Theories and hypotheses abound, but what does the real data say about the links between health and well-being and employee engagement? As a special research component of the 2009 Best Employers in Canada study, Hewitt Associates collected data from almost 200,000 Canadian employees to examine exactly this issue. Hewitt's national lead, organizational health, Rochelle Morandini, shares the results of the research. If you'd like to ask a question about employee health and well-being, or any other pressing human resources challenges you might be facing, email us, and we'll share responses to selected questions on a regular basis.

Question: Are engaged employees healthier?

Answer: Our research classified organizations as having high, moderate and low engagement, based on employee feedback from the Best Employers in Canada study. We then looked at various indicators of employee health and well-being by engagement level and found the following results:

• The average number of days lost due to disability and family leave was half at companies with high engagement versus those with low engagement
• With respect to annual mean days off specifically due to physical, emotional or mental fatigue, absenteeism of employees with low engagement was twice that of highly-engaged employees
• The average number of new long-term disability claims per 1,000 employees was 2.5 times higher at low-engagement employers than at high-engagement employers
• Workers' Compensation premiums at high-engagement companies averaged $654, but they were $900 at organizations with low engagement—despite the fact that Human Resources at the low engagement employers reported the lowest risk exposure to health and safety risks for their employee population
• High-engagement organizations had fewer employees who reported high job-related stress. Stress was consistently highest for middle managers and team leaders/supervisors
• High engagement organizations have fewer employees who report high work overload
• High engagement is also linked to better personal health, particularly where employees have positive manager support
• Even at high-engagement organizations, most employees do not believe they are saving enough for their retirement, affecting their financial well-being.

These findings linking employee engagement and health and well-being establish that engaged employees enjoy lower job-related stress and absenteeism, along with better overall health, resulting in lower disability and workers' compensation costs for their employers and a more productive, motivated and happier workforce. Clearly, a focus on improving employee engagement results in tangible financial benefits for employers.

Question: Can implementing wellness initiatives result in higher engagement?

Answer: Perhaps—it really depends on the initiatives and how they are implemented. The relationship between engagement and employee health and well-being is definitely an interrelated one. Hewitt's research shows that organizations with high employee engagement provide greater “health” promotion and focus through practices, supporting behaviours and, at many employers, through programs.

Certainly employee health and well-being programs can support a healthy culture by enhancing and leveraging engagement; but, if removed or done poorly, they can be a significant drag on employee engagement. What is especially important is to take care of front line and middle management, as they may be the “canaries in the coal mine” for other employees' health and well-being.

Question: How can employers get the most out of their investment in wellness initiatives?

Answer: To maximize the ROI of employee health and well-being programs:

• Do "the basics" well with respect to your programs—ensure they provide a consistent message and are designed, implemented and administered so they are aligned to this message. They need to be easy to access and use, applicable and welcomed by your employee population, provide a positive employee experience during employee recovery and return to work following an injury or illness, and are communicated successfully
• Increase engagement to:
  
  
  • Reduce the need for disability (tertiary prevention) programs and free up resources for primary and secondary prevention
  • Leverage the investment made in programs and initiatives
• Target programs to your employee populations' preferences in order to increase participation and results
• Communicate programs effectively to encourage involvement and increase visibility.

We invite you to listen to our Webcast titled "Health and Well-Being and Employee Engagement: What are the True Links?" featuring our expert, Rochelle Morandini, Hewitt Canada's national leader of organizational health, along with Ted Emond, a senior Hewitt consultant who is very actively involved in the Best Employers in Canada study.

Click here to launch or download the replay of the Webcast.

About Our Expert

Rochelle Morandini has led the way in Canada in conducting disability management needs assessments (advanced audits) and has almost 20 years of consulting experience in the organizational health field. Her current focus is on increasing both personal and organizational health. Her strengths lie in the areas of strategic business and process development that promote health and productivity, strengthen workplace relationships and enhance performance. Rochelle has worked with a large variety of companies and industries within both the public and private sector including large, medium and small employers, as well as those with union and multi-union employee groups.

Rochelle received a Bachelor of Commerce from the University of British Columbia with a major in Organizational Behaviour/Industrial Relations. She completed a Masters of Business Administration from Pepperdine University in Los Angeles, California. Rochelle is also a Certified Human Resources Professional.