Lincoln International’s experts analyze how occupational medicine and absence management are increasingly important in corporate health promotion.

Demographic shifts, the growing shortage of skilled workers and increasing rates of psychological stress in the workplace all highlight the importance of the systematic promotion of health and wellness in the workplace. Companies are tasked with not only complying with legal requirements but also creating employee management strategies that ensure long-term employee retention and reduce absences. In addition to the impact on corporate strategy, the overall economic costs cannot be ignored. The loss of gross value added due to workplace absenteeism was estimated to be more than €200 billion per year in Germany.  

Occupational health management has changed significantly in recent years. The simple days of a corporate doctor and an afternoon training in proper lifting techniques are long gone. Today, prevention and health promotion in the workplace start much earlier and focus on:  

• Risk assessments in accordance with occupational health and safety legislation to identify physical, chemical and psychological stressors 

• Early detection of health risks and advice on appropriate preventive measures 

• Advising employers on workplace design, working time models and the organization of healthy working conditions 

All measures, concepts and strategies not only contribute to the fulfillment of legal obligations but also have a preventive effect and promote a sustainable human resources strategy, which is a fundamental component of future corporate success. 

Time has not stood still in absence management, either. Today, it goes far beyond simply recording sick notes and absences. Absences of all kinds are systematically analyzed and processed, and causes are identified in order to develop and initiate appropriate countermeasures. A particular focus is analyzing patterns and developments, including in relation to departments, workplaces or peak workloads. The results can then be integrated into occupational health management and translated into preventive measures. 

In this way, absence management becomes a central instrument of active corporate management that links economic and health objectives. For employees, the processes outlined above also mean greater health security, reliable support in the event of illness and an overall more positive perception of the employer.  

Technological and service-related support for companies is available, but the German market is highly fragmented. There are few supraregional and regional providers (such as clinics, testing companies, occupational health providers, or niche providers) that can offer a wide range of suitable solutions. It is only logical that mergers and acquisitions in the industry are on the rise across Europe and North America. Financial investors are predominantly driving the trend with a focus on the consolidation of platforms and technology-based healthcare providers. Investors concentrate on high-growth, technology-based companies with specific characteristics including platform integrity and management structures. 

A recent German example is the sale of Arsipa, a leading OHS group in the DACH region, to Warburg Pincus. Arsipa has a first-class operating platform with a strong track record and comprehensive expertise.   

We expect a large number of significant M&A transactions will occur in coming quarters, which will specifically professionalize occupational medicine and absence management. This trend is crucial to systematically promote long-term health and wellness in the interests of all employees and companies.