7 Reasons Why Healthier Teams Perform Better

In today’s business environment, you’re likely doing everything you can to give your teams a competitive edge. As you do so, be sure not to overlook your teams’ health and well-being. The health of a team is crucial to its performance, and healthier employees are often happier, more productive, and more successful.

Here are a few benefits you can expect when investing in employee health.

The Connection Between Health and Job Performance

Myriad studies have shown a connection between health and job performance throughout the past decades.

Looking at one of the earliest examples, Johnson & Johnson found that, between 1995 and 2010, the number of employees who smoked dropped by more than two-thirds. Over 10 years, this saved the company an estimated $250 million in employee healthcare costs. Between 2002 and 2008, Johnson & Johnson estimated an ROI of $2.71 for every dollar spent on employee healthcare.

While investing in employee wellness programs certainly can help prevent unnecessary healthcare costs, today, the value of these programs lies more so in the other benefits that employers notice, as a 2019 report from Harvard Medical School explained. Researchers found it difficult to track an immediate ROI on wellness-related costs when just looking at healthcare spending. Instead, immediate benefits include greater productivity, easier talent acquisition and retention, and greater team camaraderie.

It’s easy to see why this would be the case. Employees’ physical health directly impacts their stress, stamina, cognitive performance, and energy.

Additionally, Gallup studies have found that employees who feel that their organization “strongly” cares about their overall well-being are 4.4 times as likely to be engaged at work, 7 times more likely to agree that their organization is a great place to work, 73% less likely to feel burned out at work often or always, and 53% less likely to be seeking a new job.

7 Reasons Healthier Teams Perform Better

Need more evidence that healthier teams perform better? Here are seven key examples.

1. Healthier Teams Have More Energy and Focus

Regular exercise and balanced nutrition contribute to sustained energy levels, improving productivity and efficiency in meetings and daily tasks. Many studies have noted an association between physical activity and a reduced risk of fatigue in active adults compared with sedentary peers.

2. Healthier Teams Require Lower Healthcare Costs

While immediate financial returns might not be apparent, healthier teams can significantly reduce long-term healthcare expenses. By implementing preventative wellness programs, you can significantly reduce ongoing costs. For example, healthier teams can lead to lower healthcare expenses and sick days for organizations, offering long-term financial benefits, as seen in the above examples from Harvard’s researchers.

3. Healthier Teams Experience Less Stress

Wellness programs that promote physical activity and healthy eating can help reduce team members’ stress levels. According to the British Journal of Health Psychology, “physical activity and healthy eating seem to be protective against experiencing stress and negative affect as well as increase positive affect,” leading to sustained productivity and job satisfaction.

4. Healthier Teams Have a Higher Morale

As highlighted in the Gallup study, employees who perceive their workplace culture as prioritizing their well-being are significantly less likely to consider leaving and more likely to be engaged.

5. Healthier Teams Have Higher Job Satisfaction

As Gallup reported, these employees are much more likely to agree that their workplace is positive and actively recommend it to other talent. Similarly, according to Forbes, one study found that 87% of employees consider health and wellness packages when choosing an employer. Additionally, 67% of employees who work for organizations with wellness programs like their jobs more, and this same percentage is extremely or very likely to recommend their employer to others.

6. Healthier Teams Are More Creative

Research indicates that poor mental health can significantly hinder creativity. When asked if they were struggling with mental health, survey participants who reported “not at all” required 23% less effort to complete creative tasks compared to those who struggled “very much.” Therefore, maintaining a healthy mind and body enhances creativity and problem-solving skills, fostering innovation within the team.

7. Healthier Teams Show Greater Cognitive Function

According to a Frontiers in Public Health article, cognitive health — which includes employee tasks and skills such as remembering, learning, decision making, emotional regulation, and more — is impacted by a range of factors that are out of employees’ control, but also impacted by a large number of completely controllable factors, including diet and physical activity, social engagement, cognitive activity, smoking, and alcohol consumption. Adequate sleep, hydration, and nutrition improve cognitive function, enabling team members to make better decisions and work more effectively.

How to Measure the Impact of Healthier Teams

How do you measure results and benefits like these in your organization? Track key performance indicators to measure improvements in team health and productivity. Regularly assess and refine your wellness initiatives based on these KPIs and employee feedback to ensure their effectiveness and relevance.

The Bottom Line

Prioritizing team health leads to greater productivity, improved morale, and a thriving work environment. As such, investing in corporate wellness programs benefits employees and contributes to the long-term success of the organization.

Need help getting started? Book a free consultation call to learn more about our Corporate Wellness offerings.