Economic Climate No Barrier To Growth In Workplace Health

News release
24 March 2011

Tough Economic Climate No Barrier To Growth In Workplace Health

The high costs of ill health are driving a growing investment by New Zealand workplaces in employee health.

A new survey of 402 upper North Island employers found that nearly 50% of employers had a formal health and wellness programme in place. Surprisingly, more than half of those had started it in the last three years – a time when adverse economic conditions saw belt tightening in many business areas.

The survey, conducted by not-for-profit health insurer Southern Cross Health Society and the Employers and Manufacturers Association Northern, found that 93% of all businesses surveyed offered some form of health intervention in the workplace.

Southern Cross Health Society chief executive Peter Tynan said employers realise that during recessionary times it was even more important to ensure employees remained healthy, productive and loyal.

“Reduced sick leave is just the tip of the iceberg in terms of cost savings from these types of programmes. Last year a report by Treasury estimated the effect of workers being on the job, but due to ill health, not fully productive was potentially costing the country up to $8 billion a year in lost productivity.”

Reducing absenteeism was seen by 60% of employers as a key reason to have these health initiatives. And the programmes appear to be highly successful. A third of those with a formal health and wellness programme in place reported reduced staff absence due to illness in the last year, while nearly half reported a reduction in time off work due to injury.

While recognising the business benefits of health interventions, the survey showed that New Zealand employers were equally motivated by more altruistic reasons. 62% of employers cited ‘to encourage work-life balance’ as an important reason for having a health and wellness programme while 50% cited ‘social responsibility’.

One in five employers had offered their staff information or support on responsible alcohol use. A third had offered help to quit smoking while one in four had offered weight management or nutrition information or support.

“Employers understand that physical or mental health problems can’t just be parked at the door when we walk into work,” said Tynan. “The routine nature of work, the hours spent there and the peer support available make the workplace an excellent environment to make health and lifestyle improvements.”

The survey showed that more than half of employers with a health and wellness programme also provided time off for their employees to participate in health-related activities.

Health and wellness-related activities ranged from flu vaccinations, workstation assessments and hearing checks to fresh fruit provision, skin checks and on-site massage.

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