Good Health equals Good Business
Successful investors require intricate knowledge of the underlying performance of a company. Workplace health and wellbeing is an important indicator in determining productivity and overall business performance. The relationship between good practices in workplace health and financial performance has been documented in numerous studies: https://www.globalhealthyworkplace.org/case-studies/
A growing number of investors and financial analysts understand the importance of workplace health and wellbeing. The environmental, social and governance (ESG) criteria highlight the relationship between the health and safety of employees and business performance. Susana Peñarrubia, Senior Portfolio Manager at DWS, sees “health and wellbeing as one of the most important social indicators for measuring company business performance”.
A large body of evidence has demonstrated the positive outcomes of health and wellbeing programs. However, many investors are unsure what constitutes a good program and what type of indicators to look for. The Global Centre for Healthy Workplaces (GCHW) has collected data on good practice programming for over six years via its Global Awards and Certification program and developed a Healthy Workplace Index for investment analysis.
Companies with successful programs report on their health and wellbeing strategy and outcomes to all stakeholders. For example, Global Awards winner Unilever provides information on their Well-Being framework and health protection as well as on the business impact of their programs. Its aggregated results illustrate that for every €1 Unilever spends on Lamplighter programs produces a return of €2.44. The Global Healthy Workplace Award for Multinational Enterprises winner 2017, Chevron, “recognizes that healthy employees are better able to do their jobs and that health and well-being impact safe operations.”
The Global Centre for Healthy Workplaces believes that for an accurate assessment to be made on the underlying factors which drive business performance, company data needs to go beyond merely publishing statistics on occupational injuries and fatalities. Comprehensive assessment requires (but is not limited to):
- a systematic health and wellbeing process which includes a needs assessment and program evaluation
- the addressing of risks in the physical and psychosocial work environment
- measurable employee outcomes in areas such as health risks, engagement, turnover, sickness and presenteeism
Indicators or metrics should be standardised as best possible and comparable within sectors.
Investors need to know if their companies have a credible healthy workplace program – does yours?
The initial Discussion Paper on “Investors’ Perceptions of Workplace Wellbeing” is available at https://www.globalhealthyworkplace.org/documents/Healthy-Investments.pdf.
For updates on the Global Centre for Healthy Workplaces Healthy Investments program visit www.globalhealthyworkplace.org. To participate in the Healthy Investments program, contact: firstname.lastname@example.org