Business Benefits of a Healthy Workforce
Top 3 Benefits to a Healthy Workforce
You can bet that the benefits to a healthy workforce affect not just employee satisfaction but your business's wallet. Here are some of the top 3 benefits for businesses who invest in the health of their employees.
1. Cost Savings
Businesses can't afford to not invest in the health of their workforce. Workplace wellness programs have long been popular in Singapore companies. According to The Rand Corporation, who conducted a 10-year study of a Fortune 100 company, they found that the business saved on average $3.80 for every $1 invested on disease management programs and $0.50 for every $1 invested on lifestyle management programs.
Ultimately, both types of workplace wellness programs studied resulted in cost savings for their employees along with the many benefits of a healthy workforce. Click here to read more about the cost savings for a well-executed wellness program.
2. Productivity
Even though an employee may be present at work, those suffering from chronic illness, injury, or other conditions may not perform at the top of their productivity levels. We call this presenteeism.
Unlike absenteeism, presenteeism is rarely tracked despite the significant operational cost to businesses. According to a study by the Population Health Management:
- Those who do not eat healthily are 66% more likely to have high presenteeism
- Those who do not exercise regularly are 50% more likely to have high presenteeism
- Smokers are 28% more likely to have high presenteeism
Investing in a healthy workforce and developing a strategic workplace wellness program can reduce the levels of presenteeism and boost the productivity of employees. For other ways to take care of your workforce, take a look at ValueChampion's guide on how to hire employees for your small business in Singapore.
3. Employee Retention
Simply put, healthy employees increase employee retention. The more a business invests in maintaining the physical and mental health of their employees results in lower turnover rates. Turnover rates can cost a business a significant amount of resources and money over time.
- Training
- Deteriorating product or service quality
- Low employee morale
- An overall reduction in return on investment
A study by Willis Towers Watson (formerly known as Towers Watson) from the Business Group on Health indicated that companies implementing effective wellness programs have significantly lower voluntary attrition rates than companies that do not. This means that businesses can spend more money on products and services than recruitment and re-training.
Conclusion
Singapore businesses who invest in the health of their people should not think of it as a sunk cost, but rather an opportunity to reap significant returns on smart investments into their team. Businesses will not only save money on health care costs but increase productivity and employee retention. Remember to check out ValueChampion's guide for other ways to take care of your workforce and hire employees for your small business in Singapore.
Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.