The Well-Being Journal

Why Companies are Losing $21.8 Billion Today

James Kanka

By Jim Clifton, Chairman and CEO of Gallup, and Ben Leedle, CEO of Healthways

Ten cities in America stand out when it comes to high well-being – with Boulder, Colo.; Barnstable Town, Mass.; and San Luis Obispo-Paso Robles, Calif.; as examples of cities in the top 10. Residents in these places – compared with the rest of the country – are better connected to their community, have better financial stability and physical health, and have a higher sense of purpose.

These high well-being cities tend to exhibit many shared characteristics, including lower chronic disease rates, lower incidence of obesity, more frequent exercise, less smoking, and a more positive outlook on their community. These commonalities demonstrate a consistent, mutual foundation upon which the top well-being cities attain and maintain their status as standard bearers of well-being in America.

Now, imagine how different the nation would be if the well-being of the average American worker was just as good as that of the people in the top 10 cities – an attainable and measurable goal that can be achieved with the appropriate focus by business owners and their leadership.

If every one of America’s biggest companies – those with 10,000 employees or more – got serious about the well-being of their employees and matched the well-being of our nation’s top 10 cities in just two areas (obesity and smoking), we would collectively net $21.8 billion in reduced healthcare costs and improved productivity.

That figure gets even bigger by accounting for other health conditions and all the aspects of well-being that affect an employee’s life – like strong social relationships, engagement at work, and a sense of financial security.

And every uptick in well-being would pay off for those companies in not just cost savings and improved worker productivity, but also in increased loyalty, safety, and a better customer experience. Those companies could invest their capital in growth, not healthcare costs. Their employees would put their energy into their jobs, not their illnesses, sources of stress, and struggles.

Then there are the millions of other employees working in the millions of smaller businesses throughout the country – many of whom could benefit from improved well-being, meaning the total savings for all U.S. businesses would likely be hundreds of billions of dollars every year. This would put a sizable dent in our annual $2.7 trillion in healthcare spending.

So, what can business leaders do to capture this value? First, understand that the key elements impacting an employee’s day-to-day life go well beyond physical health and include factors like financial stress, social relationships, work environment, and community involvement. The most effective strategies drive awareness around all facets of well-being; help employees develop specific goals to improve their individual well-being; provide them access to resources; and foster ongoing engagement, motivation, and encouragement. Companies that have engaged their employees this way have seen not only lower healthcare costs and improved productivity, but also lower rates of absenteeism and turnover.

Here’s the thing: Chief executives and business leaders should not wait for the government to solve our healthcare spending problem. These leaders have to step up, because no one else is better equipped. Business leadership is all about solving problems, setting strategies, demanding accountability, and building on success. To attack this problem, business leaders must understand why the residents in the top 10 cities have higher well-being, and then take action to help their employees improve their well-being.

Leaders can, in fact, solve this problem one employee, one department, and one company at a time. They just have to choose to tackle it and then put the right systems in place.

Sure, there’s an altruistic component to helping your employees improve their well-being – it will be good for them, and it will be good for our country. Importantly, however, improving well-being will also make your company perform better – and ultimately, it will be good for business.

Republished with permission from Jim Clifton's LinkedIn

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Topics: Workplace Well-Being Well-Being Index

Is Improving Your Financial Well-Being on Your List of New Year's Resolutions?

Sandy Cummings

blog SAD JAN 2012Sometimes you read something and think, "Yep, that about says it." Check out this article from TheStreet -- not a place where you'll usually catch me hanging out for a good read, but the title, "2014: The Year of Change," drew me in. Here's a little sample to pique your interest:

I don't know what it is, but something about the new year makes us want to reflect on our own imperfections. It makes us think. It forces us face to face with our regrets. It also makes us consider what we can do to make this year better than the last.

"We as humans love fresh beginnings and we get a new chance every January 1st," says Shannon Ryan, a certified financial planner who has worked with individuals and businesses for the last 20 years.

And there's nothing wrong with new year's resolutions, right? In theory, choosing to make one positive change each year could only be a good thing. Think about it. This year could be the year you start exercising. Next year you could focus on nutrition. The year after that could be the year when you finally stop overspending, once and for all.

Then, boom, you've evolved from an exercise-hating spendthrift to a CrossFit enthusiast who saves 90 percent of their income. And you did it all over the span of just a few years, right?

Wrong.

...

In order to move beyond resolutions, you have to make a lifestyle change. And that's exactly why people compare their financial challenges with their relationship with food. The similarities are striking. After all, it's easy to start a new diet on a Monday (don't all diets start on Monday?) and do awesome until about Thursday night when your husband breaks out a giant block of cheese at 10:00 p.m. (story of my life). Then, all of a sudden it's Friday and you're scarfing down nachos at Applebee's while secretly hating yourself. Oh, but you're totally going to restart the whole thing on Monday, right?

The article goes on to share Ryan's tips for getting your financial house in order, which I'm guessing is on the resolutions list for many of us.

Why is it so hard to make lifestyle changes that ultimately improve our overall well-being? Sometimes we just need a little help making the small steps that lead to big change. Healthways is working with the Dave Ramsey organization to make achieving financial well-being a little easier for everyone. It doesn't have to start on January 1 -- you can start any time. Stay tuned -- we'll be sharing more in the coming months.

 

Topics: Healthy Living Financial Well-Being Well-Being Links of the Week In the News Lifestyle Change New Years Resolution