Does it pay to invest in wellness programmes?
Despite the growing research showcasing the benefits of employee wellness programmes, many organisations still overlook the power of these initiatives for improving business metrics. While ‘wellness’ may sound like fluff, at Paymenow, we’ve seen firsthand how proactive, effective programmes are linked to a host of tangible benefits to a company. Here are three reasons wellness programmes are worth the investment:
1. ? ? The rising cost of doing nothing
Picture this: over 500,000 workers unable to work due to poor mental health, every single week. That's not a statistic; it's a wake-up call. A recent Deloitte Insights report highlighted this alarming trend in Canada, showing how poor mental health leads to a triple threat: absenteeism, presenteeism (attending work with reduced productivity), and increased employee turnover. The price tag? An estimated 50 billion Canadian dollars (over 650 billion rand) in direct costs, plus another CA$ 6.3 billion in indirect costs due to lost productivity.
Now here’s the most striking part. Workplace stress is the greatest contributor to poor mental health. So, by implementing workplace interventions, companies have a golden opportunity to address the root causes and potentially save their bottom line.
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2. ? ? Investments that pay off
If the above wasn’t enough, let’s talk return on investment. Research from the World Economic Forum suggests that every dollar invested in employee mental health interventions brings a return of $4 in improved health and productivity. And mental health is just one piece of the wellness puzzle. Employees can also suffer from financial stress and physical ailments, which significantly affect their work performance. By addressing these issues comprehensively, companies can see even greater returns.
There’s even more good news. Wellness programmes that lead to better employee engagement have a direct, positive impact on company bottom line. A study in Harvard Business Review found that companies with high employee engagement are 22% more profitable. And it makes sense – happier, healthier employees are more likely to go the extra mile, innovate, and contribute to a positive workplace culture. It's a virtuous cycle that benefits everyone involved.
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3. ? ? Attracting the next generation of talent
While Millennials tend to prioritise remuneration benefits, Gen-Z is taking a different approach. This new generation entering the workforce is more self-oriented and particularly inclined to support companies with holistic employee wellbeing programs. They're not just looking for a paycheck; they're choosing employers who improve their overall health and happiness.
According to Deloitte, being recognised as an organisation that creates a healthy workplace culture helps attract top talent across generations. In today's interconnected world, Millennials and Gen-Z job-seekers use social media and review sites like Glassdoor to gather information on potential employers before even considering an interview. By implementing a robust wellness programme, you're not just taking care of your current employees – you're also creating a powerful employer brand that attracts the best and brightest future talent.
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What’s next?
Investing in employee wellness is not just a feel-good initiative; it's a strategic business decision that can lead to improved productivity, increased profitability, and a more engaged workforce. In today's competitive business environment, can you afford not to prioritise employee wellness?
If this article has convinced you that your company needs a wellness programme, you might be wondering where to start. It's true that South Africa currently lacks standardised regulations around employee wellness programmes, which can make the process seem daunting. However, this absence of strict guidelines also presents an opportunity for innovation and customisation.
In our next newsletter, we'll dive deeper into the science behind the best wellness programmes, providing you with actionable insights to help you design and implement an effective strategy. We'll explore evidence-based practices, discuss how to measure the success of your initiatives, and share how to transform workplace culture through wellness programmes.
Further reading:
CHRO South Africa: There’s a growing realisation that companies need to understand staff holistically
Harvard Business Review: Employee Engagement Does More than Boost Productivity