Health and well-being are multidimensional. It encompasses physical, mental, and social well-being. The factors that affect it are also multifaceted, including the quality of their life at home, broader socio-health conditions, and even workplace environments. Majority of people spend a third of their lives at work, making it a significant factor in influencing health and well-being. Healthy employees keep the ground running to ensure continued success. For many people, the COVID-19 pandemic and the shift towards lifestyle-induced diseases make health a top priority.

Recognizing this, employers need to take a proactive approach to address the current health landscape and leverage new technologies to ensure the health of their employees and the continued success of their companies.

In response to these new challenges, KonsultaMD in partnership with WR Numero Research, conducted this study on Investing in Employee Health and Wellness, offering valuable guidance on the importance of focusing on employee well-being, how to implement such programs, and the positive returns to investing in employee health and well-being.

The study employed a three-pronged approach taking into account the perspectives of both the wider Filipino workforce and top company executives on issues of employee health and well-being. First, a national Employee Health Survey asked 1,516 Filipino employees  about  their  habits,  health  seeking behaviors, and the importance of health on their job considerations. Second, an in-depth Evidence Review collected key literature on the benefits of employee wellness programs not just for the employees but also for the company. Finally, the High Level Discussions focused on the current initiatives of Philippine companies in terms of employee wellness, their challenges and best practices. Together, these approaches provide an integrated view of employee health and wellness in the Philippines.

However, while the majority report that they enjoy their jobs, find fulfillment in what they do, and have positive relationships with their co-workers, work-related issues can cause mental and physical strain, which affects employee productivity. Younger and lower ranking employees report experiencing more mental and physical issues while at work.

Poor employee health leads to poor company outcomes.

Even seemingly minor conditions can cost companies thousands of pesos per year. For example, migraine results in an average annual productivity loss of Php 27, 794 (USD 556) per person (Haw et al, 2020). Moreover, productivity loss due to hypertension accounts for about 17% of the total economic burden and is projected to rise by 2050. The economic cost is expected to increase from US$1 billion in 2020 to US$1.9 billion by 2050 (Mercado-Asis et al, 2022).

Globally, poor health costs over $12 trillion, amounting to almost 15% of global gross domestic product (GDP) (Mckinsey Global Institute, 2020). The indirect costs of poor health resulting in absenteeism, presenteeism, and decrease in productivity yield higher costs for employers. This costs employers $1,685 per person per year, totalling to $225 billion. Disengagement and attrition due to lower well-being also costs companies between $228 million and $355 million a year in lost productivity (McKinsey Health Institute, 2023).

These losses can have a significant impact on the company’s revenue. One of the ways in which companies can avoid such losses is by investing in their employee’s health through health and wellness programs.

Existing studies on employee welfare programs notes that its effective implementation increases job satisfaction among employees (Argañosa & Binghay, 2024; Beloor et al., 2020; Ho, 1997; Park et al., 2015; Teti & Andriotto, 2013), enhances overall productivity and company performance (Gupta & Krishnamurti, 2018; Sabil et al., 2023), reduces operating costs (Juurikkala & Lazareva, 2012), prompts corporate innovation ability (Tong et al., 2016; Wei et al., 2020), and ensures occupational safety (Koo & Ki, 2020). Companies that fail to prioritize employee health are missing out on significant benefits, risking decreased performance and high turnover rates.

Human resources managers, as champions of employee well-being, would then need the necessary support in order to implement and sustain such programs. Their role is vital to ensuring that the company takes important steps to invest in their employees.

While challenges such as budgetary constraints and ensuring employee engagement persist, these can be addressed effectively and efficiently by utilizing technology-oriented solutions that are more cost-effective and accessible to the employees. Digital health platforms that offer medical consultations, medical support, and personalized solutions are already known to be cost saving, reducing travel and waiting times, leading to increased satisfaction and reduced stress. Experiences with teleconsultations during the COVID-19 pandemic also made people more open to utilizing such technologies until now.

Companies need to thrive, not just survive. For this to happen, employees must thrive as well.

By investing in employee health and wellness, companies ensure their long-term success and the improved health of their employees. Those who don’t will inevitably fall behind, missing out on the opportunity to boost morale as well as the company’s bottom line.

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