How to save your business $100K

If you want a healthy business and bottom line, keep your staff healthy.

Yes, encouraging staff to have a healthy lunch, get up from their desk or ride a bike to work, could result in a very healthy $100,000 business saving – not to mention a happier, healthier and more productive workforce.

According to new research commissioned by the NSW Government initiative Get Healthy at Work, small and medium size enterprises (SMEs) with a healthy workforce are $100,000 better off over a five year period than businesses with unhealthy staff.

In fact, the positive effects of a healthy workplace both on employee sentiment and business costs far outweigh the investment a business might make to create a healthy workplace. Effective workplace health programs have been shown to deliver a broad range of business benefits including increased productivity, staff retention, improved morale and greater employee engagement. And the cash return is between $3 and $6 for every $1 invested.

The $100,000 costs of an unhealthy and stressed workplace

So where can the savings be made? Well, let’s have a look at where the $100,000 costs are going over a five year period: SMEs make up around 40% of NSW’s business community. Based on cost estimates provided by businesses, the survey revealed that businesses classified as experiencing ‘high rates of absenteeism’, that is, unplanned sick leave, cost around $50,000 more to run compared to businesses who experience ‘low rates of absenteeism’. That’s a pretty penny that could mean the difference between a business’ demise and survival.

Employees who are stressed out because of the higher rates of sick leave can also notch up costs by $16,000. And while it may appear that employees chained to their desk are more efficient, the opposite is true. The research revealed that businesses that have inactive staff admitted employees were 35% less likely to take desk breaks and they’re three times more likely to experience high rates of absenteeism, resulting in additional costs of $34,000.

Shark Tank panellist, RedBalloon founder and successful entrepreneur, Naomi Simson, understands the pressures that SME owners face – and the benefits that a healthy workforce can provide.

“I know what it’s like to be a small business owner,” says Simson. “It’s typical to work very long hours and juggle a variety of roles and responsibilities. As a result, activities that don’t drive a profit can come second to driving the business but the findings, from the research by Get Healthy at Work, demonstrate the financial imperative to implement healthy workplaces. Simply put if you are not looking after you and your team’s wellbeing how can you best serve the customer?”

“I’m now a great believer in the importance of a healthy workforce and showing your team that you value them as people. In 2006, at RedBalloon, I reached an employee turnover rate of 64%, it was a confronting time for me as a leader and business owner. I learnt that a happy, healthy workplace culture is vital to business success and needs to be lead from the top.”

Healthy savings for healthy businesses

So what is a ‘healthy business’? According to the World Health Organisation (WHO), a healthy workplace promotes the health, safe and well-being of all workers by considering the following:

• Health and safety concerns in the physical work environment;
• Health, safety and wellbeing concerns in the psychosocial work environment, including organisation of work and workplace culture;
• Personal health resources in the workplace; and
• Ways of participating in the community to improve the health of workers, their families and other members of the community.

How healthy employees are beneficial to the business

The WHO states that “a wealth of data demonstrates that in the long term, companies that promote and protect workers’ health are among the most successful and competitive, and also enjoy better rates of employee retention.”

And the relationship between active participation in health and wellbeing programs provided by the business and the health of staff are reflected in the numbers. According to the Get Healthy at Work survey, 62% of businesses classified as ‘healthy businesses’ indicated that most of their staff actively take part in health and wellbeing programs provided by the business, compared to just 28% of businesses classified as ‘unhealthy’.

The cost of prevention versus the cost resulting from accidents, stress, absenteeism, high turnover, training and medical costs, results in a more positive cash flow, healthier workforce and an increase in long-term productivity.

Health and wellbeing programs can be any number of initiatives, including:

• Employers encouraging staff to be physically active for 30 mins per day. This could be by promoting gym memberships, riding or walking to work, getting active at lunchtime, or even having ‘walking meetings’.
• Providing healthy food at catered events that assist employees in reaching recommended daily intake of fruit and vegetables. A catering policy that swaps the ‘brownies and pastries’ for healthier options can not only reduce unhealthy calorie intake, but also the expenses associated with indulgent foods.
• Providing shower and change room facilities that support staff to use active modes of transport for their daily commute, such as walking, cycling or catching public transport.
• Supporting programs or incentives to staff members wanting to quit smoking.
• Creating alcohol free work events – or encouraging moderate consumption.
• Providing drinking water. Swap the fridge stocked with sugary drinks for a water cooler.
• Having a workplace health and wellbeing policy that ensures workplace health is embedded in company culture.
• Monitoring staff workloads and stress: A whopping 64% of businesses that experience high levels of absenteeism indicate that staff are stressed and unable to cope with the strains of their jobs. Implementing formal processes and programs to address health risk factors facing staff, could lead to a reduction in absenteeism levels and in turn, workplace stress.

Get Healthy at Work is a free NSW Government initiative for businesses of all sizes that provides all the tools and support to create an effective workplace health program and offer confidential health checks for workers. To learn more or to register visit Get Healthy at Work or call 13 10 50. Calculate how much your businesses can save with an effective workplace health program at Workplace Health Savings Calculator.