About the Publication

In our recently published peer-review article in the Journal of Occupational and Environmental Medicine, co-authors Raymond Fabius, MD, President of HealthNEXT, and Sharon Phares, Ph.D., found that companies with a culture of health outperform the stock market by an average of 2% per year. Over ten years, their study analyzed the results of a portfolio of publicly traded companies to test the theory that a commitment to employee health, safety, and well-being can lead to more robust returns.

How Companies Were Selected

The portfolio companies were identified by the receipt of various health, safety, and well-being awards and criteria established from a decade of research at HealthNEXT, the leader in building corporate cultures of health and wellness. The evaluation process included publicly available information such as an established workplace health clinic, a corporate health officer at the senior leadership level, and demonstrated leadership via presentations at health, wellness, and safety conferences.

Results of the Publication

Companies that showcase the most significant investments in employee health and well-being outperformed the stock market as expressed by the Standard & Poor’s 500 (S&P 500) despite the remarkable general advancement of this index over the decade of investment itself.

Conclusion

A focus on employee health and wellness resulted in a high return on investment for the portfolio companies and can positively impact business performance.

Companies with healthier workforces have been proven to experience:

  • Lower healthcare costs,
  • Less absenteeism,
  • Higher productivity,
  • Less workforce turnover,
  • Better talent,
  • Less waste, and
  • Higher employee engagement levels.

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

Employers, fund managers, and fund investors would be well served by including strategies that assess a company’s commitment to their workforce’s health, safety, and well-being when evaluating investments in their enterprise and portfolios.

 

Read the full publication.

How HealthNEXT Can Help

Through advanced measurement tools and on-demand Chief Medical Officers, HealthNEXT provides multi-year, strategic roadmaps to build a culture of health and well-being for corporations, resulting in reduced healthcare costs, enhanced productivity, and a long-term competitive advantage.

Categories: Culture of Health /