Boosted Profits
It costs more to provide health and disability benefits
to an employee with cardiovascular disease
than an employee with an injury.
Creating a health sustaining environment (and healthy employees) has the potential to greatly reduce costs, and ultimately boosts profits through:
1) Lowered Health & Disability Costs
Many large companies have established Health, Safety and Environment departments (HS&E) to ensure due diligence to employee safety and environmental responsibility. Safety and environment are given deserved recognition as they are heavily regulated. While these areas are vital, the “health” segment is often undervalued and neglected.
This is unfortunate for the bottom line, as significant employee benefit and disability costs savings are achievable. The latest Health Canada data (1998) reveals that cardiovascular diseases cost the Alberta health system $488.2 million more than injuries. This implies that the employee benefit costs to a company are also 42% more for an employee with cardiovascular disease than with an injury!
Injuries vs Cardiavascular Diseases: Selected Costs, All Ages, Both Sexes, Alberta |
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(All costs are in 1998 Canadian dollars unless otherwise indicated, and are rounded to the nearest $1,000,000.) |
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Cardiovascular diseases are 42% more costly than Injuries! |
Focusing on improving employee health not only decrease health costs related to disease and injury, but also reduces the costs of absenteeism and sick days. This would represent substantial cost savings to your company.
2) Reduced Recruitment Costs |
“As a result of the competition for talent, the ageing workforce and the shrinking of the labour pool, companies have seen their recruitment costs rise dramatically. Estimates from human resource professionals and consultants indicate that to recruit a new staff member it costs them between two and four times the annual salary for the position.” Source: 'The Business Case for Work-Life Balance (Benefits and Costs)', Government of Canada, HRSDC http://www.hrsdc.gc.ca/en/lp/spila/wlb/16benefits_costs_businesscase.shtml#3, viewed March 24, 2008. |
Avoid this high cost by creating an environment that would not only satisfy employees, but create company pride and the happiness to refer candidates. |
3) Lowered ‘Opportunity’ Costs
Although it is difficult to quantify, it's very important to recognize the ‘opportunity’ costs of a stressed, ill, injured workforce in terms of lost innovation, quality and productivity.
4) Being An Employer Of Choice |
“In a recent study, researchers at the University of Dayton, Ohio, found that, as a group, 60 companies that made up "Fortune's 100 Best Companies to Work For" list for 1999 produced better financial performance (based on five market-based performance measures) than a group of comparable companies in their respective industry that were not on the list.” Source: Adapted from Conference Board of Canada Report October 2002. 'Health Promotion Programs at Work ' A Frivolous Cost or a Sound Investment?'. |
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Last Updated: June 25, 2010
