Strategies of Managing Health in the Workplace for Better Business Outcome - Abbotsford Construction - Case Study Example

Business Report: Strategies of managing health in the workplace for better business outcome Name Course Professor Institution of Affiliation Date Contents Contents 2 Executive Summary 3 Introduction 4 Health-related issues in the workplace 4 Corporate leadership, ethics, and health of workers 5 Impact of workers’ health on cost and productivity of the organization 6 Impact of integrating strategies of dealing with workplace pressures 6 Conclusion/Recommendation 7 List of References: 8 Appendix 9 Executive Summary The following report has been prepared for ­­­­­­Abbotsford Construction Limited in order to aid in establishing strategies of managing health in the workplace for better business outcome. The report addresses health-related issues in the workplace, corporate leadership, ethics, and health of workers, impact of workers’ health on cost and productivity of the organization, and the impact of integrating strategies of dealing with workplace pressures. Health-relates issues increased focus on performance and personal accountability, work-life imbalance, and fears about losing jobs, rapid and sustained organisational change which are caused by globalization and technology trends in the business environment. Corporate leadership, ethics, and health of workers concern the responsibilities of corporate leaders in endorsing and implementing policies of workplace health management. The impact of workers’ health on cost and productivity of the organization shows that poor workplace health management contribute to sickness absenteeism, poor workforce morale, and disabilities that manifest in forms of direct and hidden costs to the organization. Finally, the report provides the impact of integrating health management in the workforce as one that helps the organization reduce costs, attract and retain talent, and hence strengthen its competitive advantage. The rationale behind every discussion is that workplace health management can help the organization to attain a competitive advantage and increase overall performance. Recommendations as detailed in these report require to Identify its workplace issues that impact the health of their employees, and accept workplace health as an integral component of business performance; Reorganize the organizational structure and have a committed management that endorses and implement leadership policies and procedures to support the health and well-being of the workforce; Provide adequate and appropriate resources to implement a workplace health program and provide training and information for employees to enhance competency; and make a decision to adopt an Integral Health Management strategy in order to reduce costs from sicknesses, absence, and work disability and instead attain high performance and a competitive advantage. Report: Report on strategies of managing health in the workplace for better business outcome Introduction The purpose of this report is to provide a critical and analytical evaluation of strategies that can be used to manage health of workers in Abbotsford Construction Limited for better business outcome. Workplace health management has been warranted by the trends of globalisation and technological changes (Chu & Dwyer 2002). These changes have been directed to the nature of work and workplace practices in a way that they endanger the health of employees. The health of employees is correlated to the performance of the organization. Organizations that are keen of performance outcomes are now integrating or enhancing health management in their human resources programs (Rechenthin 2004). As such, the report will refer to the health-related issues in the workplace, corporate leadership, ethics, and health of workers, impact of workers’ health on cost and productivity of the organization, and the impact of integrating strategies of dealing with workplace pressures. The contents will endeavour to emphasize a level of comprehension to these discussions in deciding on a model to manage the health of workers in the organization. Health-related issues in the workplace Employee health is a growing concern for organizations all over the world as the workforce is the most important human asset for any corporation (Badran 2008). According to a study by Towers (2011), over 87% of employers expect employee health to be of even a higher priority by 2013 through 2015. Factors such as excessive work hours, increased focus on performance and personal accountability, work-life imbalance, and fears about losing jobs, rapid and sustained organisational change, are foremost sources of stress that impact the organizations of today (Badran 2008; Dollard, Winefield, & Winefield 2011; Rechenthin 2004). Specific to construction companies is the need to comply with scope of the project in terms of time and budget. As a result high risk jobs are engendered resulting to increased accident rates and other health hazards. Physical, psychological, and emotional health of employees is directly linked to the performance and well-being of the organization. The unprecedented economic environment has led to numerous cuts to HR programs and financial challenges to employers. Despite of these, most companies are committing to programs that are aimed to improve the health of workers, and consequently, the productivity of the organization. The workplace health strategy should incorporate four vital elements in order to deal with workplace issues. First, provide support that is workplace specific and easily accessible to the users. Second, create awareness by ensuring all stakeholders have knowledge of workplace issues. Third, ensure compliance, and fourth, provide rehabilitation mechanisms to support those who have been ill-affected by work. Abbotsford Construction Limited should establish and remain committed to strategies of workplace health and productivity. Corporate leadership, ethics, and health of workers Corporate governance and ethics goes hand in hand with strategies that will focus on benefitting both the employees and the organizations in a healthy and productive way. Malpractices that involve corporate leaders are a hindrance to creating surroundings that will allow workers to perform without jeopardizing their health. Patterson, Bennett & Wiitala (2005) observe that stressful work conditions contribute to individual stress, state of poor health, and even the risk of abuse. However, protective factors in the personal and workplace levels can contribute to a more positive unwinding. Even governments have stepped in to shield employees from harmful work conditions that can