Employee Wellbeing is directly linked to Company Performance

??Wellness is no longer “nice to have” in the workplace, it’s a must.

Research already found that wellness benefits are the second-most important factor for employees considering a new job - after salary. Business leaders and human resource representatives often overestimate the impact of their current wellbeing efforts and about one in five HR leaders say they can’t measure the return of their wellness initiative.?

The vast majority of companies that measure the impact of their wellness program say it is very important or extremely important for employee acquisition (78%), satisfaction (88%), and retention (79%). Organizations need happy, engaged, healthy workers in order to thrive and Companies that provide the right employee benefits and wellbeing supports are more likely to turn a higher profit, according to a new interesting research called "The Return on Wellbeing Study", published by Gympass in partnership with the polling agency QuestionPro - using data from a total of 2,078 human resource directors, managers, vice presidents, and chief-level leaders across 9 countries.

?Impact of Wellness Program on ROI

Researchers found that 90% of the companies that measure their wellness program’s return on investment see a positive return and 100% of HR leaders surveyed said wellness programs are important to employee satisfaction, and 85% report decreased utilization of sick days.

?? These results were consistent around the world for businesses large and small.

?Hard to calculate ROI of Wellness Program?

About one in five HR leaders in this research say they can’t measure the return of their wellness initiative.

So Gympass researchers developed a straightforward formula that companies can use to quantify their return: To put it simply, researchers add up the productivity increases, and savings from talent management and healthcare and then subtract the costs of the wellness program.

Researchers suggest to use following KPIs for each section:

?? For Productivity increases :

Revenue per employee, Profit per employee. Also known as net income per employee (NIPE), Sick leave or health-related absenteeism, Fatigue-related injuries, Workplace accidents,

?? For Talent Management savings:

Candidate pipeline, Time to hire, Turnover rate, Cost to hire, Retention rate

??For Healthcare Savings:

Annual medical costs for the company and per employee, Costs per diagnosis code, Costs per procedure code, Place of service, Health risk assessments, Participation in preventative healthcare programs, Participation in behavior-change programs

?? For Wellness program costs:

Program enrollment , Remote office support, Administration expenditures, Rewards and incentives, Staff costs outside of HR, Ongoing expenses

?Employee Satisfaction & Productivity

Researchers noticed that over half of companies with a positive ROI from their wellness program offer some form of mental wellness support and flexible work arrangements.

Happy employees are the most productive members of the workforce, with research showing satisfied departments produce a 23% higher profit than those that are miserable.

Gympass researchers found that 98% of HR leaders saw an improvement in employee satisfaction after rolling out a wellness program, with 63% noting it had a very positive or extremely positive impact.

?Healthy employees are also less likely to call in sick.

Researchers found that wellness programs also boost output by keeping employees healthy, allowing them to do better work with fewer interruptions. Employees are 20% less productive when they work while sick.

?The paradox of Wellbeing support HR VS Employees

Researchers noticed that a gap exists between human resources departments and the general workforce. Indeed, 38% of HR leaders say their company offers physical wellbeing support, while a mere 17% of employees agree. And despite these ongoing efforts, nearly half of the workers surveyed in Gympass’ Work-Life Wellness Report said their wellbeing declined in 2022.

?? The need for improved work-life wellness is crystal clear.

?Talent management savings

85% of HR Leaders said that wellness programs make the process of acquiring new talent to retaining staffers to offboarding team members more affordable and easier produced and so their initiative produced talent management savings and believed that their program is important for employee acquisition, satisfaction, and retention.

Researchers found that nearly half of HR leaders say their wellness program reduced costs in the subsequent stages of employee engagement and retention. Researchers noticed that even a wellness program focused on one aspect of wellbeing has been shown to produce savings across industries.

A wellness program can draw in new talent faster (reducing cost-to-hire) while simultaneously proving to current employees they are cared for (reducing expensive turnover).

?? On top of generating savings, HR leaders say wellness programs better enable them to meet employee needs throughout the talent lifecycle.

Thank you ?? Gympass ??researchers team for these insightful findings:

Lívia de Bastos Martini Cesar Carvalho (he/his)

Dave Ulrich ?George Kemish LLM MCMI MIC ??

#futureofwork ?#peopleanalytics ?#healthcare #wellbeing