Rolls Royce (UK) revs up the profit

Rolls Royce in the UK is a good example of how an appreciation of workplace health and an appropriate action plan can deliver tangible results and positively impact the bottom line.

The company enjoyed a fall in the average days lost per employee due to sickness from 6.8 to 4.2 days after introducing a number of measures. One of which enabled all those absent for four or more weeks to benefit from an action plan, including, for example, access to physiotherapy. Source: The cure for an ailing workforce, Stephen Overell, Financial Times 2 February 2006.

 Every year illness costs New Zealand businesses more than $940 million.  Conversa Global Research, July 2005

Rolls Royce (UK) revs up the profit

Rolls Royce in the UK is a good example of how an appreciation of workplace health and an appropriate action plan can deliver tangible results and positively impact the bottom line.

The company enjoyed a fall in the average days lost per employee due to sickness from 6.8 to 4.2 days after introducing a number of measures. One of which enabled all those absent for four or more weeks to benefit from an action plan, including, for example, access to physiotherapy. Source: The cure for an ailing workforce, Stephen Overell, Financial Times 2 February 2006.

 Every year illness costs New Zealand businesses more than $940 million.  Conversa Global Research, July 2005

 Return on investment

 An average $100 was lost for every employee absent for a day. For the whole economy, the savings from workplace health insurance in terms of loss of output avoided is $117 million a year. Source: Employment Today, July 2008

A healthy, engaged and productive workforce is critical to maximising business performance and driving sustainable growth. There is a measurable link between a person’s health and lifestyle and how productive they are at work. 1

For every dollar invested, you could get three back

 Established indicators of accidents, sickness and absence show positive trends and demonstrate the value to the business as well as the staff. Like all good investments, the return is greater than the investment.  Dave Smith, Managing Director, Parcelforce Worldwide (UK).

Health and safety activities have direct economic benefits2. They help curb absenteeism3 and enhance productivity and efficiency4.

Companies with the most effective health and productivity programmes experienced superior performance in three significant areas: They achieved 20% more revenue per employee, have 16.1% higher market value and delivered 57% higher shareholder returns. 5

The Switch2Well experience

Southern Cross’ investment in developing an innovative wellness programme for employees has been recognised by the 2008 Fitness Life Award for Corporate Health Initiative of the Year.

In the year following launch, 'Switch2Well' has surpassed expectations in terms of staff participation - an incredible 97% of its 570 employees have participated in some aspect of the programme.

Southern Cross is reporting on the impacts of Switch2well against key business metrics including absenteeism and turnover. So far the results have been impressive. Year-on-year quarterly comparisons for unplanned leave for sickness have consistently decreased, while staff turnover has reduced. Latest data is demonstrating the programme is self-funding through savings achieved in this area. The Southern Cross 2008 Annual Report acknowledges that the investment in Switch2well is “returning significant dividends” in terms of improved personal health, significant cost savings for the business, and an increase in productivity. 

Productivity gain for Parcelforce (UK)

After two years, the Parcelforce Safer Workplace and Healthier Workforce programme contributed towards 12.5% productivity increase, 50% customer service improvement, 45% fewer accidents and a 33% reduction in sickness absence.

Parcelforce provided on-site health assessments and advice, improved absence management, health education programmes, gyms, healthcare and other resources promoting wellbeing.Source: Business in the Community, October 2007

Sources:
1. Australia. Sick at work, May 2007, Medibank Private.
2. Cooper, C.L. & Williams, S. (1994). Creating Healthy Work Organisations.
3. Leutzinger, J and Blank D (1991). The effect of a corporate fitness programme on perceived worker productivity.
4. Pelletier, B, Bonds M & Lunch W (2004). Change in health risks and work productivity over time.
5. 2007/2008 Staying@Work report, Building an Effective Health & Productivity Framework, Watson Wyatt.

 Return on investment

 An average $100 was lost for every employee absent for a day. For the whole economy, the savings from workplace health insurance in terms of loss of output avoided is $117 million a year. Source: Employment Today, July 2008

A healthy, engaged and productive workforce is critical to maximising business performance and driving sustainable growth. There is a measurable link between a person’s health and lifestyle and how productive they are at work. 1

For every dollar invested, you could get three back

 Established indicators of accidents, sickness and absence show positive trends and demonstrate the value to the business as well as the staff. Like all good investments, the return is greater than the investment.  Dave Smith, Managing Director, Parcelforce Worldwide (UK).

Health and safety activities have direct economic benefits2. They help curb absenteeism3 and enhance productivity and efficiency4.

Companies with the most effective health and productivity programmes experienced superior performance in three significant areas: They achieved 20% more revenue per employee, have 16.1% higher market value and delivered 57% higher shareholder returns. 5

The Switch2Well experience

Southern Cross’ investment in developing an innovative wellness programme for employees has been recognised by the 2008 Fitness Life Award for Corporate Health Initiative of the Year.

In the year following launch, 'Switch2Well' has surpassed expectations in terms of staff participation - an incredible 97% of its 570 employees have participated in some aspect of the programme.

Southern Cross is reporting on the impacts of Switch2well against key business metrics including absenteeism and turnover. So far the results have been impressive. Year-on-year quarterly comparisons for unplanned leave for sickness have consistently decreased, while staff turnover has reduced. Latest data is demonstrating the programme is self-funding through savings achieved in this area. The Southern Cross 2008 Annual Report acknowledges that the investment in Switch2well is “returning significant dividends” in terms of improved personal health, significant cost savings for the business, and an increase in productivity. 

Productivity gain for Parcelforce (UK)

After two years, the Parcelforce Safer Workplace and Healthier Workforce programme contributed towards 12.5% productivity increase, 50% customer service improvement, 45% fewer accidents and a 33% reduction in sickness absence.

Parcelforce provided on-site health assessments and advice, improved absence management, health education programmes, gyms, healthcare and other resources promoting wellbeing.Source: Business in the Community, October 2007

Sources:
1. Australia. Sick at work, May 2007, Medibank Private.
2. Cooper, C.L. & Williams, S. (1994). Creating Healthy Work Organisations.
3. Leutzinger, J and Blank D (1991). The effect of a corporate fitness programme on perceived worker productivity.
4. Pelletier, B, Bonds M & Lunch W (2004). Change in health risks and work productivity over time.
5. 2007/2008 Staying@Work report, Building an Effective Health & Productivity Framework, Watson Wyatt.

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