The focus on holding down wage levels, reducing benefits, and offshoring is beginning to give way to an awareness of the
positive effects that a living wage, safety, wellness, training, and opportunities for advancement for employees have on
productivity. Many companies, for example, traditionally sought to minimize the cost of “expensive” employee health care
coverage or even eliminate health coverage altogether. Today leading companies have learned that because of lost workdays
and diminished employee productivity, poor health costs them more than health benefits do. Take Johnson & Johnson. By
helping employees stop smoking (a two-thirds reduction in the past 15 years) and implementing numerous other wellness
programs, the company has saved $250 million on health care costs, a return of $2.71 for every dollar spent on wellness from2002 to 2008. Moreover, Johnson & Johnson has benefited from a more present and productive workforce. If labor unions
focused more on shared value, too, these kinds of employee approaches would spread even faster.
The focus on holding down wage levels, reducing benefits, and offshoring is beginning to give way to an awareness of the
positive effects that a living wage, safety, wellness, training, and opportunities for advancement for employees have on
productivity. Many companies, for example, traditionally sought to minimize the cost of “expensive” employee health care
coverage or even eliminate health coverage altogether. Today leading companies have learned that because of lost workdays
and diminished employee productivity, poor health costs them more than health benefits do. Take Johnson & Johnson. By
helping employees stop smoking (a two-thirds reduction in the past 15 years) and implementing numerous other wellness
programs, the company has saved $250 million on health care costs, a return of $2.71 for every dollar spent on wellness from2002 to 2008. Moreover, Johnson & Johnson has benefited from a more present and productive workforce. If labor unions
focused more on shared value, too, these kinds of employee approaches would spread even faster.
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