Management Practices, Workplace Health Promotion and Productivity

Uwe Jirjahn and Jens Mohrenweiser

No 1643, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: Since the emergence of personnel economics, economists have been increasingly aware that the management practices used by firms are an important determinant of productivity. However, it is an open question of whether the impact of management practices on the productivity of firms depends on workplace health promotion activities (alternatively called workplace wellness programs). Using a widely recognized management index developed by Bloom and Van Reenen (2007), this study provides evidence that workplace health promotion moderates the link between management practices and productivity. Our panel data estimates show that the positive impact of management practices on productivity is stronger if a firm engages in workplace health promotion. This finding fits the notion that workplace health promotion mitigates adverse side effects of management practices on employees' health. However, our estimates also provide evidence of a negative direct influence of workplace promotion on productivity. The positive moderating influence of workplace health promotion only dominates the negative direct influence if a firm uses Bloom and Van Reenen's management practices (targets, monitoring and incentives) at a high intensity.

Keywords: Targets; Monitoring; Incentives; Employee Health; Workplace Wellness Programs; Firm Performance (search for similar items in EconPapers)
JEL-codes: I10 J24 J28 J81 M50 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1643

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