In the first article in this series, we looked at the basics of Health & Productivity Management, starting with a definition of the concept:
[Health and Productivity Management] is “the integrated management of health and injury risks, chronic illness, and disability to reduce employees’ total health-related costs, including direct medical expenditures, unnecessary absence from work, and lost performance at work (i.e., presenteeism).”
As we discussed, this concept is comprehensive in approach and pro-active in nature, significantly differentiating it from other healthcare/productivity endeavors. Now that we’ve laid the groundwork, what makes this type of program so important? Why should companies and other organizations consider implementing an H&PM initiative? With this article, we’ll look at the answer to these and other questions.
Meeting the economy’s challenges
The economic crisis currently facing the United States—and in some fashion, the world—makes an effective Health & Productivity Management program even more essential. This is true not just for certain types of companies, either. It’s true for companies in every industry and of every size, namely because the economy is presenting the same types of obstacles for all companies. Some of those major obstacles and challenges are outlined below.
- The healthcare dilemma—Healthcare costs seem to skyrocket every year, rising even faster than the annual rate of inflation. For some small business owners, the cost of providing healthcare to employees has become a crippling expense. Consequently, it’s in their best interests to help their employees be as healthy as possible in an attempt to keep costs at acceptable levels from year to year.
- The need for more productivity with fewer employees—Companies have been slashing payrolls at quite a fast clip since the beginning of the year, and more job losses are forecast for the remainder the year. As a result, it’s imperative that companies invest in the health of their employees so that they can reap a sizeable investment in terms of productivity. Specifically, they need to maximize their productivity from each employee on an individual basis. This “production-per-employee” matrix is a strong indicator of a company’s long-term success. In other words, it’s what makes a company “lean and mean.”
- Survival of the fittest—That leads us to the top priority, both for companies individually and the country as a whole. Continued revenue generation and the existence of concrete profit margins are essential for the continued growth and development of the economy. Only those companies that pay the proper amount of attention to health and productivity will be positioned correctly to reap the benefits once the economy rebounds.
Taking the next step
As you can see, keeping employees healthy and productive has never been as important as it is right now. In all likelihood, it’s going to become even more crucial in the future. If properly implemented and monitored, a Health & Productivity Management program can help just about any company reach their goals and objectives, especially as they pertain to greater productivity and a healthier bottom line.
However, now more questions can be posed. How does a company go about implementing such a program? Are there specific steps that can be undertaken to ensure a greater level of success? Does it matter if you’re a big company or a smaller company? In our next issue, we’ll tackle these questions in the final part of our three-part series.
Hiring by Design Contributing Author: Gary Sorrell
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