Is there a correlation between a company’s investment in community health and employee health and wellness and their stock market performance? In the study, “Developing Two Culture of Health Measurement Tools,” HealthNEXT President and Chief Medical Officer Dr. Ray Fabius and other experts in the population health management and informatics fields developed tools to quantify employer investment in building internal and external cultures of health. An internal culture of health includes programs and policies that support an employee’s health, whereas an external culture of health includes initiatives that support a community’s health and well-being.
While many studies are available to support the financial benefits of investing in an internal culture of health, the business case for corporate investments in community health is less clear. This study was conducted to better determine whether companies that invest more in employee and community health outperform companies that invest less, as shown by trends in their employees’ health risk profile, medical expenditures, and company stock price.
The Benefits of Investing in an Internal and External Culture of Health
Businesses have the ability and incentive to improve the health and well-being of their workers. By building a workplace culture of health (COH) with strong leadership commitment, a variety of evidence-based programs, and a physical and social environment that supports and encourages healthy behaviors, employers may increase employee engagement and productivity, improve physical and mental health, and in many cases, reduce healthcare spending that can affect the company’s bottom-line performance.
Alternatively, corporate investment in community health may enhance an organization’s reputation and strengthen its brand. The investment can also solve significant social and economic problems resulting in healthy, vibrant communities that draw talent to the enterprise and retain experienced staff.
The Results
Results of the study show little correlation between the internal culture of health survey scores and the external culture of health surveys. This may result from the initiatives being performed by different company divisions with different goals, objectives, and interests.
Although the current study could not draw a definitive conclusion on the correlation between investment in an internal culture of health and external culture of health scores, it provides evidence that building an internal COH may more quickly impact organizational performance. Companies that scored high in their pursuit of an internal culture of health outpaced the stock market standard indices. This was not the case for companies focus on supporting their communities’ health.
Dr. Fabius remarks, “The study suggests, to use an airline example, you have to put your mask on before you can help others, and I believe this strongly. The best way to help the health and wellbeing of a community is to build cultures of health within the community’s largest companies. The magnitude of that work will ultimately have an influence on the communities at large.”
Key Takeaways
The study reinforces the merits of building an internal culture of health, as suggested in previous studies conducted by Dr. Ray Fabius and others, while also raising the potential benefits of simultaneously investing in community initiatives. The authors of the study reflect, “Not only does volunteerism provide direct benefit to the community, but it has also been shown to improve the psychological well-being of the volunteers (employees) themselves.”
While investing in the health and well-being of employees can provide immediate benefits in terms of lower healthcare medical trends, higher employee retention, and lower absentee rates, investing in the health of the surrounding community can offer longer-term benefits of a healthier future talent pool.
Indirectly, an investment in an internal culture of health benefits the community through the employees that live and work locally. Dr. Ray Fabius states, “The study suggests that you can impact a population of employees more quickly and perhaps more efficiently than trying to address a huge community of citizens less well known or connected to employers.”
HealthNEXT supports the internal culture of health initiatives through a two-part Culture of Health program that assists organizations in developing a strategy to improve workforce health, resulting in a stronger and healthier workforce that benefits the organization and the local communities.
