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London’s Business Case for Employee Health and Wellbeing

This overview explores the importance of employee health and wellbeing in London, including the costs of ill-health and the business benefits associated with wellness programs.

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London’s Business Case for Employee Health and Wellbeing

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  1. London’s Business Case for Employee Health and Wellbeing Laura Croft & Gordon Douglass 29th May 2012

  2. Overview • The London Health, Work and Well-being programme • Government commitment to health and work • Defining ‘good work’ • Challenges for economic growth • The Case for Employee Health and Wellbeing • The health situation in London and the UK • The costs of ill-health • The business benefits associated with wellness programmes

  3. Vision for health, work and well-being Creating a society where the positive links between work and health are recognised by all, including health professionals, and where everyone aspires to a healthy and fulfilling working life, and where health conditions and disabilities are not a bar to enjoying the benefits of work. Working for a Healthier Tomorrow, 2008

  4. What do we mean by good work? Good work • Living wage • Having control over work • In-work development • Flexibility • Protection from adverse working conditions • Ill health prevention and stress management strategies • Support for sick and disabled people that facilitates a return to work • Robust, appropriate human resources and occupational health policies and procedures • Good management practices

  5. Supporting sustainable growth • Current challenges for growth… • Rise in chronic health conditions, particularly mental health • Global competition (need for increased productivity) • Health issues relating to lifestyle • Rising number of people defined as economically inactive

  6. The Case for Employee Health and Wellbeing - Context • In 2011 131 million working days were lost to sickness in the UK, down 26 per cent on 1993 despite employment increasing by around 4 million. • Common causes of absence include minor illnesses which cost 27.5 million working days, musculoskeletal problems that cost 34.4 million working days, and stress, depression and anxiety which cost 13.1million working days. • The percentage of hours lost in London to sickness in 2011 was 1.3 per cent the lowest in the country. • However, it has been estimated that sickness absence costs an average London firm of 250 employees £250,000 a year.

  7. The situation in London • Low employment of people with health problems – 43 per cent of male Londoners with a health problem are workless compared with 36 per cent nationally (the figures are 54 per cent versus 49 per cent for women).  • Employment of people with disabilities – London has the lowest rate of people with disabilities in employment in England, 45 per cent compared to 50 per cent nationally. • Failure to return to work following ill-health – London has the highest proportion of individuals on incapacity benefit for greater than six months in England and the greatest proportion of individuals falling out of work within six months following a return. • Prevalence of preventable illness – The majority of Londoners on incapacity benefit have preventable and / or treatable conditions.

  8. Sickness Absence in London and the UK (4 quarter rolling average) Source: ONS Labour Force Survey

  9. Absent employees by occupation (UK Jan-Dec 2010) Source: ONS Labour Force Survey

  10. There is a link between income deprivation and ill health Income Deprivation Domain in London in 2010 Source: Greater London Authority

  11. Health Deprivation and Disability Domain in London in 2010 Source: Greater London Authority

  12. Cost of working age ill-health in 2007 (£ billions)

  13. Business benefits associated with wellness programmes

  14. The Top 5 employee well-being benefits by employers (% of employers surveyed in the UK that offered the benefit to all employees) Source: CIPD

  15. Benefit/cost of selected wellness programmes that took place in the UK

  16. Thank youWeb link:Gordon Douglassgordon.douglass@london.gov.ukLaura Croftlaura.croft@dh.gsi.gov.uk

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