We’re all meant to be improving productivity, but just how exactly? Making health and wellbeing priority is good place to start. It’s the one thing on which political parties, commentators and interest groups from across the spectrum can agree. For New Zealand to thrive, we need to lift our productivity.
It’s one thing to talk, and fret, about problem. It’s quite another to come up with tangible solutions. Lifting productivity is about making the most out of what we’ve got. It’s about finding efficiencies, innovations, upskilling, consolidating and creating the right environment for business to flourish – as acknowledged by the creation of the Government’s Productivity Commission.
Unfortunately business, industry or policy change doesn’t happen overnight. So, what can businesses do to lift productivity starting now?
In the average workplace, you’ve got around 1800 hours of each employee’s time per year. Having your people on the job, fit and well, and fully engaged in their role is good place to start getting more out of your business.
Research shows that health and wellness initiatives can very quickly start paying productivity dividends. 2008 study by Synergy Health showed that implementing influenza vaccinations resulted in saving of $60 per person vaccinated by reducing the level of sickness absence (based on employees on an average $55,000 salary).
In 2011, Southern Cross had research house TNS conduct an independent survey of over 2000 New Zealand employees into the impact of health insurance on employee behaviour. It found that employees with health insurance took on average 2.2 fewer days off work for medical reasons per year than those without health insurance. This was after factoring in variances across industry, age and gender.
When you dig down, the gains from reducing lost work hours are just the beginning. Temporary staff hire, client inconvenience, stress on other employees, project delays and other productivity losses are just few of the other costs that can result from ill health.
Health benefits have also been found to have positive effect on another major productivity drain – recruitment and retention. All things being equal, the TNS study found that those with health insurance were more satisfied in their job, and less likely to leave in the next year.
It’s interesting to note the Productivity Commission’s vision statement is “Productivity growth for maximum wellbeing”. It’s an important acknowledgement that prosperity is not just about dollars and cents.
Enhancing productivity is good for the bottom line. But if we’re getting more from, and asking more of, our people, health benefits are also way that businesses can give something back. M
The big picture
Based in Hamilton, Canary Enterprises manufactures specialised food products for airline caterers, hotels, bakeries, restaurants and supermarkets in New Zealand, Australia, the Pacific Islands and number of Asian and Middle Eastern countries.
In 2011 the company decided to offer its 20 staff choice: pay rise to match the annual inflation rate, or fully subsidised Southern Cross health insurance package that included discounted premiums for family members.
“We offered the insurance because we understand the importance of having healthy workforce – particularly given our ultra-hygienic working environment. We also saw it as part of our responsibility as good employer,” says accountant Nic Wetere.
“For the business, it’s key tool for attracting and retaining good talent.”
Sixteen employees took up the company’s offer of health insurance. Says Wetere, “We were pleased to see them look beyond one-off pay rise to their and their families’ long-term health and wellbeing.”
Peter Tynan is chief executive of Southern Cross Health Society.
