Preliminary Findings
Increasingly, U.S. business leaders are viewing workforce health as a business issue. A 2012 survey of senior financial officers found more than two‐thirds of them view health as a financial priority in their organizations (IBI, 2012). That same year, Buck Consultants released a report listing improved worker productivity as a primary reason to invest in workforce wellness programs (Buck, 2012) and an Aon Hewitt survey of 1,800 companies indicated that 70% of respondents invest in health and wellness as part of their business strategy (Aon Hewitt, 2012). The following year, a 2013 survey of employers found modifiable lifestyle issues—such as employee stress, obesity, and lack of physical activity— to be among their top concerns due to their demonstrated association with elevated absence costs (NBGH/Towers Watson, 2013). Emerging research demonstrates the influence of workforce health on business outcomes. A report by the National Business Group on Health and Towers Watson finds employers that invest in workforce health report better business performance (NBGH/Towers Watson, 2013). Right Management, a talent and career management company serving Fortune 500 and global employers found that organizational performance increased 2.5 times more in organizations with well-‐managed health and wellness programs and that performance decreased more than 3.5 times when health and wellness were not managed well. A Willis North America survey of over 1500 companies reported that some of the top benefits associated with health and wellness programs were better employee morale and employee retention (Willis NA, 2011). And yet, when asked about the chief drivers of business performance, health is not often a top‐of‐mind response for C-suite leaders (Terry, 2014).
To investigate this apparent disconnect, the Health Enhancement Research Organization (HERO) conducted a survey of business leaders from a wide variety of different industries. The primary objective of the survey was to better understand how business leaders think about the concepts of productivity and performance and also their beliefs about the connection between health, productivity, and performance. The survey did not offer respondents definitions of these terms because HERO wanted to understand how business leaders think about these concepts based on their own understanding of the terms. Further, HERO wanted to explore whether or not these terms mean the same thing to most business leaders or if they thought about them as two distinct concepts. As expected, in open-‐ended comments at the end of the survey some of the respondents suggested that clear definitions of the terms would have been helpful.
The results of the HERO survey confirm that business leaders view the terms productivity and performance as related concepts but not the same thing and that workforce productivity and performance are both considered important for meeting business objectives. Business leaders’ views about the relationship between health, productivity, and performance are complex. While workforce health is not considered to be one of the top three drivers of productivity or performance by the majority of business leaders, they recognize health as a significant contributor. When asked about the drivers of productivity and performance, workforce health was listed as a top contributor by 23% and 21% of respondents, respectively. Most respondents indicate having the right people in the right jobs and high employee engagement with their work are the most significant drivers of productivity and performance. When asked how health contributes to organizational priorities, about 60% of business leaders believe productivity and performance are impacted by employee health and 41% say health impacts employee engagement or morale. Moreover, business leaders consider the value of workforce health as an investment in human capital (41%) to a greater extent than a mechanism for health care cost containment (30%). An additional 16% of business leaders say the organization invests in health
primarily as a core business strategy. Regardless of what business leaders believe drive productivity and performance, 77% say their most senior executives are committed to improving and maintaining employee health.
In conclusion, while business leaders’ beliefs about the relationship between these concepts are complex, most business leaders agree that health is a contributor to both productivity and performance and are committed to improving the health of their people. These findings emphasize the need to better understand these relationships and to broaden the value proposition for employee health more broadly than a mechanism to reduce health care costs. A more detailed look at the preliminary findings follows.
Business leaders view health as an investment in human capital
When asked how investments in improving and maintaining employee health are viewed, 16% of business leaders said it was a core business strategy. While this is not a large proportion of business leaders, it is an indication that workforce health is taking a more central role in decision making than it might have in the past. An additional 41% indicate health is primarily viewed as an investment in human capital, while 30% view it as a health care cost containment strategy. C-suite leaders (52%) are more likely to view health as an investment than individuals in less senior positions in the company.
Jack Groppel is the Vice President of Applied Science & Performance Training, Wellness & Prevention, Inc., a Johnson & Johnson company, and Co-Founder of the Human Performance Institute®. He is an internationally recognized authority and pioneer in the science of human performance, and an expert in fitness and nutrition.