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Standard Life's Protection & Healthcare newsletter for advisers
September 2006

Workplace wellness - is it cost effective?

Did you know...?

  • Sickness absence costs the UK economy over £13bn each year (CBI, May 2006)
  • 168m working days were lost to absence in 2004 (CBI)
  • 87% of people would prefer to work for an employer that supports their health and well-being (Standard Life Healthcare Attitudes to Healthcare survey 2004)
  • Investing in health and well-being can generate a return on investment of £3.73 for every £1 spent through reduced absence and increased productivity (vielife/IHPM Health and Performance Research Study, 2005)

    Wherever we look we are bombarded with messages about our health. Have you eaten five portions of fruit and veg today? Have you drunk two litres of water? What about thirty minutes of exercise? Are you eating low GI or cutting out carbs?

    Previous generations never seemed to worry about their health as we do - active lifestyles and nutritious food in a pre-microwave age kept them in good shape. But we are constantly told that we need to get healthier or face the consequences.

    As the clock ticks on our obesity time-bomb, it's not just through the media that we receive information about our health; the government gets in on the act too. And one of the areas on which the government is focusing is the workplace, saying "We want to create workplaces where we both protect the health and well-being of employees and optimise the opportunity to help people improve their own health and well-being"(1) .

    So, is this just another government initiative? Another 'cones hotline' destined for that pile marked "It seemed like a good idea at the time." Or is it just another way of imposing costs on businesses by encouraging hard pushed employers to do even more for their employees? The answer is... none of the above. Business people should welcome the government's promotion of health in the workplace.

    Companies that look after employees when they are ill and work hard to support their health reap the rewards through reduced absence and increased productivity. One 2004 study published concluded that there was a difference in productivity of up to 25% of the working day between the most and least healthy employees in a company. It said that as health risk factors such as physical inactivity or high stress levels increased, productivity declined and absence rates grew worse(2).

    Low productivity and sickness absence due to preventable health conditions cost employers money. A recent UK based study compared the health of two groups of employees at a major company(3). One group was provided with a health promotion programme that included online health assessments and personalised content, on site seminars and health promotion events as well as paper based information and advice. This group was compared with a control population who did not receive health support.

    The study found that after 12 months the number of employees in the target group at "high risk" of developing health problems had fallen by 29%. Correspondingly the number of people rated "low risk" had increased by 18%. This is clearly good news for those people who have improved their health. It is also good news for the employer as employees who reported better health also said that they were more effective at work.

    But is promoting good health at work cost effective? Leading health management consultancy vielife, who carried out the UK study detailed above, concluded that through increased productivity due to better health, the health promotion programme generated £3.73 for every £1 spent. This is fantastic evidence of the way in which improved health can improve business performance.

    Reduced absence can also be a consequence of promoting health at work. This is particularly significant with 90% of organisations describing sickness absence as a significant or very significant cost(4). In Standard Life Healthcare we saw absence decrease by nearly 5% in the first year of our own health programme and since then we have continued to see encouraging results.

    One final aspect to consider is the popularity of health programmes with employees. Research carried out by Standard Life Healthcare showed that 87% of people would prefer to work for an employer who supports their health and well-being(5). Additionally, over half of businesses say that the impetus for providing health support comes from staff(6).

    Health in the workplace will continue to move up the corporate agenda, especially with 'Investors in People' incorporating health in the near future. There is already excellent evidence to show that investing in health is cost effective as well as the "common sense" conclusion that healthy people perform better.

    There is lots of support and advice available for employers as well as services from providers like Standard Life Healthcare that can equip a business to support the health of its staff. As health becomes more important to us all, let's hope that corporate Britain does its bit to defuse the obesity time-bomb.

    These are some websites that contain helpful information about healthcare in the UK:

    Department of Health - this is where the Department of Health issues press releases on waiting times for diagnosis and treatment. Check back regularly for updates.

    Latest news - the latest news about the Department of Health and the NHS

    NHS Services - what are NHS services like in your local area?

    Healthcare regulator - the healthcare regulator assesses the quality of NHS and independent hospitals

    BBC medical notes - BBC medical notes covering lots of interesting topics

    Ill health and business - facts and figures about the impact of ill health on UK business

    CBI - latest research from the CBI about the costs of workplace absence

    Vielife - cutting edge research on the benefits of workplace health from one of the UK's leading health management consultancies

    Sources:

    1. Health, Work & Well-being: Caring for our future (DWP, DH, HSE, 2005)
    2. vielife Corporate Health and Well-being Management: a compendium of research evidence (2005) p.36
    3. The vielife / IHPM Health and Performance Research Study (2005)
    4. CIPD; Employee absence 2003: A survey of management policy and practice (2003 NO
    5. Standard Life Healthcare Attitudes to Healthcare Survey 2004
    6. Human Resources Magazine survey May 2006

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