The case for investing in employee health

Ahead of the Business in the Community (BITC) Health and Work summit on 12 May, Personnel Today highlight the business case for investing in employee health, and assess the claim that in a recession it’s never been more important.

My feeling is that the businesses that will come out at the end of the recession strongest will be those that focus on and spend time and effort on the management and wellbeing of employees.

The Summit on the 12 May is being held by BITC’s Business Action on Health (BOAH) campaign, which aims to get 75% of FTSE 100 companies committing to boardroom reporting on employee wellbeing by 2011.

BOAH believe that through this board-level support, investing in employee wellbeing can become part of a business’ strategy, while also becoming a key driver of employee engagement and activity.

Return on investment

In a recession it can be tempting to neglect this investment, but to do this is a false economy according to Louise Aston, BOAH Director:  “The business case for finance directors on making the return on investment is powerful. For every £1 you invest, you get £3 back. It's a false economy to cut back on investment in employee health and wellbeing initiatives."

Alex Gourlay, Chairman of BOAH and Chief Executive of Alliance Boots Health & Beauty Division, feels that it is the businesses acting responsibly now who will come out of the recession more strongly: "There are a lot of people who would say that it's harder to invest in this area when money is tight, but the time to be really socially responsible is actually when things are tough outside.”

"My feeling is that the businesses that will come out at the end of the recession strongest will be those that focus on and spend time and effort on the management and wellbeing of employees."

However, Personnel Today pointed to the fact that not everyone is convinced that companies that promote responsible business practice can offer credible leadership during an economic crisis triggered by irresponsible investment in the financial sector.

Environmental campaigner Jonathan Porritt pointed out in his blog that "the seductive pull of big money will always trump the platitudes of corporate responsibility".
 
This view argues that the benefits of initiatives such as employee wellbeing can be wiped out by irresponsible business practice in other areas, and raises doubts about whether organisations will be prepared to invest in wellbeing initiatives while cash is tight and jobs are being shed.

Making well-being a core objective

Louise Aston believes that the answer to this is to make well-being part of the core business objectives, which is evidenced by the strategy of BAOH that targets board-level buy-in.

She says that, "Responsible business practices must be built into the decision-making processes, embedded into the mentality and culture and DNA of business so deeply that, in time, corporate social responsibility is no longer seen as a separate function of the business, or narrowly focused on social issues".

She also says that the definition of wellbeing has to shift from negative criteria, such as absence costs, towards positive ones, such as the benefits to productivity and staff engagement of a more resilient workforce.
 
This approach has already been adopted with some success by Business in the Community premier members the Royal Mail Group, Alliance Boots and Unilever.

BITC Health and Work Summit

At the BITC Health and Work Summit on 12 May, delegates will learn from leading experts and employers on how to maximise the contribution of employees through investing in employee wellbeing through a suite of tools and the sharing of best practice.

Visit the events page for more details and to find how to book your place »