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BGM Part 2 – Health as a private matter or corporate factor?

BGM Part 2 – Health as a private matter or company factor?

June 4, 2021

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The first part of the BGM blog series dealt with the difference between a yoga course or health day and a holistic BGM approach. But is it really worth it, or isn’t health a private matter for employees after all? This is a question that many companies are still asking themselves. The second part of the BGM blog series therefore deals with the importance of BGM for the success of a company.

Source: Scott Graham via unsplash.com

BGM expenditures – costs purely for corporate social responsibility?

Various studies have proven that although BGM initially incurs costs, the long-term benefit gains and cost savings exceed them. Suitable key figures can make this target achievement and the cost-benefit ratio more concrete and measurable.

The direct costs of six weeks’ continued pay in the case of absences due to illness are of direct importance to a company. However, other costs that are not intuitively classified as BGM-relevant also arise at second glance. These indirect costs arise from process delays, resulting in a vicious circle of further absences. On the one hand, this includes an increased workload due to understaffing. On the other hand, new hires and induction training in the event of a long-term absence cause so-called friction costs. Overall, absences due to illness cost companies an average of €1,199 per employee/year.¹

This must not simply be accepted as an evil that cannot be influenced or as a private matter for employees. Although the most common illnesses in Western industrialized countries, such as cardiovascular diseases, musculoskeletalystems, the respiratory tract and mental illnesses are not very comparable in their symptoms and effects. However, their causes are largely attributable to a lack of prevention in the areas of exercise, nutrition, relaxation and addiction. These are also reflected in the fields of action of occupational health management (see Part 1). In addition to private life, the workplace setting, in which the population spends a large part of their day, can play a key role here.

Occupational health management indicators (systems) as an interlinking of social and business objectives

The return on investment (ROI) is also a common financial indicator in occupational health management to determine the concrete profitability of measures and projects. However, a BGM has even more advantages than the pure financial benefit in comparison to the investment. Therefore, so-called KPI systems are recommended, which, in addition to hard KPIs (e.g. sick leave or fluctuation), also collect soft KPIs (e.g. employee satisfaction and commitment).

Source: Celpax via unsplash.com

By expanding the ROI to the so-called Value on Invest (VOI), the long-term, future-oriented benefit for a company through a BGM also becomes clear. In addition to absenteeism due to illness, this also takes intangible costs into account as the tip of the iceberg. The so-called presenteeism describes employees who are present in the company. However, due to poor (health) conditions or a lack of motivation, they are unable or unwilling to achieve their full performance potential. The additional company costs due to presenteeism amount to an average of €2,399 per employee/year.²

Finally, occupational health management is an effective means of positioning a company’s image on the labor market as an attractive employer (“employer branding“). In the “war for talent,” health-conscious new employees and young talent can have a long-term positive impact on health-related absenteeism and the company’s productivity.

References:

¹ https://de.statista.com/themen/33/krankheit-und-beruf/
² https://de.statista.com/themen/33/krankheit-und-beruf/

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Larissa Freudenberg

Larissa Freudenberg is 26 years young and comes from near Frankfurt am Main. In 2017, she successfully completed her Bachelor’s degree in Health Care Economics at Wiesbaden Business School. Currently, Larissa is writing her master’s thesis at FOM. She works for an auditing company in Advisory in the field of health care economics. Her motto is: “Health is not everything, but without health everything is nothing.” (A. Schopenhauer)

After the first year of her Master’s degree in Health Economics at the University of Bayreuth, Katja Stenzel is currently deepening her interest in prevention & health promotion through voluntary internships. After combining her experience in fitness and human resources in corporate health management at the end of 2020, she is now currently expanding her practical experience in the field of public health.

Katja Stenzel

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The post BGM Part 2 – Health as a private matter or corporate factor? appeared first on Hashtag Gesundheit e. V..

Source

BGM Part 2 – Health as a private matter or corporate factor?

