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The tragic story of Denise Prudhomme highlights the importance of a holistic wellness program. Ms Prudhomme’s story made headlines in 2024 when she passed away at her desk at a Wells Fargo in Arizona, and was only discovered four days later.
Richard Branson famously said, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”
Research indicates that businesses derive a significant return on investment when they implement comprehensive employee health and wellness programs.
Health and wellness goes far beyond the physical. According to the American Psychological Association, 79% of employees experience chronic workplace stress. When team members experience burnout, their absenteeism rate increases, while productivity decreases. At scale, this has an overall detrimental effect on an organization.
This article looks at how businesses can unlock better performance through the introduction of corporate health and wellness initiatives.
The Cost of Illness in the Workplace
COVID-19 perfectly illustrated the importance of employee health and wellness. At the most basic level, an unhealthy workforce compromises business. In the United States, 111,820,082 cases were reported as of April 13, 2024. Aside from the obvious issue – sick employees cannot work – there’s also the consideration that people were afraid, confused, and grieving en masse.
The mental aspect of the pandemic also played a role in employees’ ability to work effectively and contributed significantly to the decline in productivity many businesses saw, even when they were able to pivot to remote working environments.
Looking outside of the extraordinary circumstances of COVID, employee illness, in general terms, costs US businesses approximately $575 billion a year. This number is inclusive of loss of productivity due to employees calling in sick, chronic illnesses, and injuries sustained on the job.
But what about the troopers? The people who soldier on in the face of colds and flu and still come to work when they’re ill? It turns out they have a negative impact on profit margins, too. Employees who work while sick are not as productive, and businesses lose between $150 and $200 billion a year.
The bottom line is that the bottom line is affected, and it’s in a business’s best interest to invest in employee health and wellness.
Investing in Employee Health
Addressing employee health and wellness is often framed as a soft policy approach. Often overlooked and undervalued, by employers and employees alike, workplace health and wellness is critical to improving productivity and collaboration.
While many might think that health initiatives are qualitative, and certainly this is true, there’s quantitative evidence to support claims. Johnson & Johnson investigated the impact of their workplace wellness efforts between 1995 and 2008, and this is what they found:
The number of employees who smoke declined by approximately 66%.
A significant drop in high blood pressure.
Physical activity among employees increased.
They saved an estimated $250 million in healthcare costs.
They generated a return on investment of approximately $2.71 for every $1 dollar spent (between 2002 and 2008).
Case study: Google’s Employee Health and Wellness Investment
Google employs approximately 182,000 people worldwide. Given their stringent and extensive hiring process, the company invests close to a billion dollars in recruiting talent. Keeping these employees and maximizing productivity is key to ensuring these resources are well-spent.
As a multinational technology company, they consider their wellness initiatives to be “thoughtfully designed” and aimed at improving “health and wellbeing”. Ultimately, they want to provide tools and interventions that allow employees to prioritize their health.
Some of these initiatives include:
Access to virtual resources for mental health (apps, videos, online support, etc.).
Investing in Diversity, Equity, and Inclusion through support groups for underrepresented employees and allies.
Prioritizing physical wellbeing through on-site fitness centers and massages.
Access to good nutrition through healthy meals and snacks on site.
Google has created a work environment where employees can thrive, and the proof is in their industry dominance. Their offices around the world offer wellness benefits and amenities like free haircuts, nap pods, and on-site doctors.
Benefits of Employee Health and Wellness Programs
While the financial considerations may be reason enough, there are multiple additional benefits to incorporating a health and wellness program. Benefits include:
1. Increased productivity
According to research there is a direct link between physical health and improved productivity. Looking at it through a corporate lens, there’s a valid case to be made for encouraging employees to follow an active lifestyle and adopt healthy eating habits. With improved mental clarity and physical health, the risk of chronic illness and poor health significantly decrease.
2. Improved employee morale
People spend an average of 90,000 hours at work – that equates to a third of a person’s life dedicated to a place of employment. It stands to reason that employees want to feel valued and appreciated by their employers, and a health and wellness program is key to generating that feeling. These initiatives boost morale and enthusiasm.
3. Attracting and retaining top talent
Workplace culture is a key metric that desirable candidates will consider when fielding different opportunities. Candidates at the top of their field will consider more than just salaries and titles when evaluating job offers. A company that prioritizes the health and wellbeing of its employees signals to prospective hires that their overall wellbeing will be taken into consideration. A good health and wellness program also improves employee retention – good health initiatives improve loyalty and satisfaction while reducing staff turnover rates.
4. Reduced absenteeism
Often, healthcare is viewed as simply treating an illness. True healthcare is about maintaining good health. By offering excellent healthcare initiatives, organizations can reduce absenteeism by providing access to medical and wellness resources. This prevents burnout and physical illness, and reduces the number of sick days people need. In the long term, this is a cost-saving measure.
5. Reduced health risks
An unhealthy workforce is a major concern for corporations. Lifestyle diseases are a significant factor in workplace absenteeism and poor performance. Promoting and enabling an active lifestyle through fun runs, healthy lunches, and incentives for better habits (e.g. extra annual leave days for non-smokers) are all efforts that promote wellness and reduce the development of chronic health issues.
Conclusion
Employee health and wellness programs are no longer a tickbox exercise. The numbers don’t lie, and they tell a compelling story; employers perform better when they’re taken care of. An investment in a comprehensive wellness program yields significant returns and enhances the physical and mental wellbeing of the workforce. Additionally, these programs play a role in bringing company culture to life, providing a positive work environment where employees feel valued, motivated, and engaged.
Overall, staff productivity and retention increase, driving profits, while absenteeism and turnover rates decrease.
Employers need to be creative with their programs. The most successful initiatives target mental, social, and physical wellbeing and foster a holistic approach to wellness.
Ultimately, the success of any organization is intrinsically tied to the health and happiness of its employees. By embracing wellness as a core corporate value, companies unlock the full potential of their workforce, driving sustained growth, innovation, and success in the competitive business world.
