Does investing in wellness boost business performance?


June 16, 2021

Newly published peer-reviewed research in the Journal of Occupational and Environmental Medicine found that companies with a culture of health outperform the stock market (as expressed by the S&P 500) by an average of 2 percent per year.  

Co-authors Raymond Fabius, MD, and Sharon Phares, Ph.D. MPH, SVP of Research at PSG, analyzed the results of a portfolio of publicly-traded companies over ten years to test the theory that a commitment to employee health, safety, and well-being can lead to more robust returns. 

“A focus on employee health and wellness resulted in a high return on investment for the portfolio companies and can positively impact business performance,” said Dr. Phares. “This is the first research looking at the performance of a portfolio of companies chosen for their culture of health, safety, and well-being.”  

“It provides one more reason to invest in health. We’ve understood the value of employee health in saving on healthcare costs, improving productivity, and as the ‘right thing’ to do. This research demonstrates investing in health can also improve the long-term returns to stockholders.” 

 


 

Companies with healthier workforces experience: 

  • Lower health care costs 
  • Less absenteeism 
  • Higher productivity 
  • Less workforce turnover 
  • Better talent 
  • Less waste 
  • Higher employee engagement levels 

All these factors contribute to a competitive advantage in the marketplace and explain the outperformance. 

 


 

Download ten years of insights condensed into six pages in this peer-reviewed Journal of Occupational and Environmental Medicine article: Companies That Promote a Culture of Health, Safety, and Wellbeing Outperform in the marketplace.