To combat the rising cost of employee health care, companies made bold statements about the importance of proactive health management, investing in employee wellness programs and incentives to reinforce their commitment. But just when employees have embraced the wellness doctrine and experts are touting encouraging returns on initial program investments, a perilous economy has forced executives to make decisions that create organizational stress and seem to contradict their public support for employee well-being.
Work force well-being, which encompasses employees’ physical, social and emotional health, has been linked to reduced absenteeism, improved outcomes and sustained engagement, according to studies by Towers Watson. Unless executives balance their concerns for the bottom line with the need for employee well-being, recent gains in controlling health care costs could be in jeopardy.
“The social and psychological fabric of the organization is just as delicate as its balance sheet,” says Kathleen Drummond, senior consultant for the Change Management and Communications Practice at Towers Watson. “The wrong actions and messages can undermine employee well-being at a critical time.”
Smart Business spoke with Drummond about executive messages and actions that nurture healthy profits and people.
How is employee well-being linked to profitability?
When stress is injected into the environment over a prolonged period of time, our research shows that engagement, productivity and health suffer. Highly engaged employees with a poor sense of well-being are more likely to quit, while employees with lower engagement levels and a positive sense of well-being are more likely to stay, leaving employers with a less-productive work force. And when employees work long hours, they often cancel doctor visits, skip workouts and eat on the run, which can exacerbate chronic illnesses like diabetes. Now that a team of Harvard physicians has documented returns of $3.27 for every dollar spent on wellness programs along with a decrease in absenteeism costs of $2.73, it’s imperative that executives continue their commitment to wellness.
How can executives demonstrate support for employee well-being?
Start by holding a mirror up to the executive team, because employees will draw conclusions from your actions and behaviors. If executives regularly work 18-hour days, e-mail the staff at midnight and seem to disregard their own health, employees will conclude that they must adopt a similar work style and emulate your behavior. Participate in on-site health screenings, weight loss or smoking cessation meetings to prove your commitment. And after a stressful period, set the right example by showing employees that you’ve resumed a normal pace and are recommitting yourself to your health.
