Minimising risks
By proactively managing the health and wellbeing of your employees, you can do your business a world of good. Risks that every organisation faces can be minimised with a carefully planned health and wellness solution.
Increasingly, health and productivity are gaining attention as relevant business issues. At a time when businesses are realising the importance of investing in human capital there has also been a shift in mindsets from health care as a cost that needs to be managed to health and productivity as a critical business investment.
What is wellness?
We believe the word ‘wellness’ describes being in a state of optimal wellbeing. It means feeling good most of the time - at work and at home - and having the ability to cope with life’s pressures in a positive manner.
The risk of reduced productivity
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: NZIER Research July 2008
New Zealand's medium-to-longer-run growth prospects and general standard of living critically depend upon its labour productivity performance. Relative to most OECD countries, the level of labour productivity in New Zealand is low and, when measured as GDP per worker, the historic growth performance has also been relatively poor. The apparently poor performance is a key concern for policymakers and has attracted much research attention. Source: Reserve Bank of New Zealand Research Bulletin 2007
In 2006/07, two out of three adults (65.7%) had been diagnosed with a health condition that lasted, or was expected to last, six months or more. The most common health condition for adults was medicated high blood pressure (13.6%), followed by asthma (11.2%). Other common health conditions were ischemic heart disease, arthritis, neck or back disorders, migraine and eczema. 1
It has been estimated that nearly 10% of the UK’s gross national product (GNP) is lost each year due to job generated stress. 2
Wellness is a win-win
Companies that are among the first to introduce wellness programmes are likely to benefit to a larger degree from potential productivity gains than those businesses that wait.
Importantly, investing in employee health can create a win-win situation for employers and employees alike. Employees can enjoy better health and improved quality of life while companies realise more productivity from their employees. 3
People with Southern Cross health insurance take an average of 14 days off work due to illness requiring surgery, while uninsured New Zealanders take an average 48 days off work. 4
The risk of increased worker absences
Widespread failure to invest in workplace health and wellbeing can have dramatic consequences for companies. In the UK, 175 million days were lost to sickness absence in 2006, costing the economy ₤13.4 billion.5
One third (33%) of all workplace absence is caused by illnesses resulting from poor posture, improper sitting habits, and a lack of knowledge of sitting correctly. 6
75% of people who are alcohol dependent are also employees. 7
Three risk factors contribute to four chronic diseases, which cause over 50% of deaths worldwide. Tobacco use, poor diet and lack of physical activity contribute to the four major chronic diseases – heart disease, type 2 diabetes, chronic lung disease and many cancers.8
Have you considered the cost of employee absence to your business?
Direct costs of absence
- Daily rate of pay for replacement staff.
- Other costs incurred, i.e. overtime paid to other staff to cover the absence, engagement of temporary staff etc.
Indirect costs of absence
- Time, paperwork and administration for the line manager and HR/Payroll.
- Inconvenience – the amount of manager’s time diverted from other management responsibilities e.g. finding replacement staff, reallocating work.
- Effect on other team members – added stress, morale, work not completed or missed deadlines.
- Lapse in quality due to overworked team members or poorly trained staff being substituted into an unfamiliar role.
- Impact on customers – upset customers due to missed timelines or issues with quality.
Health and wellness programmes can contribute to increased productivity by supporting your employees’ ability to achieve and reducing the number of sick days taken. A healthier workforce also results in stronger ‘championing’ of the company to others.
The risk of losing your best people
There is a shortage of skilled workers in New Zealand. Of New Zealanders departing long-term to other countries, 50 per cent were highly skilled, 23 per cent skilled and 26 per cent semi-skilled or elementary. 9
Generation Y (people born after the mid 1970s) employees are primarily motivated by career development and would sacrifice loyalty to a current employer to achieve it.
