Whether you provide wellness options like a fitness center or healthy food or you provide onsite medical or mental health care, you will realize cost savings in your workplace health program as your employees take advantage of the offerings and their health improves. Investing in your employees health and wellness will allow you to realize some pretty major cost savings in the long run. Not convinced? Here are a few ways healthy employees cost your company less.
Less Sick Time
It is estimated that absenteeism (employees calling out of work) costs employers roughly $3,600 per year for each hourly worker and $2,650 each year for salaried employees. Presenteeism (employees coming in to work unwell or distracted by personal issues and therefore less productive) in the U.S. is estimated to cost around $150 billion a year. Both can dramatically impact your workplace health, productivity, and revenue.
It should come as no surprise that healthier employees will reduce the occurrence and cost of both of these major issues. A study by Brigham Young University found that absenteeism is reduced by 27% in employees who maintain a good diet and exercise regularly.
Decreased Healthcare Costs
Healthy employees will have lower rates of illness, both chronic and short-term. Lower chronic illness means savings for your company and your employee in doctor visits, surgeries, hospital stays, and prescriptions. Less short-term, acute illness means less days taken off for sickness, less sickness being passed around the office, and less visits to high-cost facilities like urgent care.
Having a healthier workforce will lower the cost of healthcare for both you and your employees and can help drive down your insurance premiums as overall health and wellness increases.
Fewer Workplace Injuries
Healthy employees are typically more agile, more flexible, and generally more fit overall for physical movement. They also tend to have more energy and be more alert of their surroundings.
All of these factors lead to them being more capable of stressful physical working conditions and less likely to experience an injury on the job. Less workplace accidents and injuries means less time lost from work due to injury and less costs associated with workers compensation and treatment costs.
Better Employee Retention
According to the Work Institute’s 2017 Retention Report, the replacement cost is $15,000 per person for an employee earning a median salary of $45,000 a year. When workplace health is high, employees tend to report higher job satisfaction, they outperform unhealthy counterparts which can lead to a greater sense of accomplishment as well as higher levels of recognition and incentives.
Having healthier employees will not only increase productivity across the board, but your employees will be happier to be at work, satisfied with their jobs, and much more likely to stay with your company. Read about how onsite clinics can increase employee retention, here.