The Impact of Employee Wellness on Your Bottom Line
The month of May has a common theme: wellness. With the winter months finally behind us, individuals are focusing on both physical and mental wellness for themselves and their families. The corporate world is jumping on board too. As you browse your favorite news platform, you’ll likely see article topics related to attracting top talent through employee wellness, engaging employees through wellness initiatives, and the like.
So, what’s with all the buzz? How does employee wellness ultimately impact your organization’s profitability? Good question.
Let’s lay out the statistics:
1. Employee wellness is directly linked with engagement and productivity, and organizations with ‘highly engaged workforces outperform their peers by 147% earnings per share’ (Gallup).
First things first: Companies who have a strategy around employee engagement understand the importance of employee wellness. They have programs in place to ensure that their workforce can maintain both physical and mental health, reducing sick days, increasing productivity, and – most importantly – fostering a culture where employees feel appreciated and are eager to be engaged.
“The connection between engagement and performance is well-established. Engaged teams have been shown to outperform competitors in categories like productivity, profit, and employee retention” (Forbes). And, this outperformance has a direct positive impact on your organization’s bottom line.
2. The ROI for employee wellness is $1.50 for every dollar spent (Forbes).
That’s right. For every dollar that your organization invests in employee wellness, you can expect to see $1.50 in return. Furthermore, “employers who invested in health and wellness initiatives saw $6in healthcare savings for every dollar invested” (Forbes).
Whether you’re a mid-sized organization or a large, multinational corporation, there is always a budget that we’re held accountable to. If you’ve suggested employee wellness initiatives before, you likely have been questioned about the return; how these initiatives will impact the budget. The amount of savings in healthcare, increase in productivity, and overall ROI makes it well worth pursuing.
3. 31 percent of surveyed respondents in a recent study “rated mental illness as the number one reason for loss of productivity” (Entrepreneur).
Employee wellness goes beyond fitness-related competitions and healthier snacks in the vending machines; mental and emotional wellness has actually been proven to be the biggest opportunity for enhancing workplace productivity.
“One in four adults is experiencing some type of mental illness” (Entrepreneur), and poor employee productivity – aka when an employee shows up to work but isn’t really there – is directly linked to these illnesses. In addition, when someone’s mental health declines, their physical health usually deteriorates as well, leading to more sick days and – you guessed it – an additional loss in productivity.
In our next blog post, we’ll discuss employee wellness ideas that actually work to directly improve productivity and enhance employee engagement. Until then, we’d love to connect with you to learn more about your business and how our internal communications platform can work to support your employee wellness and engagement initiatives!