In recent years, employers have become increasingly aware that employee well-being extends beyond the workplace. Factors such as housing, education, access to healthy food, and transportation—commonly referred to as social determinants of health (SDOH)—can profoundly impact an employee’s productivity, engagement, and overall health. Addressing these determinants not only improves individual well-being but can also lead to better outcomes for organizations, fostering a more resilient and successful workforce.
The Link Between Social Determinants of Health and Workforce Performance
Social determinants of health include a wide range of factors that affect an individual’s ability to thrive both personally and professionally. These include:
- Economic Stability: Income, employment, and financial security.
- Education Access and Quality: Opportunities for formal education and skill development.
- Health Care Access and Quality: Availability of preventive care and treatment.
- Neighborhood and Built Environment: Housing quality, air quality, and access to safe environments.
- Social and Community Context: Supportive relationships, social inclusion, and access to networks.
Studies have shown that employees who face challenges related to these factors are more likely to experience stress, mental health issues, absenteeism, and reduced job satisfaction. According to the American Journal of Public Health, individuals in lower socioeconomic positions are at greater risk for chronic health issues like cardiovascular disease, diabetes, and mental health disorders, which can lead to greater health care costs and a less productive workforce.
Employer Benefits of Addressing SDOH
By addressing these broader factors, employers can create a healthier, more engaged workforce that delivers higher performance and reduces operational costs. Here’s how:
- Reduced Absenteeism and Presenteeism: When employees struggle with social determinants like inadequate housing or food insecurity, they are more likely to miss work or come to work sick—both of which hurt productivity. Addressing these issues through employer-sponsored programs such as wellness initiatives, paid sick leave, or flexible work arrangements can lead to fewer sick days and a more present, focused workforce.
- Improved Employee Engagement and Retention: Employees who feel supported in their personal well-being are more likely to be engaged at work and remain with their employer long-term. Companies that prioritize social determinants of health show their commitment to employees’ holistic well-being, which can improve loyalty and reduce turnover. Research from Gallup shows that engaged employees are more productive and have higher job satisfaction, which translates to improved organizational performance.
- Lower Health Care Costs: Addressing social determinants of health can significantly reduce health care costs for employers. By offering benefits like access to health screenings, mental health services, or housing support, companies can reduce the incidence of preventable diseases and long-term health issues. Studies indicate that for every $1 invested in employee wellness programs, employers see a $3 return in reduced health care costs and absenteeism, according to the Centers for Disease Control and Prevention (CDC).
- Enhanced Productivity and Innovation: Employees who feel secure in their social and economic situations are more likely to contribute creatively and be productive. When employees don’t have to worry about basic needs like housing stability or transportation, they can focus on their work, leading to higher efficiency, better problem-solving, and innovative thinking that drives business success.
Strategies for Employers to Address Social Determinants of Health
Employers can adopt a variety of strategies to mitigate the impact of social determinants of health, both within the workplace and as part of broader community initiatives. Some effective approaches include:
- Providing Health and Wellness Benefits: Offering comprehensive health insurance, mental health resources, and access to wellness programs can help employees manage their health and reduce stress. This includes programs that target specific health concerns related to social determinants, such as diabetes prevention programs or smoking cessation initiatives.
- Financial Wellness Programs: Financial stability is a key determinant of health. Employers can assist employees by offering financial education, debt management resources, and even emergency savings programs. These initiatives can help alleviate financial stress, which is often a barrier to well-being and productivity.
- Flexible Work Arrangements: For employees facing transportation challenges or caregiving responsibilities, flexible work hours and remote work options can greatly reduce stress and allow employees to better manage their personal lives while maintaining job performance.
- Community Partnerships: Partnering with local organizations that focus on affordable housing, food security, or education can help employees access the resources they need to thrive outside the workplace. Employers can also advocate for policies that address social determinants of health on a broader scale, helping to create a healthier community for everyone.
- Creating a Supportive Work Environment: A culture of inclusion and support can mitigate the effects of social and community context determinants. Employees who feel respected and supported are more likely to perform well and be engaged. Employers should foster a work environment that values diversity, provides mental health support, and promotes strong social connections.
The Bottom Line: Investing in Social Determinants of Health
By addressing social determinants of health, employers not only enhance the well-being of their employees but also position themselves for greater success. Healthier employees are more productive, loyal, and engaged, which leads to lower turnover rates, fewer health care costs, and a more resilient business model overall.
As businesses continue to navigate complex challenges in an ever-changing world, creating a supportive, healthy work environment should be seen as a strategic investment—not just in the workforce, but in the company’s long-term success. Reach out to us today to learn more about our new employee program VitalLink that can connect your employees with the services they need.