Enhanced staff well-being maximises profits!

13 May 2010

According to a new piece of research investing in the health and well-being of employees will directly improve an organisation’s business performance. A study of FTSE-100 companies conducted by Business In The Community (BITC) and Ipsos Mori, found that firms which actively promoted staff well-being and workplace health policies recorded a 10 per cent boost in their financial performance.

A "best practice" group of 37 companies that reported quantitative measures against at least two of the four principles defined by BITC’s Workwell Model, saw a total shareholder return of 61 per cent in 2009. The remaining FTSE-100 companies averaged 51 per cent, the analysis found. Louise Aston, national director of BITC’s Business Action On Health campaign, said: “The research suggests that, for these FTSE-100 companies that strategically manage their employees’ health and well-being, there is a link to enhanced financial performance.

“This reflects the experience of leading companies that are demonstrating that holistic management of these issues results in benefits ranging from higher employee engagement, reduced absence and attrition rates, as well as reputational benefits for the company.”

Aston told PM that workplace presenteeism – coming to work when sick – is estimated to cost UK employers £15 billion a year in lost productivity and is a particular cause for concern. “The cost of presenteeism is one and a half times more than absenteeism, so it’s a massive opportunity for UK plc in terms of maximising the productivity of its people,” Aston said. “There’s an inextricable link between wellness – in terms of physical and psychological health – and engagement and enhanced productivity.”

The research also revealed that four FTSE-100 companies publicly reported the financial impact of addressing health issues in 2009, compared to just one firm in 2007. While Aston described the increase as “heartening”, she called on organisations to address the wellness agenda as part of a cultural shift.

“This is a boardroom issue in terms of leadership and encouraging champions at a senior level. It isn’t just a matter for HR, it’s a bigger issue than that and one that should be running through the DNA of an organisation.”

“Many companies now mention the importance of well-being issues and acknowledge that human capital is a key asset – the management of which is critical to company success.”

If you feel you or your business would benefit from development on well-being please email us on: clare.maberly@primepartnershipuk.com or call us on: 07590848814.