Archive

Attachments:

• The Business Case for Active Living at Work
• The Economic Benefits
• Ten Reasons to Support Physical Activity at the Workplace

INFORMATION March 2001

The Economic Benefits

Studies show that physical activity at the workplace can:

• Improve employee fitness and health;
• Improve productivity and morale;
• Improve job satisfaction and team spirit;
• Reduce absenteeism and turn;
• Reduce stress and back injuries;
• Reduce workplace injuries and workers' compensation costs; and
• Reduce claims against group benefit plans.

Canada Life Assurance in Toronto showed a return of $3.40 per corporate dollar invested through reduced turnover, productivity gains and decreased medical insurance claims. In the first year of the Canada Life program, employee turnover was only 1.8 per cent per year among frequent participants, as compared with an initial company-wide average of 18 per cent. Seven years after the program started, turnover rates were still 8 per cent lower among frequent program participants than among dropouts. (Shephard, Roy J. Twelve Years Experience of a Fitness Program for the Salaried Employees of a Toronto Life Assurance Company. American Journal of Health Promotion 6(4) 292-301 March/April 1992)

In a review of studies, it was estimated that corporate wellness programs resulted in an estimated cumulative economic benefit of $500 - $700 per worker per year. (Shephard, Roy J. Do Work-Site Exercise and Health Programs Work? The Physician and Sportsmedicine Online - February 1999)

Municipal employees in Toronto missed 3.35 fewer days in the first six months of their "Metro Fit" fitness programs than employees not enrolled in the program.

Data from a cost/benefit study in 1996 on the BC Hydro sponsored fitness program showed:

• $1.2 million reduction in annual sick leave costs;
• $97,000 reduction in annual accident costs;
• $35,000 Workers' Compensation Board rate reduction;
• Productivity gains of $919,000; and
• Employee retention and corporate image gains
• - turnover rate of 3.5 per cent among fitness program participants compared with the company average of 10.3 per cent.

MDS Nordion reports positive results from their corporate wellness program:

• Annual grievances have been reduced significantly from 50 to five since the early 1990s;
• Absenteeism has been reduced from six days per year in 1993 to an average of four days in 1999.