Employers Can Increase Employee Retention

1402 Words May 10th, 2015 6 Pages
Thesis Statement Research indicates that employers can increase employee retention, increase employee productivity, and reduce employee healthcare costs by implementing a workplace wellness program. Introduction America has a bleak outlook towards the costs associated with employee turnover, productivity decline, and increased employee healthcare costs due to chronic health care conditions. The cost of healthcare is increasing, and employers typically bear the brunt of these costs. Employers also face financial loss in regards to productivity decline and retention. In a Rand report, commissioned by the U.S. Government and compiled, by Matke and others, showed that the cumulative losses of all three domains associated with chronic …show more content…
Additionally a report compiled by Dr. Dursi of the University of Rhode Island showed that health promotion programs positively impact employee retention. Her research was able to show that employees who participated in wellness activities, sponsored by an employer, had longer employment tenure than those employees who did not participate (Dursi,2008). Employers today come up against many obstacles regarding employee productivity. Some of those concerns include health related absenteeism and presenteeism.. Matke and others observed there is a shift in burden to employers due to Americas aging workforce that results in loss of productivity brought on by illness related absenteeism and presenteeism (Matke and others, 2013). A report by Berry, Mirabito, and Baun show that absenteeism and presenteeism account for lost productivity costs that are 2.3 times higher than medical and pharmacy costs combined (Berry,Mirabito, and Baun, 2010) So how can employers combat the rising cost of loss productivity? One answer to the problem may be workplace wellness programs. Employers concern is typically associated with the bottom line. So how do workplace wellness programs affect the employers investment? An analysis of 33 compiled studies conducted by Osilla and others for the American Journal of Managed Care, indicate that for every dollar invested in a workplace wellness program; employers see a return on a investment of three dollars.
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