Reasons to be cheerful: satisfied staff cut bosses’ insurance costs

Employers who try to make their workers happier are being offered lower insurance premiums.

Dr Sherif Mahmoud, regional head of health care for AXA Insurance in the Gulf, said companies that ran successful programmes to improve their staff members’ well-being generally filed fewer claims.

AXA’s policy recognises the link between well-being, health and productivity, which can lead to better efficiency and profits.

Companies are hiring “happiness officers” to organise social events and other schemes to keep their employees motivated.

“We have seen from experience that when employees are fully engaged in their company’s wellness scheme, the resulting claims generally fall, either in terms of frequency or cost,” Dr Mahmoud said.

“Ultimately, these savings are reflected in the premiums that our customers pay.”

He said research, carried out by management consultancy Gallup and involving 22,000 workers, proved the link between happiness and productivity. Other studies found employees who feel well or consider themselves healthy are 84 per cent less likely to change their jobs.

And a GCC Insights report from March 2016 by Global Corporate Challenge found that the cost of employees being present but not fully productive was 10 times greater than absenteeism.

AXA is among the companies in the Gulf that has invested in initiatives such as flexible working hours designed to make workers more content.

Last year, Karim Ghaleb was appointed “happiness lead” at Cequens, a communications company with offices in Dubai.

Mr Ghaleb said the company introduced a series of “happy quick wins”, such as organising events for Ramadan and Eid, and improving communication with staff.

Cequens recently advertised for a new happiness officer to help with its long-term strategy, which includes nurturing “a culture of warmth and belonging” at work.

“We highly believe in the magic of engaged and enabled employees for overall

Studies found workers who feel well are 84 per cent less likely to change their jobs