SUCCESSFUL Employee wellbeing PROGRAMS START IN the C-Suite
Introduction:
Successful employee wellbeing efforts should always translate into more people meeting and exceeding recommended guidelines for healthy living, but the latest research shows that very few people are meeting these guidelines. It’s time for companies to take a new approach; to stop treating employee wellbeing as a perk that sits exclusively in HR and start treating it as a business imperative that is driven by the C-suite.
Poor lifestyles lead to poor health
Adjusted for inflation, per capita healthcare spending in the US has nearly quadrupled since 1980 [1]. 90% of the nation’s $4.3 trillion annual medical expenditures are now spent on mental and chronic health conditions [2]. This trend of worsening health is in large part caused by poor lifestyles, specifically insufficient sleep, unmanaged stress, unhappiness, physical inactivity, and poor nutrition [3]. Many other nations are facing the same issue.
When Corporate Wellness Programs were first implemented in the early eighties, US healthcare spending was a less than $90 a month per person [4]. It made sense therefore, that Wellness Programs started off as a perk within the remit of HR departments. But healthcare costs are now at $12,914 per person.
Poor health costs US-based companies more than $16K per year per employee.
For companies, the cost of poor health appears in areas such as absenteeism, presenteeism, and avoidable turnover [5]. By 2019, poor lifestyle was costing US employers an average of an extra $16k per employee each year. In the UK this number is now north of £5000 per employee annually. These costs are preventable. The pandemic and its aftereffects have added to the problem; levels of burnout are at all-time highs and “quiet quitting” has become a major headache.
Make well-being a central pillar of your business and not just a perk.
The companies that consistently rank among the best places to work make good employee health mission-critical. The benefits of doing so are numerous and visible in rankings and productivity data. In the UK, in addition to other productivity benefits, the top-ranked companies see absenteeism rates of less than half of the national average, 0.9% in 2019 vs 2.5% in the average company [6]. Creating an environment of healthy living needs to be a central focus; holistic and tailored to employees’ specific desires. Don’t let employees just be “passive recipients” of well-being initiatives.
Reversing the trends and driving improvement requires leadership
Integrating employee wellbeing into the core of the company needs to be driven by the C-suite. The infrastructure now exists to do this and to approach the issue in the same way companies address other initiatives considered critical to the business – using data, metrics, and KPIs. Company leaders can now have visibility on what their workforce well-being needs are and where the upside lies, allowing them to address the problem more effectively.
C-suite participation makes a huge difference. The American Psychological Association conducted a study to compare companies where C-suite is involved and committed to well-being initiatives with companies where they are not. 73% of the employees with senior management support and commitment to well-being initiatives said that their organization helps employees develop a healthy lifestyle, versus only 11% who work in an organization without that C-suite support [7].
Data is essential
Despite its presence in most areas of business, the use of data analytics in employee well-being is lagging behind. According to Mercer, only 23% of HR departments say that they have metrics to gauge the outcomes of well-being programs (and only 29% of HR leaders have a formal health and wellbeing strategy in place at all) [8]. In this day and age, this is a glaring oversight. Having relevant population data is the first step of a successful framework. It allows the C-suite to take responsibility; to benchmark best practices and to eliminate ineffective initiatives.
Poor employee health is a major drag on the organization
Performance is suboptimal in employees that suffer from back pain, burn out and/or sleep deprivation. However, employees that manage their stress well, are happier and more productive and less likely to leave your organization.
More perks and initiatives have not resulted in better outcomes
Over the last 20 years there has been a sharp increase in wellness initiatives, yet the data shows that more people now than ever are struggling with their health. A new, more effective approach to well-being is needed. One that is spearheaded by the company management, involving measurable goals and objectives. Progress needs to be monitored and measured. Wellbeing initiatives should always translate into improved population wellbeing numbers.
Corporate health is built upon employee health
The benefits of successful well-being initiatives are significant. Not only do they improve productivity and financial performance, they will also boost brand value, market reputation and employee morale. These are issues that the C-suite thinks about every day. It is time to add employee health to the list, because after all, corporate health is built upon employee health.
We wish you true wealth.
Sources and references:
[1] A dozen facts about the economics of the US health-care system - Brookings, March 2020
[2] Health and Economic Costs of Chronic Diseases - Centers for Disease Control and Prevention, March 2023
[3] Chronic Diseases in America - Centers for Disease Control and Prevention, December 2022
[4] National Health Expenditures, 1980 - Health Care Financing Review, National Library of Medicine, September 1981
[5] The Annual Costs of Unhealthy Lifestyles in the United States – RENDLE, December 2021
[6] UK's Best Workplaces 2020 - Great Place To Work, April 2020
[7] Workplace Well-being Linked to Senior Leadership Support - American Psychological Association, June 2016
[8] 2020 Global Talent Trends Study - Mercer, February 2021
About RENDLE:
RENDLE helps organizations drive lifestyle improvements in a structured, data-driven manner. Our methodology guarantees populations will improve their sleep, stress management, happiness, exercise and nutrition while reducing back pain, smoking and other costly conditions. For more details about how we can help your organization improve contact us.