When the well-being of the staff is transformed into value for the organization

Does corporate wellness really work?

Benefits related to organizational well-being (otherwise known as welfare) have become an important tool to help businesses maximize their profits.
Some of the results obtained are: reduced turnover, increased productivity and fewer accidents at work. Do you know how useful it is to invest in staff health?

Many HR professionals are unable to measure returns from investments in staff welfare and, as a result, do not implement a company-wide strategy – even if they realize how important it is for business success.
In a study by Reward magazine about corporate benefits, the majority (88%) of HR professionals believe that staff welfare is “important or very important” for the success of the business; however, only half of them have a strategy to improve organizational well-being.

Why focus on organizational well-being?

There are many reasons why employers should focus on the well-being of their staff.
The World Health Organization has drawn up a list of benefits deriving from the promotion of health at work, for example with involvement decreasing the stress of related work, both for managers and for employees. (Working papers Olimpus, Valentina Pasquarella, Work-related stress discipline between European and national sources: limits and critical issues)

The most important benefits for organizations and employees are:

• Improvement of the public image
• Improvement of staff morale
• Reduction of the turnover rate
• Reduction of the absenteeism rate
• Increase of productivity
• Improved self-esteem

Wellness initiatives: health at work

Wellness initiatives can be implemented on the basis of business objectives, such as increased productivity, or flexible benefits or staff feedback.
When initiatives are driven by staff feedback, they can be more encouraging to achieve corporate wellness.

Health and well-being at work

Health at work is often focused on safety but should also be concerned with employee well-being.
A 2014 report by the British Safety Council can be useful for calculating ROI on investments in occupational health.
The study calculated that the cost of accidents, injuries and illnesses on the British economy between 2011 and 2012 is £ 13.8 billion; of which £ 8.4bn represents work-related illnesses.

Some organizations have shown a significant return on investment, with returns 12 times higher than the initial investment.
The report concluded that investing in the safety and health of personnel, including through the reduction of work-related stress, can:

• Reduce the absence of illness and injury rates
• Increase productivity
• Improve an organization’s reputation

How is the ROI calculated?

Let’s start from some data: in the European Union the stress condition affects about 22% of workers, while in Italy we are at 27% with a clear criticality compared to other European countries. According to the European Agency for Occupational Safety and Health, pathological depression – understood as the main consequence of conditions of related work stress – will soon become the leading cause of sick leave in Europe. (link)

According to the National Institute for Clinical Excellence, employees with stressors cost the employers a million pounds a year.
For a company with 1,000 employees, the cost exceeds £ 835,000. By identifying and preventing these issues, companies could save over £ 250,000 a year.

ROI for Human Resources: how to measure the results of HR actions?

Conclusions

There is no doubt that the focus on employee welfare brings advantages to companies.
The key to ensuring the success of benefits related to employee well-being is through regular communication on the value of what is being offered.
Finally, well-being should be part of a broader cultural change that fosters a series of initiatives to promote a healthy lifestyle for staff within the work environment.

How to improve the results of wellbeing programs. 5 suggestions:

1. It can be difficult to quantify results from corporate wellness programs, but it is important to remember that feedback from qualitative data is equally useful
2. Determine the results to be obtained from the wellbeing program
3. Before implementing welfare programs, analyze the current situation; this helps companies evaluate their effectiveness
4. A cultural change towards a corporate wellness policy requires time, perseverance and patience to emerge and be appreciated
5. Do not consider only the financial results but also the indirect ones connected to the improvement of the working climate.

Want to see Ricardo Semler’s video Ted to understand how he revolutionized the company he works in?