Workplace Health Management (BGM) – Definition, Measures & Practical Tips

Workplace Health Management (in German: Betriebliches Gesundheitsmanagement, or BGM) encompasses all systematic measures through which organisations promote and maintain the long-term health of their employees – from ergonomic workstations to burnout prevention. While BGM is not fully mandated by law, it operates within the framework of Germany's Occupational Health and Safety Act (ArbSchG) and §20 SGB V, and benefits from tax incentives. Well-implemented BGM demonstrably reduces absenteeism, strengthens employer attractiveness and delivers a positive ROI.

What Is Workplace Health Management?

Workplace Health Management is the strategic framework within which organisations systematically promote the physical, mental and social health of their employees. It is not about individual fitness classes or a fruit bowl in the break room – it is a holistic approach that encompasses analysis, planning, implementation and performance evaluation.

At its core lies the conviction that healthy employees are more productive, more motivated and less frequently absent over the long term. According to the Fehlzeiten-Report 2023 (Absenteeism Report) published by the Scientific Institute of the AOK (WIdO), sick leave in Germany reached a record high – a clear signal that reactive management is not enough. BGM approaches health proactively and systematically.

BGM, BGF and BEM: What Is the Difference?

Three terms come up regularly in the context of employee health – and are frequently confused with one another:

BGM is the umbrella term: it encompasses strategy, structures and all sub-areas – including BGF and BEM.

BGF (Occupational Health Promotion) is a component of BGM and refers to concrete offerings available to all employees: sports and exercise programmes, nutritional counselling, stress management courses. German statutory health insurers subsidise BGF measures under §20 SGB V by up to 500 euros per employee per year.

BEM (Return-to-Work Management) is legally mandatory under §167 SGB IX: as soon as employees have been unable to work for more than six weeks within a single calendar year – whether continuously or intermittently – the employer must initiate a BEM conversation and work collaboratively on a plan for returning to work.

Legal Framework

BGM as an overall strategy is not legally required. However, there are several legal frameworks that HR professionals should be aware of:

Occupational Health and Safety Act (ArbSchG) – Mandatory

Germany's Occupational Health and Safety Act requires employers to systematically assess and minimise workplace hazards. Since 2013, this explicitly includes psychological stressors – such as stress, work intensification or interpersonal conflict. The risk assessment is therefore a statutory entry point for any BGM concept.

§20 SGB V – Occupational Health Promotion (Voluntary, but Subsidisable)

§20 SGB V obligates statutory health insurers to provide funding for prevention and occupational health promotion. Companies can receive subsidies for BGF measures through their company health insurance fund or statutory health insurer. The GKV Prevention Guidelines define eligible areas of action (as of 2023).

§167 SGB IX – BEM (Mandatory)

Once the six-week threshold is reached, the employer must initiate a BEM process. This is not a discretionary measure but a legal obligation. Employers who fail to offer BEM risk disadvantages in employment protection proceedings.

§3 No. 34 EStG – Tax Exemption

Employers can provide health-related benefits to their employees tax-free up to 600 euros per person per year (§3 No. 34 EStG). This significantly reduces the net cost of BGM investments.

Goals and Benefits of Workplace Health Management

For Employees

Well-implemented BGM noticeably improves working conditions: less noise, more ergonomic workstations, greater flexibility in how work is organised. Employees who receive support during stressful periods, personal crises or health difficulties feel valued – and are more likely to remain loyal to the organisation over the long term.

For Organisations

The business case is measurable: according to iga.Report 40 by the Initiative Health and Work (Initiative Gesundheit und Arbeit), every euro invested in workplace prevention yields an average return of 2.70 euros – through reduced absenteeism, higher productivity and lower staff turnover.

BGM as an Employer Branding Factor

In the competition for skilled professionals, BGM has long become a differentiating factor. Actively investing in health signals: this organisation takes its employees seriously. That message resonates – not just internally, but also externally in the talent market. A modern, respectful working environment begins as early as the recruiting process: fair, transparent selection procedures and a positive candidate experience form the first impression prospective employees gain of an organisation.

BGM Measures: Practical Examples

BGM measures can be divided into two broad categories:

Environmental Prevention: Improving Working Conditions

Environmental prevention targets structures and framework conditions – independent of the behaviour of individual employees:

• Ergonomic office equipment (height-adjustable desks, lighting, noise protection)
• Flexible working time models (flexitime, remote work, part-time arrangements)
• Healthy canteen and catering options
• Optimisation of shift schedules to reduce peak workload periods

Behavioural Prevention: Offerings for Employees

Behavioural prevention addresses individual health behaviour:

• Exercise and sports programmes (corporate sports, gym partnerships)
• Nutritional counselling and courses
• Stress management workshops and mindfulness training
• Addiction prevention and cessation programmes

Mental Health and Stress Prevention

Mental health conditions are among the most common causes of extended absences, according to the Fehlzeiten-Report. Concrete measures include:

• Employee Assistance Programmes (EAP): External, confidential counselling services for employees experiencing personal or professional crises – often accessible by phone or chat.
• Leadership training on healthy management (burnout prevention starts at the management level)
• Anonymised employee surveys to assess psychological stressors
• Structured corporate burnout prevention programmes

Implementing BGM: A Step-by-Step Guide

For small and medium-sized enterprises (SMEs) in particular, introducing BGM can seem complex. In reality, a functional BGM concept is achievable even without a large budget:

Step 1: Define Responsibilities - Identify who will coordinate BGM – whether an internal steering group, a dedicated BGM officer or an external consultant.

