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Health and Productivity Management in Australia

Introduction

(The information in this document has been sourced from the Access Economics Report 06-07, The World Health Organisation - preventing Chronic Disease a vital investment and the BCA Budget Submission).

Health and Productivity Management programs have been running in the USA and Europe for the past few years. They have proven to be a successful means of improving the health of employed adults. Programs tend to focus on identifying the risk factors of employees that may result in the onset of chronic disease, substantially inhibit productivity in the workplace and incur a serious health and economic burden.

The business communities that have implemented these programs see them as an economic necessity. Evidence supports that there are clear links between the health and economic development of a country. Chronic disease hinders economic growth by reducing the quantity and productivity of the labour force. If current trends persist Australian could potentially lose substantial amounts of national income as a result of the impact of deaths and productivity loss from chronic diseases on labour suppliers and savings impacting on the GDP.

In Australia chronic disease accounted for 90% of all deaths in 2002. Common modifiable risk factors are the underling cause of chronic diseases and can be found at all ages, in men and women. Risk factors are lifestyle related and include an unhealthy diet, physical inactivity and smoking. If these risk factors were eliminated or improved, at least 80% of all heart disease, stroke and type-2 diabetes and 40% of cancer would be prevented.

The productivity of any organization is linked to the health of its employees, and ultimately the bottom line.

What is Health and Productivity Management (HPM)

Health and Productivity Management (HPM) is the integration of data and services related to all aspects of employee health that affect work performance; it includes measuring the impact of targeted interventions on both employee health and productivity. (The Institute of Health and Productivity Management).

The objective of HPM programs is to provide incentives to achieve behaviour change, reduce risk factors and improve health, by supporting healthy lifestyle choices that ultimately result in lower total costs. A reductions in "direct" costs can be seen in the short term be they; medical, absenteeism, disability insurance or workers compensation, but it's the "indirect" costs known as presenteeism resulting in productivity loss that truly make the business case for investing in workforce health. (Sean Sullivan, President IHPM). The health and productivity management programs also have the added benefit of creating a workplace environment that is health-conscious, providing for easier follow-up and long-term behaviour change with participants.

Considering most adults spend a significant portion of their time in a work environment and are often surrounded by peers who may influence their behaviour and attitude the implementation of HPM in the workforce is an overall effective health prevention strategy.