To retain Generation Y, improved annual leave and subsidised health benefits are highly rated. 10
Research tells us that 65% of employees are more likely to remain with their employer if they have subsidised health insurance.4
The risk of injuries
No business wants to see any of its workers get injured on the job yet, despite health and safety regulations which encourage safe work practices, workplace accidents do occur frequently.
In New Zealand in 2007, there were 231,300 claims to ACC for work-related injuries and 67 work-related fatalities. The manufacturing, construction, agriculture, forestry and fishing industries accounted for 36 percent of all claims. Workers aged 65 years and over had a higher rate of claims than any other age group. 11
Southern Cross offer a specialist injury management service for employers who are accredited under the ACC Partnership Programme. By partnering with employers we can help reduce workplace injury risk and provide best practice case management and rehabilitation to achieve earlier return-to-work outcomes.
The risk of a flu outbreak
The flu affects between 10-20% of the population each year.12
The flu can have a major financial impact on businesses when workers become ill. With a well-timed flu vaccination programme, you can minimise the potential for disruption.
Over the 2008 season, Southern Cross helped to protect more than 27,000 employees from influenza with our workplace influenza vaccination programme. To find out more about our flu vaccination programme, please contact your Southern Cross Account Manager or call 0800 323 555.
Sources:
1. New Zealand Health Survey, 2006/07, Ministry of Health
2. Stress and mental health in the workplace report, Mind, May 2005
3. Australia. Sick at Work, Medibank Private, 2007
4. TNS Research, 2004
5. CBI/AXA turnover survey 2007
6. UK. Health & Safety Executive Backs. 2005 initiative: Final Report 2006
7. Business in the Community, Wealth from Health, October 2007
8. http://www.3four50.com/
9. NZ Herald Saturday Sep 13, 2008
10. 2008 Survey of Employee Satisfaction and Motivation in New Zealand, Seek Limited, 2008.
11. Statistics New Zealand. Injury Statistics – Work-related Claims: 2007, published 29 October 2008
12. Ministry of Health, http://www.moh.govt.nz/moh.nsf/indexmh/influenza-influenza
Minimising risks
By proactively managing the health and wellbeing of your employees, you can do your business a world of good. Risks that every organisation faces can be minimised with a carefully planned health and wellness solution.
Increasingly, health and productivity are gaining attention as relevant business issues. At a time when businesses are realising the importance of investing in human capital there has also been a shift in mindsets from health care as a cost that needs to be managed to health and productivity as a critical business investment.
What is wellness?
We believe the word ‘wellness’ describes being in a state of optimal wellbeing. It means feeling good most of the time - at work and at home - and having the ability to cope with life’s pressures in a positive manner.
The risk of reduced productivity
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: NZIER Research July 2008
New Zealand's medium-to-longer-run growth prospects and general standard of living critically depend upon its labour productivity performance. Relative to most OECD countries, the level of labour productivity in New Zealand is low and, when measured as GDP per worker, the historic growth performance has also been relatively poor. The apparently poor performance is a key concern for policymakers and has attracted much research attention. Source: Reserve Bank of New Zealand Research Bulletin 2007
In 2006/07, two out of three adults (65.7%) had been diagnosed with a health condition that lasted, or was expected to last, six months or more. The most common health condition for adults was medicated high blood pressure (13.6%), followed by asthma (11.2%). Other common health conditions were ischemic heart disease, arthritis, neck or back disorders, migraine and eczema. 1
It has been estimated that nearly 10% of the UK’s gross national product (GNP) is lost each year due to job generated stress. 2
Wellness is a win-win
Companies that are among the first to introduce wellness programmes are likely to benefit to a larger degree from potential productivity gains than those businesses that wait.
