Prevention has been the big buzz word over the past few years. In fact, I think many start to yawn when they hear the word and underestimate its importance.
The quest for preventative programs-especially in the workplace- is on the rise. Here are some research results taken directly from the always-interesting Centers for Disease Control and Prevention site, the “Investing in Prevention Improves Productivity and Reduces Employer Costs” study.
What Does Prevention Mean for Business?
Prevention Means Lower Healthcare Costs for Employers
- A 1% reduction in health risks such as weight, blood pressure, glucose, and cholesterol risk factors would save $83 to $103 annually in medical costs per person, much of which could accrue to employers in reduced premiums.*
- Healthcare costs for smokers, people who are obese, and those who have diabetes are $2,000, $1,400, and $6,600 per year higher for each person with these conditions, respectively. Healthcare costs saved from preventing these diseases reduce health insurance premiums.*
- Medical costs are reduced by approximately $3.27 for every dollar spent on workplace wellness programs, according to a recent study.*
Prevention Means Greater Worker Productivity
- Healthier workers provide continuity for businesses, with fewer disruptions due to absence, greater day-to-day productivity, and less need to replace institutional memory and train new employees.
- Research from the Milken Institute suggests that a modest reduction in avoidable risk factors could lead to a gain of more than $1 trillion annually in labor supply and efficiency by 2023.*
Prevention Means Stronger Global Competitiveness
- Untreated or preventable illnesses impose significant monetary and productivity costs on U.S. companies.
- Increases in productivity due to better health have a positive impact on GDP growth. Findings from the U.S., Canada and Indonesia have shown that as the price and availability of health services improve, labor force participation and hourly earnings increase.*
Prevention Means Healthier Individuals and Communities that can Benefit Local Business
- Businesses want to locate in communities with a positive health profile because they can count on a healthier, more stable and more productive workforce.
- Healthier communities attract new residents, tourism, and other businesses, broadening the potential market for local industry.
When we invest in prevention, the benefits are broadly shared.