interfere with their health. For instance, the Occupational Safety and health Service (OHS) of 2003 is New Zealand’s program with the aim of promoting safer and healthier workplaces (App.1). The OHS (2003) points to the involvement of the workforce personnel and leaders in regard to their role in promoting healthy ways of living. This is through decreasing the rate of stress, and other health risks through preventive strategies. Organizational leaders should steer business ethics in order to attain healthy organizations (Corbett, 2004). Impact of workers’ health on cost and productivity of the organization The health of workers affects the performance of organizations in various ways. Absenteeism as a result of sickness and, or disabilities limit the work performances levels. According to Badran (2008), the cost of poor health management is difficult to estimate as most are hidden costs. Some of the familiar hidden costs if poor health conditions are low employee morale and reduced productivity, increased accidents and injuries, poor decision-making, increased insurance claims, and increased staff turnover. Moreover, the indirect cost of absence is over three times the direct cost from ill health and poor working conditions (Badran 2008). Nevertheless, most companies around the world have realized the importance of attaining competitive advantage through improving the health and productivity of their workers (Towers 2011). Substantial studies reveal that companies with the most effective health and productivity programs also experienced superior human capital and financial outcomes (Lowe, 2003). Even in countries with government-provided health care, still employers offer additional coverage to supplement the provisions, or even allow faster access to treatment and health care options (Towers, 2011). It is important to identify the root causes of health care cost increases and erosions to productivity in order to strengthen the link between health and effectiveness of employees. Impact of integrating strategies of dealing with workplace pressures The globalisation and technological trends have largely contributed to the need of integrating health management in the workplace (Lowe 2003). These trends have led to changes in the nature of work and work practices of which some require longer working hours, and dealing with items that could be pose as risk-hazards to workers, among others (Chu & Dwyer 2002; Dollard, et al. 2011). Nevertheless, most organizations are integrating the health management to assist workers to deal with work-related pressures. Zwetsloot & Pot (2004) propose the Integral Health Management (IHM) model as a strategic approach to reduce costs on sickness absenteeism and also work disability. Badran (2008) observes that workplace health management has desired outcomes. For the individual, there will be improvement on the overall health, job performance, higher job satisfaction, and lifestyle behaviour change. For the organization, there will be increased productivity, efficiency, competitiveness, growth, reduced financial loss, and talent-attraction and retention. Conclusion/Recommendation This report has analyzed relevant evidence and discussions on strategies to manage health for better business outcomes. Health-related issues are a growing concern because of their link to competitive advantage and overall performance of the organization. The causes include advances of technology and globalization which have altered work-practices and nature of work. The report has addressed the health-related issues in the workplace, such as stress, corporate leadership, ethics, and health of workers, impact of workers’ health on cost and productivity of the organization, and the impact of integrating strategies of dealing with workplace pressures. Abbotsford Construction Limited has a chance to enhance its competitive advantage and improve overall business performance through integrating strategies of health management in the business for better outcomes. For the program to be beneficial, it must include both the strategy and organizational approach. Abbotsford should do the following: 1. Identify its workplace issues that impact the health of their employees, for instance nature of work, period of work, and the work environment, and accept workplace health as an integral component of business performance. 2. Reorganize the organizational structure and have a committed management that endorses and implement leadership policies and procedures to support the health and well-being of the workforce. 3. Provide adequate and appropriate resources to implement a workplace health program and provide training and information for employees to enhance competency. 4. Make a decision to adopt an Integral Health Management strategy in order to reduce costs from sicknesses, absence, and work disability and instead attain high performance and a competitive advantage. List of References: Badran, L. 2008. Effective workplace health management, Occupational Health and Safety, viewed 4 October 2011 from http://www.ehealthpromotion.net/occu/management.htm Corbett, D. 2004. ‘Excellence in Canada: Healthy organizations: Achieve results by acting responsibly’, Journal of Business Ethics, vol. 55, no. 2, pp. 125-133 Chu, C., & Dwyer, S. 2002. ‘Employer role in integrative workplace health management: A new model in progress’, Dis Manage Health Outcomes, vol. 10, no. 3, pp. 175-186 Dollard, M., F, Winefield, A., H & Winefield, H., R. 2011. Occupational stress in the service Professions. London: Taylor and Francis. Lowe, G., S. 2003. Healthy workplaces and productivity: A Discussion Paper. Economic Analysis and Evaluation Division, Health Canada Occupational Safety and Health Service /OSH. 2003. ‘Healthy work: Managing stress in the workplace: Health and safety is good business’, Department of Labour of Tari Mari, http://www.workinfo.govt.nz Patterson, C., R., Bennett, J.,B., & Wiitala, W.,L. 2005. ‘Healthy and unhealthy stress unwinding: Promoting health in small businesses’, Journal of Business and Psychology, vol. 2, no. 2, pp. 221-247. Rechenthin, D. 2004. ‘Project safety as a sustainable competitive advantage’, Journal of Safety Research, no. 35, pp. 297-308 Towers, W. 2011. Multinational workforce health: Building a sustainable global strategy, viewed 6 September 2011 from http://www.towerswatson.com/research/4572 Zwetsloot, G & Pot, F 2004, ‘The business value of health management’, Journal of Business Ethics, vol. 55, no. 2, pp.115-124 Appendix Occupational Safety and Health Service (OSH): A program under the Department of Labour with the responsibility of enforcing the Health and Safety Employment Act first enacted in 1992. Read More