Importantly, investing in employee health can create a win-win situation for employers and employees alike. Employees can enjoy better health and improved quality of life while companies realise more productivity from their employees. 3
People with Southern Cross health insurance take an average of 14 days off work due to illness requiring surgery, while uninsured New Zealanders take an average 48 days off work. 4
The risk of increased worker absences
Widespread failure to invest in workplace health and wellbeing can have dramatic consequences for companies. In the UK, 175 million days were lost to sickness absence in 2006, costing the economy ₤13.4 billion.5
One third (33%) of all workplace absence is caused by illnesses resulting from poor posture, improper sitting habits, and a lack of knowledge of sitting correctly. 6
75% of people who are alcohol dependent are also employees. 7
Three risk factors contribute to four chronic diseases, which cause over 50% of deaths worldwide. Tobacco use, poor diet and lack of physical activity contribute to the four major chronic diseases – heart disease, type 2 diabetes, chronic lung disease and many cancers.8
Have you considered the cost of employee absence to your business?
Direct costs of absence
- Daily rate of pay for replacement staff.
- Other costs incurred, i.e. overtime paid to other staff to cover the absence, engagement of temporary staff etc.
Indirect costs of absence
- Time, paperwork and administration for the line manager and HR/Payroll.
- Inconvenience – the amount of manager’s time diverted from other management responsibilities e.g. finding replacement staff, reallocating work.
- Effect on other team members – added stress, morale, work not completed or missed deadlines.
- Lapse in quality due to overworked team members or poorly trained staff being substituted into an unfamiliar role.
- Impact on customers – upset customers due to missed timelines or issues with quality.
Health and wellness programmes can contribute to increased productivity by supporting your employees’ ability to achieve and reducing the number of sick days taken. A healthier workforce also results in stronger ‘championing’ of the company to others.
The risk of losing your best people
There is a shortage of skilled workers in New Zealand. Of New Zealanders departing long-term to other countries, 50 per cent were highly skilled, 23 per cent skilled and 26 per cent semi-skilled or elementary. 9
Generation Y (people born after the mid 1970s) employees are primarily motivated by career development and would sacrifice loyalty to a current employer to achieve it.
To retain Generation Y, improved annual leave and subsidised health benefits are highly rated. 10
Research tells us that 65% of employees are more likely to remain with their employer if they have subsidised health insurance.4
The risk of injuries
No business wants to see any of its workers get injured on the job yet, despite health and safety regulations which encourage safe work practices, workplace accidents do occur frequently.
In New Zealand in 2007, there were 231,300 claims to ACC for work-related injuries and 67 work-related fatalities. The manufacturing, construction, agriculture, forestry and fishing industries accounted for 36 percent of all claims. Workers aged 65 years and over had a higher rate of claims than any other age group. 11
Southern Cross offer a specialist injury management service for employers who are accredited under the ACC Partnership Programme. By partnering with employers we can help reduce workplace injury risk and provide best practice case management and rehabilitation to achieve earlier return-to-work outcomes.
The risk of a flu outbreak
The flu affects between 10-20% of the population each year.12
The flu can have a major financial impact on businesses when workers become ill. With a well-timed flu vaccination programme, you can minimise the potential for disruption.
Over the 2008 season, Southern Cross helped to protect more than 27,000 employees from influenza with our workplace influenza vaccination programme. To find out more about our flu vaccination programme, please contact your Southern Cross Account Manager or call 0800 323 555.
Sources:
1. New Zealand Health Survey, 2006/07, Ministry of Health
2. Stress and mental health in the workplace report, Mind, May 2005
3. Australia. Sick at Work, Medibank Private, 2007
4. TNS Research, 2004
5. CBI/AXA turnover survey 2007
6. UK. Health & Safety Executive Backs. 2005 initiative: Final Report 2006
7. Business in the Community, Wealth from Health, October 2007
8. http://www.3four50.com/
9. NZ Herald Saturday Sep 13, 2008
10. 2008 Survey of Employee Satisfaction and Motivation in New Zealand, Seek Limited, 2008.
11. Statistics New Zealand. Injury Statistics – Work-related Claims: 2007, published 29 October 2008
12. Ministry of Health, http://www.moh.govt.nz/moh.nsf/indexmh/influenza-influenza