Return on Investment

“Attracting, developing and retaining good people is a cornerstone of profitable sustainable development for any business”.

June McCabe, Director of Corporate Affairs, Westpac New Zealand

Changes in health risks (e.g., overweight, high blood pressure, high stress), have a strong association with changes in presenteeism (on-the-job productivity loss). Studies show that individuals who reduce their risks see an improvement in productivity, whereas those who gained risks or remained high-risk have deterioration in productivity.

Recent research shows:

Employers who invest in worksite health promotion programmes can see a return of $3 to $6 for each dollar invested in the programs over a two-to five-year period, according to a new review published in the December issue of American Journal of Preventive Medicine (2005).

Each risk factor (e.g., overweight, high blood pressure, high stress, inactive), increased or reduced was associated with a commensurate change in 1.9% productivity loss over time and estimated to be $950 per year per risk changed.

Unhealthy workers average just 49 productive hours of work per month compared to 143 hour per month for the healthy ones (Medibank Private, 2005).

A good workplace wellness program will:

§ Reduce costs associated with absenteeism/sick leave

§ Assist in the retention of good staff

§ Improve productivity by improving employees health - both physically and emotionally

§ Provide tools to help employees cope with the work environment

§ Improve the morale of staff

§ Become an employer of choice

§ Improve teamwork and sociability

§ Satisfy the Health and safety regulations for stress management

§ Reduce ACC levies

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