Investing in employee wellbeing: The business case
Employee wellbeing is a key factor in determining an organization’s performance. The poorer their wellbeing, the worse the company performs. Since there is a direct correlation between the two, it is essential to maintain and improve wellbeing levels of employees.
Many organizations have taken the initiative to implement employee wellbeing programs. This can help employees improve their wellbeing and unlock their highest potential. Furthermore, institutionalizing employee wellbeing programs fosters an inclusive and positive environment promoting their overall wellbeing. Hence, investing in employee wellbeing programs can prove to be extremely beneficial for the company as a whole, yielding high returns.
Understanding the ROI of workplace wellness initiatives
The return on investment of workplace wellness initiatives can be observed in both tangible and intangible means. ROI, in the context of employee wellbeing, can be tracked in the metrics that contribute to overall company performance. Here are a few tangible and intangible benefits companies can yield when investing in employee wellbeing initiatives:
- Healthcare cost savings: Employee wellbeing not only works to improve current mental and physical wellbeing, but also to prevent deteriorating into worse conditions. This can save huge amounts in healthcare costs for employees and the company.
- Reduced sick days: Since employee wellbeing programs are focused on maintaining healthy lifestyles, the chances of sickness are reduced. This will be directly reflected in the number of days taken off in account of sickness which is easily traceable by organizations.
- Improved employee satisfaction: Implementing effective wellbeing programs within the organization can significantly improve employee satisfaction. This is a key metric to creating and recruiting a top-notch workforce.
- Reduced cost of recruitment: Due to the employee wellness initiatives, there is a boost in employee satisfaction causing higher employee and talent retention. This reduces costs of recruitment heavily, as the workforce is flourishing and employees wish to stay with the team.
All of these metrics greatly contribute to the overall success of the company. The surplus budget and savings allow management to reallocate funds to newer improved initiatives taking one step at a time. In the long game, this will be extremely beneficial for the business trajectory.
Key components of workplace wellness initiatives
An employee wellness program should be all-encompassing of healthy lifestyles. This includes physical, mental, and financial health while also learning healthy patterns to improve living conditions. It can be challenging to ensure that wellness initiatives encompass all of these forms of health. This is why we have created a list of key components in workplace wellness initiatives:
Gym memberships: Providing free and accessible gym memberships can promote physical and mental wellbeing within the workforce. Exercising regularly has shown multiple benefits. Many employees are discouraged from joining gyms as the membership fees can be hefty making it a burden on them. Hence, providing memberships can get rid of this hurdle.
Mental health support: Mental health aid comes with plenty of stigma, even today. Providing mental health support within the employee wellness program displays openness on the topic. This is vital as it can get rid of the stigma surrounding mental health support. Furthermore, mental health support can be costly. Integrating mental health support will promote mental health within the workforce.
ACTS is one such employee mental wellbeing program offered by ManahWellness. This program assesses and provides content and tools while developing skills that can improve overall wellbeing. They provide wellbeing reports and access to mental health professionals 24/7.
Financial literacy programs: The growing economy has been volatile making financial health extremely important. Financial health tends to be the foundation of wellbeing in modern times. Yet, there are very few initiatives and resources to learn financial literacy. Initiatives of financial wellness programs will help employees make more informed decisions leading to better outcomes.
Healthy work-life balance: The wellness program should advocate for healthy work-life balance in employee’s lives. This is essential when it comes to mental and physical wellbeing. Having a healthy work-life balance can prevent burnout and mental exhaustion while improving employee satisfaction and productivity.
Measuring ROI in workplace wellness programs
Measuring the return on investment of workplace wellness programs is crucial, allowing us to measure the impact of the program. Tracking the ROI can allow employers to assess and identify gaps in the wellness programs integrated. There are two methods of collecting data on the ROI of these programs:
Quantitative metrics: There will be a significant impact on budget savings after a few months of implementing effective wellness programs. Collect data on healthcare costs, absenteeism rates, and turnover rates over the past and compare it to current data. Typically, there is an observed reduction in spending with employees actively participating and performing tasks.
Qualitative metrics: Employers should begin implementing tools to track employee satisfaction, productivity, and engagement levels. There are multiple wellness tools available in the market today to make the job easy for management.
Manahverse is an A.I.-powered app, focused on improving employee wellbeing. It is free of cost and provides multiple useful features that promote mental wellbeing. It also helps track the wellbeing journey of employees allowing employers to ensure their wellness programs are effective.
Conclusion
Investing in workplace wellness can introduce employees to healthy lifestyles. This will improve their living conditions, contribute to overall wellness, and boost company performance as well. Adding to this, there are numerous returns on investment earned from these wellness programs helping employees achieve their maximum potential.
FAQs
1. How can organizations determine the effectiveness of their workplace wellness programs?
A: Measuring the return on investment and collecting information through anonymous surveys are a few ways to determine the effectiveness of their workplace wellness programs.
2. What are some key metrics that companies can use to measure the ROI of their wellness initiatives?
A: Companies can look at quantitative and qualitative data to measure the ROI of their wellness programs. Some of these can include- overall savings, productivity, employee retention, and more.
3. How can organizations ensure that their workplace wellness programs are tailored to meet the diverse needs of their workforce?
A: Collecting regular feedback through anonymous surveys are good way to address the diverse needs of the workforce. This information is vital to make the changes required to effectively implement wellness programs.