If We Had More Engaged Employees, Maybe Healthcare Wouldn’t Be Such a Big Deal

In 2007, the last year for which fairly precise estimates are available, the U.S. spent $2.26 trillion on healthcare, or $7,439 per person; and that amount is expected to grow 6.7% annually through 2017, much faster than wages and corporate profits. Since companies foot the bill for about 60 percent of Americans’ healthcare costs, they have ended up chronically hamstrung with lower growth and employment than they would have if costs were lower.

But there is a speck of light at the end of this economic tunnel. Research by the Gallup Organization suggests that one way to curb these spiraling costs is to focus on employee “engagement.” By definition, employees feel engaged when they find personal meaning and motivation in their work, receive positive interpersonal support, and operate in an efficient work environment.

A survey by Gallup asked employees how they think their daily work experience affects their physical and psychological health negatively, positively, or not at all. There were 43% who said their work life affects their physical health positively; 29% said work affects them negatively; and 27% said work does not affect their health at all. These results were consistent when looking across all job categories such as service workers, skilled tradesmen, semi-skilled workers, and laborers.

The alarming news from this survey is that almost 3 in 10 say their jobs are harming them physically. But here is an important fact: Among engaged employees, a clear majority - 62% - feel their work life positively affects their physical health. That number drops significantly to 39% among those who are not engaged, and 22% among those actively disengaged.

So one key to improving employee health and consequently reducing healthcare costs appears to be employee engagement. But how do we increase our number of engaged employees? Based on research by the Gallup Organization, the Corporate Leadership Council, Watson-Wyatt, and others, employee engagement comes from:

1. Giving employees a clear line-of-sight between what they do every day and the company’s mission. Everyone’s job relates to the company’s mission in one way or another. Employees just need to connect the dots.

2. Involving employees in helping run the business. Making sure they feel their input is valued, and giving them more control over their jobs.

3. Providing employees with information they need to do their job. Is their work unit getting ahead or behind? Are they on target with their projections?

4. Recognizing employees for outstanding work. Celebrating a job well done.

By creating an environment that fosters employee engagement, we’ll have a healthier workforce … which leads to lower healthcare costs … which leads to greater profitability … which benefits us all.