It may come as a surprise to some businesses and organizations, but companies that adopt employee well-being and invest in employee safety as a broad business strategy can uncover substantial ROI. This is done by helping employees make their lives better, according to Forbes. In other words, by approaching employee health as a strategic business investment, employers can generate ROI.
Below are several ways to do so, outlined by Forbes.
Reduce Employee Turnover
Employee turnover can be a huge expense for businesses. According to Gallup, employee turnover in the United States costs employers over $1 Trillion yearly. When companies lose an employee, replacing them can cost between 33% and 150% of their annual salary depending on both skillset and seniority, as per Forbes. Losing tenured workers also impacts organization operations, damages company morale, and can make businesses less competitive in their market if they’re losing experienced employees.
Forbes explains that there is an indisputable link between employee well-being and low turnover, especially when you consider Mercer’s 2017 National Survey of Employer-Sponsored Health Plan. This survey tells us that employers who make an effort to create a culture of health see 11% lower turnover rate when compared to employers who do little to make employee well-being a priority.
This Gallup Study found that managers have a large impact on their employee morale and retention through the following perceptions:
- Their bosses don’t care about them
- Their opinions don’t count
- Their development is not encouraged
- Their job lacks purpose and recognition
- They see few growth opportunities
Ensuring managers understand the above and make a conscious effort to prioritize employee well-being is a great way to lessen employee turnover.
Boost Employee Engagement
According to Forbes, engaged employees “are the gold standard for business success.” This is because happy employees bring their best selves to work, go above and beyond what’s required, and are committed to the work they do. A Limeade report states that workers with high well-being are almost twice as likely to be engaged and enjoy their work.
By taking a look at well-being initiatives to boost employee engagement your company can increase ROI. A Gallup report tells us at only 35% of employees in the United States are engaged in their jobs which could lead to costly turnover, low productivity, and high worker absenteeism.
Forbes provides the following steps for businesses to tackle low employee engagement:
- Create a culture and environment of employee well-being
- Help employees find pride and purpose in their jobs
- Recognize employees who deliver great job performance
- Build on employee strengths and provide solid career paths
Virgin Pulse’s 2017 State of the Industry Survey showed that 56% of companies that invested in employee engagement saw higher employee satisfaction, 40% saw enhanced company culture, and 14% saw revenue growth, according to Forbes.
Consider Mental Health
Mental health awareness is an important and trending topic across the country. According to research by the National Alliance on Mental Health, mental illnesses can cost the U.S. economy $193.2 billion in lost earnings annually. By providing employees access to mental health care and employee wellness programs it is likely your business will run smoother, as per Digiday.
“There is a data-driven case for improving the mental health of our employees,” said Heidi Taglio, head of talent for Eleven. “Mental health-related and substance-abuse issues cost businesses approximately $90 billion annually. So there’s a reason for companies and agencies to be invested,” she noted. “And it is the right thing to do.”
Acknowledging mental health and providing resources for workers is key, as addressing the topic can sometimes be tricky when it comes to confidentiality.
“Managers and leaders in agencies should acknowledge that this is something we deal with,” said the in-house agency employee. “You can have the best company in the world. But if people don’t really care for you, all those cool perks don’t really matter.”
Improve Customer Service
Customer service is the core of many company’s success. Forbes explains that when a business has great customer service, they often see better financial results. Typically, employee well-being and good customer service go hand in hand, which also rings true when it comes to low employee well-being and poor customer service.
If a worker is stressed or has difficulties outside of work and in their personal lives, this can be brought to work. This unhappiness can impact their customer service abilities and potentially hurt corporate reputation.
Workers who are happy and have high well-being tend to provide much better customer service, be more productive, and show more enthusiasm towards the job they do. These factors, when harnessed strategically, boost bottom lines with real ROI, according to Forbes.
Invest in Workplace Safety
With heartbreaking mass shootings and destructive severe weather threats across the United States, workplace safety is top of mind. When an employee goes to work in the morning, they want to return home safely after the day is done. Businesses and organizations are expected to provide a safe and secure work environment without any health or safety hazards. When a workplace is safe, employees are likely to feel more comfortable and productive, which reflects back to ROI.
Some businesses are leveraging their mass notification systems to help bolster the feeling of safety around the workplace. Others are investing in workplace safety technologies such as anonymous tip software and mobile panic button applications to improve emergency preparedness and response.
In our annual Workplace Safety and Preparedness survey over 540 surveys were completed by full-time employees in numerous industries across the United States. Within the survey we asked workers whether they felt safe at work and if they believed their employer would be prepared for an emergency. Discover our findings below!