The Business Case for Employee Health
Running a company requires juggling a lot of different balls: finances, products, customers, clients. And of course, employees. Making sure the right people are in the right place, doing the right jobs. With all these factors up in the air, it can seem daunting to consider an employee’s health (mental and physical) as well as their work. Companies are not doctors or therapists. What place do they hold in ensuring their employees’ wellbeing?
Actually, a big one. Americans spend nearly a third of their adult lives at work. 8-9 hours on an average weekday. The time commitment alone means that people are relying on their employers to care for their health on some level. Companies are in the ideal position to help…or harm. A negative culture around mental and physical wellness will impact people’s lives through sheer exposure. Employers—whether they intend it or not—have an enormous impact on how healthy the people working for them are.
But caring about employee health is not just good morals. It is good business.
Businesses with happy, healthy employees perform better than their peers. For example, a survey by Accenture in 2018 and again in 2023 showed that companies with comprehensive disability policies had increased revenue along with 25% more productivity. Healthy workforces, in addition to producing more, generate fewer healthcare costs overall. Prevention is always easier and cheaper than a cure. That alone makes the case for keeping workers healthy, but there are even more benefits companies can reap.
One of the great problems plaguing workplaces today is “presenteeism.” In which a worker is present at their desk or station, but not performing to their highest abilities due to factors like illness, stress, or dissatisfaction. The loss of productivity from presenteeism—which isn’t always obvious because an employee is there at work, seemingly performing—costs businesses 2-3 times more than direct medical care. Companies that take care of their employees reduce presenteeism and save millions of dollars in the process.
Employee turnover also drops the more employees feel valued and treated as human beings, rather than cogs in the business machine. Over one fifth of employees have considered leaving their jobs in the past year. And it is largely due to cultural problems, rather than issues with compensation. Losing an employee can cost a company 1.5-2x that employee’s annual salary. Not to mention the costs to morale and engagement when someone sees a coworker pack up their desk. If their health and wellbeing is a priority, people stay for longer, meaning companies do not have to bear the cost of turnover. Plus they retain the expertise and experience of long term workers.
There is also the legal angle. The Americans with Disabilities Act requires companies with 15 or more employees to provide reasonable accommodations to disabled workers. That may seem intimidating, but “reasonable accommodations” can be as simple as giving an employee with chronic pain an ergonomic chair, or allowing an ADHD employee to receive written instructions from a manager. These solutions are often low to no cost, and they protect the company legally while keeping employees happier and more productive. People always want to feel seen. Little things go a long way.
Education is also an area where companies can have tremendous positive impact. After identifying areas where their employees’ health might be suffering (such as common chronic illnesses like depression, anxiety, IBS, or even arthritis), some companies have found success in holding talks or seminars to teach employees how best to manage these conditions. Companies like Comerica and Lockheed Martin have found success with this approach, teaching their employees strategies for speaking to doctors, managing symptoms, and reducing stress.
The research is clear on how beneficial caring for employee wellness is for companies. It is not prohibitively expensive, either. This blog will continue to go in depth on specific topics, including what organizations and individuals can do to improve employee wellness. Health is a worthwhile investment with measurable returns. A healthier workforce is a more productive and profitable one. And companies should be at the forefront of making sure their workforces are taken care of.
