HR Pulse

Migrating from non-core to core

Is wellness a core or non-core business issue? Does wellness have an impact on business objectives, or is it simply a “nice-to-have” intervention? Is there a business case for wellness?

Yes. Employee wellness programmes pay dividends when it comes to improving productivity, morale and overall health costs within an organisation.

Numerous organisations of different sizes are searching to find the programme that best meets their business goals and their workforce's needs. Wellness programmes can range from simple health screenings to the provision of more complex full-scale, on-site and online tools and programmes. The programmes may include different elements, but their objective is the same - they assist employees to get healthier and they save money.

Why should employers care about employee wellness?

• The average employee spends over 40 hours a week at work
  
  
• The average employee has 50% of his/her meals at work
  
  
• Normally employees exercise during working hours

Employee wellness programmes initially came into existence as Employee Assistance Programmes (EAP) which were designed to help employees who were in danger of losing their jobs, due to addiction and related problems. Over time, these programmes have broadened to include psycho-social wellness, financial and legal wellness and support through various crisis events. However, their objective has remained the same; to enhance employee productivity.

Core or non-core

“About 30 years ago, the term ‘Wellness’ was introduced into business vernacular as a result of…the increasing societal emphasis on fitness and healthy lifestyles,” says wellness publisher, Diane McReynolds.

Although organisational managers agree that wellness is a business imperative, wellness department managers must demonstrate that their programmes have the ability to yield measurable gains to the bottom line. Numerous businesses are experiencing decreasing revenues, shrinking budgets and increasing environmental uncertainty, and therefore think that investment in organisational wellness is non-core. However, there is increasing evidence to show that wellness is a core business issue and impacts employee productivity and ultimately the bottom-line.

A comprehensive wellness programme incorporates the World Health Organisation’s definition of health, which is “the extent to which an individual or group is able to realise aspirations, satisfy needs and to change or cope with their environment”. This definition recognises the employee as a whole person who requires a variety of health supports and environmental adaptations to allow them to live a full life.

It has been estimated that close to 90% of all healthcare costs are due to preventable illnesses, so it makes sense for employers to be at the forefront of effective wellness management. Studies have shown that employees, who are in the best physical and mental health, are more likely to come to work on a regular basis and perform better when they are at work. A report from the Employee Assistance Professionals Association, published by American Business Publishing in 2002, showed that for every dollar invested in wellness, there was a US $5-$7 saving or increased return for the company, a 66% decline in absenteeism among those offered company sponsored support programmes, and a 37% reduction in sick leave.

High levels of employee turnover and absenteeism are a rising cost for businesses. Businesses with employee wellness programmes have found that they can use their programme to attract employees who value the emphasis on employee welfare.

Most organisations are aware of the fact that:

1. Wellness is a business imperative which has a positive and measurable impact on productivity.

2. Wellness has measurable benefits and organisations can utilise the power of analytics to enhance the program.

Wellness needs to be linked to organisational productivity and improvements quantified in terms of the organisational bottom line. Linking productivity to wellness moves it to a core business issue, rather than a simple health issue.

Although certain high-risk organisational issues warrant intervention, compelling evidence suggests that a variety of other socioeconomic factors significantly affect people’s health and wellness, including: occupation, psychosocial issues, work environment, occupational risks, income, and education. These factors account for many health disparities within organisations and may be root causes of unhealthy behaviour. The next level of wellness intervention involves the customisation of the wellness programmes based on specific organisational dynamics. Investing in an effective wellness programme involves careful study of how and why the programme fits into a specific organisation.

Wellness management programmes have a positive impact on recruitment, retention, morale and productivity. When an employer partners with employees to share the responsibility of affordable health care costs, a culture of health and wellness is developed within a company. The value of investing in a well-constructed wellness programme has been proven in small, medium and large companies. Employers need to seize the opportunity to reduce healthcare costs, prevent illness and break the cost spiral.

Author: Khusela Sangoni is an Executive in Marketing and Business Relations. She received a BCom.