it is precisely in these recessionary times that you should make a stronger investment in healthy living and working conditions. One way to do that is a special focus on workplace wellness programmes.
The reality is that employers in organisations of all sizes and industries are looking at ways to save money on health care, disability, absenteeism, and other factors that affect bottom lines. Many still harbour doubts about the cost effectiveness and ROI (return on investment) of workplace wellness programmes they have implemented or may be considering implementing.
The recent conference in Johannesburg hosted by Discovery Vitality on the theme: Investing in Health at the Workplace, went some way to dispel those doubts. Speaker after speaker supported the view that an effective workplace wellness programme is in reality an investment, not a cost.
Conference topics provided practical examples of best-practice models, mostly international, and the benefits of a preventative approach with the provision of employee wellness programmes as a standard employee benefit.
The critical components such programmes need to incorporate to ensure long-term, high-ROI solutions to the many problems facing employers, were also highlighted.
So too were the consequences of what has become an outdated model of focusing resources exclusively on treating those who are already sick or disabled — and why this can no longer be supported in an era of shrinking margins and rapidly escalating costs of treatment.
Discovery public health specialist Dr Leegale Adonis spoke on making business “cents” of workplace wellness programmes. She says there is “solid evidence” to encourage the implementation of and investment in workplace wellness programmes.
“The increased push for productivity has many adverse effects on workers — including negative spin-offs on well-being, self-esteem and morale,” she says.
This can lead to increased absenteeism, more on-the-job accidents and perhaps even increased health care utilisation and thus higher health care costs.
“The increased health and productivity risks can be classified into medical, psychological, behavioural and organisational factors that can be affected negatively. “This impact is thus seen not only at an individual but also at a corporate level.
“In fact, studies have shown a significant negative correlation between employee health and wellbeing and decrease in productivity levels. So the better the health and well-being of employees, the less likely productivity can be expected to decrease.”
Good workplace wellness programmes are about encouraging staff to make healthier choices, says Adonis.
Companies that do so, reap long-term savings not just in terms of reduced absenteeism, disability and health-care costs. ROI analysis demonstrates that an effective wellness culture in a corporate environment makes savings in other areas that include “presenteeism” (workers who are mentally as well as physically present, and thus more productive), as well as retention, recruitment and reputation.
“It pays to keep people healthy,” Adonis says. “Even for the most serious diseases, it is still more cost-effective to practice health promotion than to venture into disease management.”
From an employer’s perspective the most expensive diseases are shown to be conditions associated with hypertension, heart disease, depression and other mental disorders, and arthritis, she says.
Even those who are deemed to be simply “at risk” are costly, and the risk may not be where you automatically assume it to be. Results of one study have shown that workers in the 19 to 34 age group have higher health care costs than a 75 year old who was low risk, says Adonis.
Establishing risk profiles from high to low risk, and the earlier the better, is essential, she says.
For example, research shows that on average, obese workers have up to 21% higher health care costs compared to normal weight employees.
Physically inactive workers are also shown to cost medical schemes more than active workers. Studies show that 31% of costs related to heart disease, stroke, colon cancer and osteoporosis can be attributed to physical inactivity.
When it comes to who is getting it right, Adonis cites research on Citi Bank’s health management programme, for approximately 47000 eligible employees that included a primary as well as secondary prevention component.
The programme cost around 1,9m, and realised benefits at around 8.9m equating to a return on investment of 4.7 for every 1 spent, she says.
At Highmark the total cost of a wellness programme was 1335524 for 12000 staff, and after four years showed total savings of 808403, a return of investment equal to 1.65 per 1.
That’s all international research, of course, but Dr Craig Nossel, head of vitality wellness for Discovery says we can look forward to South African research in the near future.
Discovery is involved in ongoing research with the University of Cape Town, he says. It is looking at data from corporate clients to see which interventions are making a difference.
In effect, the research is looking into whether we are “behaving normally in an abnormal environment or vice versa”, Nossel says. It is also investigating “behavioural economics” — how we make decisions about our wellbeing.
“We tend to be overly optimistic, and don’t necessarily behave rationally when it comes to our health,” says Nossel. “We don’t think we will get sick.”
Clearly there is evidence that benefits of wellness programme exist, but there is also a need to look at how best it can translate into the corporate environment.
“We also need to look at work environments, and factors such as computers, and canteens with unhealthy food options, and how these can be adjusted to help staff make healthier choices more easily,” Nossel says.
’s wellness manager Beauty Zondi is responsible for the physical, emotional and mental well being of a staff of over 8000. She says employers have an ethical and moral responsibility, as well as a legal one, to ensure that their workforce operates under healthy and conducive environments.
“It’s also in employers’ best interests to ensure that staff can deliver what is expected of them,” she says.
It makes sense, then, that apart from providing raw materials and resources, you also need to be aware of the many psycho-social dynamics at play in creating a “healthy” workforce”, Zondi says.
“Sometimes, people simply need information and don’t know where to find it. On other occasions, they can benefit from a good talk with someone who is impartial,” she says.
Workers also have a responsibility of course. Zondi says that is to ensure that they live as healthily as is possible so that they can enjoy as “fruitful” (by their own definition) a life as is possible. In many instances, this overlaps with an employer’s interests , she says.
The bank has a comprehensive integrated offering of services available to staff that varies according to regional needs, and is supplied via a network of specialist internal and external service providers, she says.
Adonis says: “Costs follow health risks — in both directions. Gains in employee wellness and costs can clearly be tied to wellness programmes.”
We also need to look at work environments, and factors such as computers, and canteens with unhealthy food options, and how these can be adjusted to help staff make healthier choices more easily