Companies with healthy employees perform better in stock market

New York, Feb 7 (IANS) Highlighting health as an important factor in the financial health of a corporation, a study has found that companies with best-in-class workplace health programmes for employees are able to secure a competitive edge in the stock market.

The study compared the stock market performance of 10 of the healthiest companies in South Africa. Nine different investment scenarios were tested and, in all nine scenarios, the healthy companies outperformed the Johannesburg Stock Exchange All Share Index.

Previous studies linking the stock prices of US companies with high-performing employee health and well-being programmes found that firms with good workplace health programmes outperformed the Standard & Poor’s index by 7-16 percent per year.

“Taken together, these four studies add to the growing mountain of evidence that workforce health is an important factor in the financial health of a corporation,” said Daniel Malan, a lecturer at South Africa’s University of Stellenbosch Business School, and an an author of the South African study.

“Now that the connection has been made, employers can see that the decision to invest in the health of their employees is a decision associated with a healthy bottom line. Not only do employees benefit, but stockholders benefit as well,” Malan added.

Authors of all four studies were members of the Vitality Health Metrics Working Group, a group of health experts and corporate leaders that is calling for the voluntary public reporting of aggregated workforce health metrics.

“In order for corporations to achieve sustained success, they must focus on the day-to-day issues that are critical to progress, such as the health of their most valuable asset – their employees,” said Derek Yach, chief health officer of Vitality and chair of the Health Metrics Working Group.

The study findings were published in the February issue of the Journal of Occupational and Environmental Medicine (JOEM).

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here