Calculating the Business Impact of Employee Health

Let’s face it: work can be stressful. Deadlines, meetings, and the occasional office drama can take a toll on even the most resilient among us. When employees aren’t feeling their best, whether physically, emotionally, or mentally, it doesn’t just affect them personally; It ripples through the entire business.

As it turns out, employee health and wellbeing influence productivity, morale, and a company's financial performance. In fact, this brief article brought to you by Physicians Educate People will explore this well-known but often-overlooked fact.

At Physicians Educate People, our mission is to highlight the ‘care’ in healthcare. Our strategic solutions for healthcare professionals are meant to improve the quality of life for patients, healthcare providers, and supporting staff.

The Hidden Costs of Poor Health

Consider an employee who arrives at work exhausted due to stress or illness. They're present but not fully engaged. Also known as “presenteeism,” this phenomenon leads to decreased efficiency and increased errors.

Believe it or not, the World Health Organization (WHO) reports that depression and anxiety result in 12 billion lost workdays annually. That costs the global economy an estimated $1 trillion each year.

On the other hand, the WHO's 2023 Mental Health at Work report indicates that organizations with robust mental health programs experience 35% higher productivity levels.This data suggests that investing in employee well-being isn't just a moral imperative but a strategic business decision.

The Domino Effect of Health Hazards

It’s not just about productivity. Employee health also affects, well, the health and safety of an establishment. Companies that prioritize these areas are viewed as responsible and ethical while neglect can lead to incidents that tarnish public perception.

In the age of social media and employer review sites like Glassdoor, a company’s reputation is more fragile than ever. Employees aren’t shy about sharing their experiences, and a toxic work environment or lack of health support can quickly go viral.

A 2023 survey by Deloitte found that 68% of employees would consider leaving a job if they felt their employer didn’t care about their well-being. Worse yet, 52% said they would actively discourage others from working there.

The Threat of Health and Safety Violations

It’s not just employees and customers that will punish unsafe and indifferent businesses. The Occupational Safety and Health Administration (OSHA) enforces strict regulations to ensure safe and healthy workplaces, and violations can result in hefty fines.

But the financial penalties are just the beginning. Health and safety violations can lead to lawsuits, increased insurance premiums, and even criminal charges in severe cases. For example, a manufacturing company in Ohio was fined $1.5 million in 2023 after an investigation revealed that poor ergonomic practices led to multiple cases of chronic back injuries among employees.

Overall Health Affects the Business Overall

When you add up the financial costs, reputational damage, and legal risks, it’s clear that employee health is a critical factor in business success. Let’s not forget the positive side of the equation though. Companies that prioritize health and well-being often outperform their competitors.

A 2023 study by Harvard Business Review found that companies which implemented comprehensive wellness programs saw a 25% reduction in absenteeism and a 20% increase in productivity. These companies also reported higher employee engagement which directly correlates with better customer satisfaction and increased profitability.

What Can Businesses Do?

The evidence is clear: investing in employee health isn’t just the right thing to do; it’s also a smart business strategy.So, where do you start? Here are some actionable steps companies can take:

1.     Offer initiatives like gym memberships, mental health resources, and nutrition counseling.

2.     Encourage flexible work arrangements and generous PTO policies.

3.     Invest in comfortable furniture and equipment to prevent musculoskeletal disorders.

4.     Offer access to counseling, stress management workshops, and mindfulness training.

5.     Encourage open communication about health concerns and lead by example

If you’re a business leader, the question isn’t whether you can afford to prioritize employee health. The question is whether you can afford not to.Businesses looking for healthcare consulting or medical record review services can benefit from Physicians Educate People.