The ROI of employee wellness
Every aspect of an employee’s physical, mental and financial health can determine how effective they are at work. If an employee feels under the weather, they are naturally going to be less productive. By giving an employee sick days, you help them get better faster so that they can get back to work.
In addition to allowing employees to rest when needed, you must take preventative measures. You must protect your employees from health issues. Instead of just offering sick days and health insurance, you can boost your employees’ productivity through other wellness programs as well.
Employee wellness programs offer an excellent return on investment (ROI). Many companies today have options like health insurance, snacks in the break room, and on-site gyms. Even when you cannot see all of the losses from poor employee health, they are there.
By protecting your employees, you are also protecting your bottom line. If you’re still not confident that you should invest in your employees’ wellness, let’s go over some other facts:
Healthy Employees Are More Productive
It turns out that healthy employees are also more productive employees. Obesity alone leads to an estimated $506 per year in productivity loss per employee. High stress can cause similar problems and lead to $1,729 per year in costs per employee.
When employees show up and are feeling better, they get more done on a day-to-day basis. They are more willing to be at work and more focused on what they are doing. When employees are more productive, they do more than just cut labor or healthcare costs. They also lead to a better return for all of the company’s investments.
Wellness Benefits Attract the Best Talent
In 2018, corporate wellness programs were an almost $8 billion industry. By 2021, this industry is expected to grow another 7.8%. This is, in part, because younger workers place a priority on their overall well-being.
Millennials focus on having experiences more than older workers do. The same focus on experiences over materialism extends to wellness-related matters. Because of this, top firms like Google offer perks like on-site gyms, cooking classes, massage therapists, parental leave and other benefits. These benefits help companies compete for workers who care about their health and well-being.
Fortunately, employers can easily incorporate a number of wellness ideas into the workplace. Companies can offer employees gym memberships, health insurance, paid leave and telecommuting options. In addition, companies can also consider things like employee lunches, sports tournaments, staff recognition days, and daycare services.
Unhealthy Employees Cost the Company Money
If you are not interested in boosting revenue by caring for your employees, you should at least be concerned about losing money. Unhealthy employees cost more than the price of paid sick days. They also spend less time on company-related matters. When an employee suffers from a sore throat or a migraine, they cannot focus all of their attention on running your business.
There is an obvious connection between health and productivity. If someone is in too much pain to think, they will not be able to focus on data entry or talking to customers. Likewise, an employee cannot load a shipment if they have an untreated broken arm.
Researchers know that lost productivity costs employers about $1,600 or more per year. overall, stress-related problems cost the workplace in general about $300 billion each year. By promoting healthy lifestyles and alleviating job pressure, employers can actually reduce their overall expenses.
Lifestyle employers believe that employee experience is the foundation of a successful, productive workplace. These wellness programs build the company’s brand in the mind of employees as well as consumers. As a result of these programs and values, the employer is actually able to create intrinsic motivation within the mind of the employee.
Healthy Employees Stay Longer
Employers cannot afford to have high turnover rates. Often, training expenses cost more than the employee’s salary for the first few months of employment. When a new employee quits right after their training is finished, the company has to pay all of those costs all over again.
In addition, they have to pay recruitment costs for the new employee. If the turnover rate is too high, it can also lead to morale problems for the employees who remain.
When a company values having a work-life balance and offers a healthy atmosphere, employees want to stay longer. This means that the average turnover rate falls. As a result, the company spends less on training and recruitment.
Replacing an employee in the first year can cost as much as 33 percent of their annual salary. For employees who earn more than $100,000 a year, replacement costs are as high as 213% of their annual salary.
Your Company’s Success Depend on Your Employees’ Wellness
While a company is an individual entity according to the law, real companies are made up of actual, living individuals. Your success hinges on the work these real people do for your company.
If you do not take care of your people, they will be unable to care for your business. By offering wellness programs, you can reduce healthcare costs, improve productivity, and decrease absenteeism.