Continuing to the 70ies theme, today’s blog will be all about the cash. We know health and well-being are a great investment. But what if the people holding the purse strings don’t? Or think this is just another fuzzy feelgood topic? We show them convincing, measurable, quantitative proof that workplace well-being pays off.
I started out my blog series with the two ways in which lack of health and well-being can cost your company money: absenteeism (sick days) and presenteeism (underperformance). In a nutshell, investing in employee health pays off because good programs can reduce sick days and improve performance. On average, Harvard tells us, the return on invest (ROI) is about 3:1.
A pragmatic way to calculate your program’s ROI is a before and after comparison. Obviously you’ll have to live with sceptics harping on the difference between causation and correlation, but that’s true for most metrics your company reports. Or do you really think your uptick in sales is purely do to the amazing new product you launched and in no way tied to the fact your biggest competitor just went bust or Michelle Obama was photographed using it?
For absenteeism, track overall sick days before and after establishing the program. Use average salaries and, if applicable, health care expenditure to quantify the associated costs. Salary is a decent proxy because you’d expect it to be roughly in line with the value a person generates for the company. The World Health Organization (WHO) estimates you can expect workplace well-being to generate a 30% reduction in sick days by the way.
Productivity can be measured using the World Health Organization Health and Work Performance Questionnaire. When I’m not productive, my work doesn’t get done. That’s pretty similar to what happens when I’m not at work because I’m ill. Which means you could again convert time into money by using the salary equation.
Then sum up the difference, divide by the costs of your program, and share the quantified joy with your CEO.
Stay healthy and engaged,
P.S: Because Ariana is a one stop shop solution, helping you set up ROI tracking is part of the package – get in touch to learn how we do it