Accounting for employee health: The productivity cost of leading health risks

Health Promotion Journal of Australia : Official Journal of Australian Association of Health Promotion Professionals
Tamara D Street, Sarah J Lacey

Abstract

"Workplace health promotion and protection" broadly refers to an integrated approach to workplace health and safety initiatives. There are substantial benefits to adopting such an approach, including the potential for: improvements to individual employees' health and well-being; increased productivity; and reduced safety risks and expenses. Yet many employers remain reluctant to shift from traditional safety initiatives and spending. This paper aims to demonstrate the value of investing in an integrated health promotion and protection approach by calculating the productivity costs associated with 11 modifiable health risks and 14 chronic conditions in an Australian mining company. Eight hundred and ninety-seven employees participated in a self-report health survey aimed at investigating employee health behaviours, health conditions and productivity. Overall, modifiable health risks and chronic health conditions were calculated to contribute to an estimated $22.15 million (AUD) and $7.95 million (AUD) in lost productivity per 1000 employees per annum, respectively. Although employee stress was identified as the third highest prevalence health risk across the employee sample (at 42%), it accounted for the highest financial burden...Continue Reading

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