Employee wellbeing programmes have evolved to the point that they are no longer considered a ‘nice to have’ consideration, but relevant to businesses’ overall performance as well as improving employees’ quality of life. Business results show that employee wellbeing can be a fundamental element in fulfilling multiple business goals. In 2022, McKinsey & Co advised that “businesses should treat well-being as a tangible skill, a critical business input, and a measurable outcome.” In 2023, the Financial Times reported on a study by researchers at Oxford University and Harvard University “that shows the clearest link yet between staff wellbeing and financial performance.”
So how can employee wellbeing strategies contribute to delivering on business objectives?
- Employee wellbeing focuses on employee health, which directly impacts productivity. Investment in a wellbeing strategy can therefore deliver a clear return on investment. In its post-pandemic research into mental health and employers, Deloitte reported that the ROI on mental health support can be as high as 5:1.
- Diversity, equality and inclusion objectives can also be delivered through a benefits and wellbeing strategy that delivers focused benefits. This can include policies such as fertility support, tailored benefits such as childcare vouchers and flexibility for working parents, and mental health policies that support minority groups. Employers that invest in DE&I create work environments that are more safe, secure and comfortable, demonstrating investment in employees and leading to improved productivity.
- Reducing absence costs can be a key component in cost control. Absence costs have been increasing as we face rising cases of mental illness, the NHS struggles to deliver timely treatment, and employer solutions are relied upon more heavily – such as private medical insurance provision. The Office of National Statistics reports that the sickness absence rate in the UK in 2022 rose to 2.6%, with the number of working days lost due to sickness or injury estimated at 5.7 days per employee. Employers face associated costs of absence, such as recruitment for additional employees or the impact of the additional workload being spread across the rest of the team.
- Business culture changes can be supported by a wellbeing strategy that shifts focus to the employee value proposition, shifting the dial on employees’ perceptions during potentially challenging transition periods. A positive company culture championed by senior leaders is easier to achieve when employees are happy and healthy.
- Employee attraction and retention was magnified after the post-Covid ‘great resignation,’ meaning that employees now want to better understand how their employer can support their health and wellbeing needs. According to Buck’s Data and Technology Research 2023, in partnership with REBA, 70% of employers believed that they could improving their employee value proposition with improved insights into their benefits. Forbes reports that 87% of professionals now consider health and wellbeing packages when choosing employers.
By appreciating the direct link between employee wellbeing and employee productivity, attraction and retention, employers can better support their business goals. Now more than ever, with platforms providing improved insights to inform decision-making, employers can see how different and tailored benefits support their employees’ wellbeing, leading to an improved employee value proposition and ultimately, better performance.