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Productivity and work performance

Did you know that 51% of illnesses and disabilities are attributable to poor lifestyle1 habits?

The savings associated with maintaining a low risk employee are 2 to 3 times greater than the savings achieved by improving the health of a higher risk employee. Unfortunately, in the absence of intervention, each year 2-4% of low-risk individuals will migrate to a higher risk2. This increase has a direct impact on productivity and absenteeism costs.

Budgets are often tight and we try every way we can to cut spending, but what are the hidden costs of not investing in the health of one’s employees?

Business Productivity: A Few Facts to Remember

  • Fatigue, insomnia and depression are the most important factors affecting your employees’ work performance.
  • Four lifestyle factors – obesity, physical inactivity, poor nutrition and substance abuse (e.g.: tobacco, alcohol) – increase the absenteeism rate by 50%.
  • The cost of lost productivity due to employees suffering from a chronic health condition, whether physical or mental, is almost 400% higher than the medical costs of treating the disease itself.
  • A survey conducted in December 2014 by the risk management company Morneau Shepell with 442 Canadian human resources professionals revealed that 43% of respondents mentioned employee engagement is the main challenge to higher productivity and one out of five employees (22%) cited leadership.
References

1. Watson Wyatt, Staying At Work! Watson Wyatt, 2000.
2. Watson Wyatt, Staying At Work! Watson Wyatt, 2000.