· Wellness in the workplace has undergone significant growth in the past three years (up by 274%). It is estimated that by the end of this decade, we could see wellness strategies within over 75% of organisations.
· Nearly 40% of employers which offer wellness strategies do so to increase employee engagement.
· The average annual spend on wellness at employers with a defined wellness strategy is £26-£50 per employee.
Source: Punter Southall Health and Protection and Reba’s Employee Wellness survey 2016, March 2016
A revolution is underway. For a long time now, the employee benefits market has been focussed on providing benefits that support employees in the event of serious ill-health. Popular benefits such as life assurance or income protection form part of most standard remuneration packages and offer employees and their families’ valuable peace of mind. But the reality is that employers hope staff will never have reason to use them at all.
Lately, however, a shift in the benefits market seems to be taking place. With growing numbers of employers starting to embrace wellness initiatives among their workforces, the focus is moving to prevention rather than paying for treatment.
On a daily basis, we are inundated with the latest reports that the National Health System is at breaking point, child obesity levels are at a record high, preventable diseases such as diabetes are on the up and that the general health of the nation is in a poor state. Something has to be done and on a huge scale to address our ailing national health. And it is this that is fuelling the growing wellness movement.
The workplace offers a unique environment to educate and support employees in the pursuit of adopting healthier and more active lifestyles. We are seeing lots of simple and cost-effective ways that employers are introducing wellbeing initiatives within their organisations ranging from wearable fitness devices and fitness challenges designed to increase employee activity levels to healthy-eating classes and providing employee assistance programmes (EAPs).
Insurance providers are waking up to this too, bringing new products to market which feature wellbeing elements, such as wearable fitness devices and health screenings for staff, all incorporated within the annual premium. In doing so, they can help to improve wellness in the workplace and, in the long term, reduce the number of insurance claims.
For example, if a health screening programme identifies an employee with a condition such as dangerously high blood pressure, they are able to get the treatment they need early on and avert what could potentially become an income protection or even life assurance claim without this type of early intervention.
The benefits of a wellness strategy are well documented and they provide employers with strategic advantages. By investing money in a wellness programme, organisations expect to see a subsequent reduction in costs, in the form of better-performing workers, lower rates of absenteeism, higher staff retention levels, and reduced insurance premiums and healthcare costs.
Employees are an employer’s most valuable asset. By providing them with wellness initiatives, employers can help to improve their individual wellbeing, both mental and physical, and their overall job satisfaction. Happier and engaged staff are more productive and less likely to voluntarily leave an organisation. The welfare of employees has a direct impact on the success of a business.
Interestingly, I was asked the other day if wellness at work is just a fad. Personally, I think it is firmly here to stay. Why? Well, where once wellness programmes were viewed as a nice to have they are increasingly recognised as a strategic imperative for UK employers. Organisations are starting to embrace wellbeing strategies as a way to maintain a healthy workforce and enhance their existing employee benefits. Modern, progressive employers know it makes sense. Put simply, healthy employees cost less.
John Dean is managing director at Punter Southall Health and Protection