June 4, 2021

No comments

Source Post Image:

The first part of the BGM blog series was about the difference between a yoga class or health day and a holistic BGM approach. But is it really worth it, or isn’t health a private matter for employees after all? This is a question that many companies are still asking themselves. The second part of the BGM blog series therefore deals with the importance of BGM for the success of a company.

Source: Scott Graham via unsplash.com

BGM expenditures – costs purely for corporate social responsibility?

Various studies have proven that although BGM initially incurs costs, the long-term benefit gains and cost savings exceed them. Suitable key figures can make this target achievement and the cost-benefit ratio more concrete and measurable.

In the case of sickness-related absences, the direct costs of six weeks’ continued pay are of direct importance to a company. However, other costs that are not intuitively classified as BGM-relevant also arise at second glance. These indirect costs arise from process delays, resulting in a vicious circle of further absences. On the one hand, this includes an increased workload due to understaffing. On the other hand, cause ae rehiring and training in the event of a long-term absence, so-called friction costs. Overall, absences due to illness cost companies an average of €1,199 per employee per year¹.

This must not simply be accepted as an evil that cannot be influenced or as a private matter for employees. It is true that the most common diseases in Western industrialized countries, such as cardiovascular, musculoskeletal, respiratory and mental illnesses, are not very comparable in their symptoms and effects. But their causes are largely due to a lack of prevention in the areas of exercise, nutrition, relaxation and addiction. These are also reflected in the fields of action of occupational health management (see Part 1). In addition to private life, the workplace setting, in which the population spends a large part of their day, can play a key role here.

Occupational health management indicators (systems) as an interlinking of social and business objectives

The return on investment (ROI) is also a common financial indicator in occupational health management to determine the concrete profitability of measures and projects. However, a BGM has even more advantages than the pure financial benefit in comparison to the investment. Therefore, so-called KPI systems are recommended, which, in addition to hard KPIs (e.g. sick leave or fluctuation), also collect soft KPIs (e.g. employee satisfaction and commitment).

Source: Celpax via unsplash.com

By expanding the ROI to the so-called Value on Invest (VOI), the long-term, future-oriented benefit for a company through a BGM also becomes clear. In addition to absenteeism due to illness, this also takes intangible costs into account as the tip of the iceberg. The so-called presenteeism describes employees who are present in the company. However, due to poor (health) conditions or a lack of motivation, they are unable or unwilling to utilize their full performance potential. The additional company costs due to presenteeism amount to an average of €2,399 per employee/year.²

Finally, occupational health management is an effective means of positioning a company’s image on the labor market as an attractive employer (“employer branding“). In the “war for talent,” health-conscious new employees and young talent can have a long-term positive impact on health-related absenteeism and the company’s productivity.

References:

¹ https://de.statista.com/themen/33/krankheit-und-beruf/
² https://de.statista.com/themen/33/krankheit-und-beruf/

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you like this article? Then feel free to share it on your social networks

:

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Larissa Freudenberg

Larissa Freudenberg is 26 years young and comes from near Frankfurt am Main. In 2017, she successfully completed her Bachelor’s degree in Health Care Economics at Wiesbaden Business School. Currently, Larissa is writing her master’s thesis at FOM. She works for an auditing company in Advisory in the field of health care economics. Her motto is: “Health is not everything, but without health everything is nothing.” (A. Schopenhauer)

After the first year of her Master’s degree in Health Economics at the University of Bayreuth, Katja Stenzel is currently deepening her interest in prevention & health promotion through voluntary internships. After combining her experience in fitness and human resources in corporate health management at the end of 2020, she is now currently expanding her practical experience in the field of public health.

Katja Stenzel

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Previous post
BGM – more than a back course and a colorful fruit basket
Next post
The COVID pandemic in low & middle income countries

The post BGM Part 2 – Health as a private matter or corporate factor? appeared first on Hashtag Gesundheit e. V..


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