Phil Mullen: Health should be the fourth pillar of ESG

Compelling companies to report on a range of employee health metrics found boost the nation's wellbeing and productivity says Phil Mullen, managing director EMEA at TELUS Health say

Global health care systems have been under increasing pressure in recent years, and the UK is no exception. In fact, the nation’s health has been declining for some time and it is not only a significant economic burden but also a cause for concern for public health. 

In 2020, life expectancy fell for the first time since 2000, and health issues are at an all-time high in the country. The cost of ill-health is staggering, with data revealing that the UK loses 131m working days each year due to illness, amounting to a cost of approximately £180bn.

Additionally, our TELUS Mental Health Index found that one in six British employees are dissatisfied with the level of available healthcare, and this group of workers reports the lowest mental health. The study also found that almost half (42 per cent) of those who were dissatisfied with health care cited little or no access to a family doctor, while 37 per cent cited long wait times for treatment.

These findings highlight the paradox between high economic inactivity due to ill health, coupled with the void of accessible health services and support. Moreover, the negative impact of poor access to healthcare for mental health cannot be overstated. Considering that poor health is linked to reduced productivity and engagement, it is in the best interest of every employer to adopt a proactive approach to support the wellbeing of their employees.

If we take Environmental, Social and Governance (ESG) for example and the onus that has been placed on corporate responsibility in the past years, which is only growing, then it makes sense that health should be part of a company’s corporate and social responsibility.

By making health a central component of ESG frameworks, companies can better support the physical and mental wellbeing of their employees, promote more resilient and efficient workforces, and contribute to the overall health of the British population. Also, if we can adopt some of the techniques and arguments that have been used in the climate world, then we can make a similar impact on this equally important problem of employee health.

For example, some of the techniques used to address climate change include advocating for policy changes and focusing on data and evidence. There have been numerous campaigns to persuade governments and policymakers to take action on climate change, such as implementing carbon taxes or reducing greenhouse gas emissions. Similar techniques could be used to advocate for policies that promote employee health, such as flexible working arrangements, mental health support and health promotion programmes like discounted gym passes, companywide exercise initiatives and offering digital tools to help give health assessments.

Additionally, the climate change movement has emphasised the importance of scientific evidence and data to support its arguments. Just like ESG reporting, businesses would be asked to report on the health of their workforce and the policies they have in place to promote employee health and wellbeing. This could include data on absenteeism and healthcare costs, as well as information on health-related behaviors such as diet and exercise.

Measuring and reporting on employee health can also lead to significant benefits for companies and their employees. It can help businesses understand the health status of their staff and identify areas for improvement. Businesses can then develop targeted interventions to address health issues and create a healthier and more productive workforce. For example, our research found that the average counselling case reduces work absenteeism by 57 per cent, with 40 per cent of lost productive time recovered. Additionally, mental health programmes improve employee productivity by 20 hours per month and employees who accessed counselling were able to gain more than three days’ worth of work compared to their productivity levels before they received counselling. 

This highlights the benefits of investing in counselling services as a way to support employee wellbeing and productivity. Not only can this have a positive impact on employee wellbeing, but it can also result in better business outcomes and help to enhance the company’s reputation as a responsible and caring employer.

At TELUS Health, we have conducted research on how businesses can support their employees, and we have discovered the significant benefits of mental health programs such as Employee Assistance Programmes (EAPs). Our findings show that personal stress, anxiety, and depression remain the main reasons why employees seek assistance, but the good news is that effective mental health programmes can make a difference. In fact, they can positively impact the bottom line of organisations. For example, our data shows a reduction of 45 per cent reported workplace distress after EAP counselling.

We’ve always known that good health is invaluable, but this isn’t just about the individual or within a community, now more than ever, it relates to the national economy.

Therefore, with ESG only growing in importance and companies likely to come under further scrutiny in the coming years, there needs to be a collaborative approach between policymakers and companies to enable them to deliver high impact and scaled up health outcomes. 

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