Businesses often look at investments in terms of tangible returns, or ROI. However, measuring corporate wellness with the same yardstick might be a mistake. Any debate of whether corporate wellness initiatives have any real ROI has been put to rest with a multitude of studies and statistics over the years.
The most recent one, a report by ‘Safe Work Australia’ reveals that 92% of the claims over serious work-related mental health problems, were attributed to mental stress. Guess what the compensation paid to workers for work-related mental health problems was? $543 million!
That’s an eye opener as good as any. But if budget-oriented businesses do not want to settle for anything less than quantifiable metrics to measure ROI, then here are four of them.
#1 – Employee Engagement
An unengaged workforce is more likely to be emotionally and cognitively detached with their work, which will affect their productivity and hence, your bottom line. A study conducted by Gallup, an American advisory and analytics company reveals that a highly engaged workforce, on the other hand, can help you boost your profits by up to 21%.
Hence most successful organizations today consider employee engagement as one of their key business strategies. How do you measure engagement though?
Set clear expectations, provide your employees with the means to maximize their potential and skills, encourage ongoing communication and identify and be mindful of your employee’s emotions. At the end of the day, there should be a marked improvement in employee productivity, customer outcome, and annual turnover, which are measurable markers.
#2 – Absenteeism
Workplace wellness programs, such as the ones offered by Happy Melon in Australia, are directly connected to reduced employee absenteeism. There are not one, but over 50 studies and research papers that have established this correlation. Here are some of the obvious benefits of such a program:
- Better physical health
- Reduced stress levels
- Reduced levels of blood pressure, manageable blood glucose levels and lipids
- They are less likely to be obese
The ROI on every dollar spent on employee wellness can be as high as $2.73.
#3 – Productivity
There’s been a lot of focus on the costs associated with poor employee health. But what often goes undetected is the cost associated with poor productivity, where the employee may be physically present at the workplace, but is not as productive as they should be.
This is called presenteeism and it is estimated that the costs associated with it are twice or thrice as high as direct health care costs.
- Employees experiencing depression are 131% likelier to have p
- Something as common as Neck Pain is associated with 79% of presenteeism cases.
Even brief physical activity can help prevent, or at least mitigate the effects of workplace stressors, which may contribute or even be solely responsible for presenteeism.
#4 – The Bottom Line
Let’s sum it all up.
What happens when your workforce is more engaged, less absent and more productive? It’s the business that wins. Even small businesses that focus on employee health and wellness often outperform large corporations by staggering numbers, as this study reveals.
Well, if stock prices and quantifiable metrics are what businesses understand better, then what better than a substantial uptick in the bottom line?