Employee Wellness Investment: A Strategic Move for Business Success
Employees are increasingly interested in working for companies and organizations with a positive workplace culture and emphasis on mental health and work-life balance. Similarly, many companies have come to recognize the importance of fostering wellness in the workplace as it contributes to increased employee satisfaction, productivity, and retention.
Research clearly shows that companies accrue several benefits from promoting a strong workplace culture that prioritizes employee wellness, while companies that do not prioritize wellness can incur significant costs. Despite this, some companies remain skeptical about the importance of workplace culture and are apprehensive about investing in employee wellbeing. Below, we break down the evidence around the importance of investing in wellness in the workplace.
Costs of Poor Employee Wellness
Poor employee mental health and wellness can result in both direct and indirect financial costs to companies.
Direct costs: medical expenses, workers' compensation claims, and replacement costs for employees who leave the organization due to burnout and other mental health concerns.
Indirect costs: reduced productivity, absenteeism, and presenteeism (when employees are physically present at work but are not fully engaged or productive).
Depression alone is estimated to result in approximately 200 million lost workdays each year, costing approximately $17-44 billion for employers.1,2 In Canada, the indirect cost of mental health in the workplace (absenteeism, presenteeism, lost productivity, etc.) is estimated to be over $6 billion per year.3 That said, one study found that, for every $1 spent on workplace wellness programmes, medical costs decreased by approximately $3.27 and absenteeism costs decreased by approximately $2.73.4
However, poor mental health and wellness among employees affects more than just the bottom line. Work-related stress contributes to burnout, poor concentration and decision making, human error, and decreased productivity.5 When these issues persist, they can lead to higher employee turnover, resulting in an unstable workplace culture and additional financial costs.
Benefits of Positive Employee Wellness
Investing in employee wellness has benefits for both employees and employers. By investing in and proactively addressing mental health and wellness, companies can significantly reduce costs associated with burnout and other mental health and wellness issues. Below are some of the major benefits of investing in and prioritizing a workplace culture of wellness:
Boosts Productivity and Performance.
When employees are healthy and happy, they are more likely to be engaged in their work and perform at a higher level. In fact, research shows that workplace wellness initiatives can help employees manage stress, increase job satisfaction and loyalty, and increase productivity.6,7,8
Promotes Workplace Culture and Morale.
Employee wellness initiatives can help to create a positive and supportive work environment, which contributes to employees feeling valued and appreciated. This can lead to increased employee satisfaction, improved company morale, and enhanced teamwork and collaboration.
Supports Physical and Mental Health.
Prioritizing workplace wellness initiatives can improve employee mental and physical health which can lead to significant savings for both the employee and the employer. Workplace wellness initiatives have been associated with improved health outcomes, such as reduced blood pressure, lower body mass index (BMI) and cholesterol levels.6 Additionally, in 2017, the World Health Organization (WHO) recognized workplace wellness programmes as a primary option for the prevention and control of non-communicable diseases, including mental health.9
Increases Recruitment and Retention.
In today's job market, employees are looking for more than just a paycheque; they want to work for companies with a positive culture that care about their mental health and wellness. By offering wellness initiatives and a positive work environment, companies can attract and retain top talent. When employees feel that their employer cares about their wellbeing, it leads to lower turnover rates and a more stable workforce.
The importance of cultivating a wellness-focus workplace culture is not just a fad - it helps to assure optimal performance, longevity, and retention of employees. At WellIntel Talks, we support companies and organizations in cultivating a strong workplace culture that emphasizes employee wellbeing by providing engaging and evidence-based talks on a variety of mental health and wellness topics to employees and executive teams. Our collective of qualified Speakers provide information and tools for supporting mental health, cultivating motivation, building emotional intelligence, addressing and preventing workplace burnout, and additional wellness topics that are critical for fostering a positive and healthy workplace culture. Book a talk today for your next corporate training event or lunch & learn to take the first step in addressing wellness within your workplace.
Written By:
WellIntel Talks Executive Team, MSc. in Clinical Psychology and Experimental Psychology
References:
[1] Leopold, R. S. (2001). A year in the life of a million American workers. New York, NY: MetLife Disability Group.
[2] Stewart, W. F., Ricci, J. A., Chee, E., Hahn, S. R., & Morganstein, D. (2003). Cost of lost productive work time among US workers with depression. JAMA, 289(23), 3135–3144. https://doi.org/10.1001/jama.289.23.3135
[3] Mental Health Commission of Canada. (2016). Investing in Employee Mental Health: A Strategic Approach. Retrieved from https://www.mentalhealthcommission.ca/wp-content/uploads/drupal/2016-06/Investing_in_Mental_Health_FINAL_Version_ENG.pdf
[4] Baicker, K., Cutler, D., & Song, Z. (2010). Workplace wellness programs can generate savings. Health affairs (Project Hope), 29(2), 304–311. https://doi.org/10.1377/hlthaff.2009.0626
[5] Rajgopal, T. (2010). Mental well-being at the workplace. Indian Journal of Occupational and Environmental Medicine, 14(3), 63–65. https://doi.org/10.4103/0019-5278.75691
[6] Merrill, R. M., Aldana, S. G., Garrett, J., & Ross, C. (2011). Effectiveness of a Workplace Wellness Program for Maintaining Health and Promoting Healthy Behaviors. Journal of Occupational and Environmental Medicine, 53(7), 782–787. http://www.jstor.org/stable/45009852
[7] Peñalvo, J. L., Sagastume, D., Mertens, E., Uzhova, I., Smith, J., Wu, J. H., Bishop, E., Onopa, J., Shi, P., Micha, R., & Mozaffarian, D. (2021). Effectiveness of workplace wellness programmes for dietary habits, overweight, and cardiometabolic health: A systematic review and meta-analysis. The Lancet Public Health, 6. https://doi.org/10.1016/S2468-2667(21)00140-7
[8] Cancelliere, C., Cassidy, J. D., Ammendolia, C., & Côté, P. (2011). Are workplace health promotion programs effective at improving presenteeism in workers? A systematic review and best evidence synthesis of the literature. BMC public health, 11, 395. https://doi.org/10.1186/1471-2458-11-395
[9] World Health Organization. (2017). Tackling NCDs: 'best buys' and other recommended interventions for the prevention and control of noncommunicable diseases. World Health Organization. https://apps.who.int/iris/handle/10665/259232. License: CC BY-NC-SA 3.0 IGO