8 Reasons Why Investing in Employee Health is Good for People and Business

In today’s fast-paced work environment, employee health is no longer just a matter of personal well-being; it’s a critical component of organizational success. Investing in employee health goes beyond offering gym memberships or annual flu shots—it's about creating a holistic approach to wellness that benefits both the individual and the organization. Here are eight compelling reasons why investing in employee health is not only good for people but also for business.

1. Increased Productivity

Healthy employees are more productive employees. When employees feel their best physically and mentally, they are better able to focus, problem-solve, and complete tasks efficiently. A study by the American College of Occupational and Environmental Medicine found that healthier employees are on average 25% more productive than their less healthy counterparts. For more insights into how health influences productivity, check out this comprehensive study from Harvard Business Review.

2. Reduced Absenteeism and Presenteeism

Investing in employee health reduces absenteeism, as healthier employees are less likely to miss work due to illness. Equally important is reducing presenteeism, where employees show up to work but aren't fully functioning due to health issues. The Centers for Disease Control and Prevention (CDC) estimates that presenteeism costs U.S. businesses up to $1,685 per employee annually. By fostering an environment that prioritizes health, companies can mitigate these costs significantly. You can read more about absenteeism and presenteeism in this report from the CDC.

3. Lower Healthcare Costs

Rising healthcare costs are a concern for both employees and employers. Chronic illnesses and poor lifestyle choices are major contributors to these costs. When companies invest in preventive health measures and wellness programs, they can help reduce the incidence of chronic diseases like diabetes, heart disease, and obesity. A study by RAND Corporation found that wellness programs can yield an average return of $3.80 for every $1 spent on healthcare savings. For more data on how wellness programs can reduce healthcare costs, check out this RAND Corporation report.

4. Improved Employee Morale and Job Satisfaction

Employees who feel cared for by their employer tend to be happier and more satisfied with their jobs. Offering wellness programs, mental health support, and other health-focused benefits can make employees feel valued, leading to improved morale and increased loyalty. This effect has been documented by the Society for Human Resource Management (SHRM), which found that health benefits positively impact job satisfaction. For more insights, see SHRM’s research on health benefits and job satisfaction.

5. Enhanced Recruitment and Retention

In a competitive job market, attracting and retaining top talent can be challenging. Companies that prioritize employee health are more appealing to job seekers. A recent survey by Glassdoor found that 57% of workers consider wellness programs and health benefits when evaluating job offers. Investing in health-centric benefits can give companies a recruiting edge and help retain existing employees. Learn more about the link between wellness programs and employee retention on Glassdoor’s blog.

6. Boosted Creativity and Innovation

A healthy workforce is more likely to be a creative and innovative workforce. Physical exercise and mental well-being are both linked to improved cognitive function and problem-solving skills. Employees who have access to wellness programs, mindfulness training, and stress management resources can approach their work with fresh ideas and enhanced mental clarity. For an in-depth look at how health affects creativity, explore this article from the World Economic Forum.

7. Reduced Workplace Stress and Burnout

Workplace stress and burnout are serious issues that impact both employees and organizations. Investing in employee health—particularly mental health—is essential in combating these challenges. Programs focused on mental health awareness, stress management, and resilience training can reduce burnout rates, leading to a healthier, happier workforce. The World Health Organization (WHO) has identified workplace stress as a “global epidemic,” underscoring the importance of mental health support in the workplace. You can read more on the WHO’s stance on workplace stress here.

8. Positive Company Culture and Reputation

A company that actively promotes employee well-being establishes a positive company culture, which, in turn, can enhance its reputation. Businesses with a reputation for caring about their employees attract clients, partners, and stakeholders who are aligned with their values. Moreover, when employees feel supported in their health journey, they become advocates for the organization, spreading positive word-of-mouth. For more on how employee wellness influences company culture, refer to this article by Forbes.

Final Thoughts

Investing in employee health is more than just a nice-to-have perk; it’s a smart business strategy. By prioritizing health, organizations can enjoy a range of benefits, from higher productivity and lower healthcare costs to improved morale and a better reputation. In an era where businesses are continuously seeking ways to differentiate themselves, a commitment to employee health can set a company apart as a forward-thinking, people-first organization.

Whether you’re a business leader, an HR professional, or an employee, advocating for health investments at work is a step toward creating a sustainable, successful, and caring work environment. And as the evidence shows, what’s good for employees is also good for business.