Step 2: Conduct a Status Quo Analysis - Analyse absenteeism rates, run an anonymous employee survey and build on the risk assessment already required by law.

Step 3: Set Measurable Goals - Define concrete targets – for example: "Reduce absenteeism by 10% within two years" or "Increase participation in BGF offerings to 40%."

Step 4: Plan and Budget Measures - Prioritise measures by effectiveness and cost. Make use of statutory health insurer subsidies under §20 SGB V and the tax-free health benefit under §3 No. 34 EStG.

Step 5: Implement and Evaluate - Roll out measures, communicate actively and measure results on a regular basis. BGM is not a one-off project – it is an ongoing process.

Frequently Asked Questions about Workplace Health Management

What is the difference between BGM and BGF?

BGM is the overarching strategic framework that encompasses all health-related activities within an organisation – analysis, management, implementation and monitoring. BGF (Occupational Health Promotion) is a subset of this and refers to concrete offerings available to all employees, which can be subsidised by statutory health insurers under §20 SGB V. In short: BGF is one instrument within the broader BGM framework.

Is Workplace Health Management legally mandatory?

BGM as an overall strategy is not legally required. However, Germany's Occupational Health and Safety Act (ArbSchG) mandates risk assessments – including for psychological stressors. Return-to-Work Management (BEM) is mandatory under §167 SGB IX as soon as employees have been unable to work for more than six weeks within a calendar year.

What measures does BGM include?

BGM covers a broad spectrum: environmental prevention (ergonomics, shift planning, noise reduction), behavioural prevention (fitness classes, nutritional counselling, stress management), mental health offerings (EAPs, management training) and the legally mandated BEM process. The selection of measures should be based on a prior needs analysis.

What does BGM cost, and what ROI does it generate?

Costs vary significantly – from a few hundred to several thousand euros per employee per year. According to iga.Report 40 (Initiative Health and Work, 2020), every euro invested in workplace prevention generates a return of 2.70 euros through reduced absenteeism and higher productivity. Statutory health insurer subsidies under §20 SGB V and the tax exemption under §3 No. 34 EStG (up to 600 euros per employee per year) further reduce the net outlay.

How do I introduce BGM in my organisation?

The process works in five steps: define responsibilities, conduct a status quo analysis (absenteeism data, employee survey, risk assessment), set measurable goals, plan and budget measures, then implement and evaluate regularly. Statutory health insurers often provide free advisory services for BGF funding.

How do I measure the success of BGM?

Relevant metrics include: absenteeism rate (target: declining), presenteeism rate (employees working while unwell), employee satisfaction from regular surveys, staff turnover rate and participation rates in BGM offerings. Presenteeism – showing up for work despite illness – is often more costly than absenteeism, because error rates and the risk of contagion increase.

What is presenteeism?

Presenteeism refers to the phenomenon of employees attending work despite being ill. Research shows that the resulting productivity losses frequently exceed the direct costs of absenteeism. BGM addresses presenteeism by fostering an open organisational culture in which being sick carries no stigma.

Conclusion

Workplace Health Management is far more than a wellbeing trend – it is a strategic investment in the performance and satisfaction of your workforce. Organisations that implement BGM systematically reduce absenteeism, lower costs and position themselves as attractive employers.

Getting started does not require perfection: even a solid status quo analysis and two well-chosen BGF measures can generate rapid results – subsidised by health insurers and supported by tax incentives.

Are you also looking to embed fairness and employee-centricity into your recruiting process? The Aivy platform helps HR teams select talent objectively and on a scientifically validated basis – for a hiring process that takes equal opportunity seriously. Learn more about fair talent assessment with Aivy.

Sources

• §20 SGB V – Prevention and Self-Help. Federal Ministry of Justice, Germany, 2023. https://www.gesetze-im-internet.de/sgb_5/__20.html
• Occupational Health and Safety Act (ArbSchG). Federal Ministry of Justice, Germany, 2023. https://www.gesetze-im-internet.de/arbschg/
• §167 SGB IX – Prevention. Federal Ministry of Justice, Germany, 2023. https://www.gesetze-im-internet.de/sgb_9/__167.html
• Fehlzeiten-Report 2023 (Absenteeism Report). Scientific Institute of the AOK (WIdO), 2023. https://www.wido.de/publikationen-produkte/buchreihen/fehlzeiten-report/
• iga.Report 40: Effectiveness and Value of Workplace Prevention. Initiative Health and Work (iga), 2020. https://www.iga-info.de/veroeffentlichungen/igareporte/igareport-40/
• GKV Prevention Guidelines 2023. GKV-Spitzenverband (National Association of Statutory Health Insurers), 2023. https://www.gkv-spitzenverband.de
• Workplace Health Management Topic Page. Initiative New Quality of Work (INQA), 2023. https://www.inqa.de/DE/handeln/betriebliches-gesundheitsmanagement/