Companies with strong health, wellness and safety programs outperform others in ROI simulations

Dec 26, 2013

September 24, 2013 by Knowledge at Work - UL


Companies that build a culture of health by focusing on the well-being and safety of their workforce may yield greater value for their investors, according to a study published in the September issue of the Journal of Occupational and Environmental Medicine (JOEM). In the study, HealthNEXT LLC, examined the stock market performance of companies that have received the American College of Occupational and Environmental Medicine’s Corporate Health Achievement Award (CHAA), which annually recognizes companies in North America for demonstrable efforts to reduce health and safety risks.

Tracking an initial theoretical investment of $10,000 from the mid-1990s to 2012, researchers found CHAA-winning companies outperformed the S&P 500. Researchers used four investment scenarios, a combination of simulations and past market performance to create investor portfolios for comparison. In the highest-performing scenario, award recipients had an annualized return of 5.23% vs. −0.06% for the S&P 500. In the lowest-performing scenario, the study group had an annualized return of 6.03% vs. 2.92% for the S&P 500.

“Our results strongly support the view that focusing on health and safety of a workforce is good business,” the study authors said.

Citation: Fabius R, Thayer RD, Konicki DL, et al.; The link between workforce health and safety and the health of the bottom line: tracking market performance of companies that nurture a “culture of health,”J Occup Environ Med., 2013;55(9):993-1000.

Category :  Workplace Safety

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