Well-Being Investments Help Reduce Company Costs

Executive planners are increasingly using terms like employee wellness, organizational health, and worker well-being to describe part of their company’s business strategy in 2024 and beyond. The business case for intentional and deliberate well-being initiatives is getting easier for HR teams to make. Research has consistently proven that workforce well-being directly influences a company’s productivity and profits. The beneficial outcomes make up for the costs associated with investing in worker well-being and wellness programs. The areas of business most affected by employee wellness are also some of the most important to the organization. 

Well-Being Impact Points

Absenteeism – Gallup reports that workers who rate their mental wellbeing as fair or poor have four times more unplanned absences. Absenteeism costs U.S. employers $3,600 per hourly employee per year. Causes of missing work can include an employees’ burnout, stress, fatigue, illness, low morale or family challenges. Managers can partner with their team members and deploy wellbeing initiatives to address specific needs and increase employee attendance. 

Turnover Costs – 51% of American employees are actively job searching or watching for opportunities. Skilled employees are leaving their jobs for companies that affirm their values and support worker well-being. People value their quality of life in addition to other benefits of the job. Employees are 2X more likely to stay with their employer if they are happy and satisfied with their jobs. Employees who participate in wellness programs are more likely to feel their employer values and supports them in addition to feeling invigorated. 

Recruitment – Organizations that offer comprehensive wellness programs are more likely to attract top performers. Employers that support employee health and well-being create a positive work environment that job seekers want. Leaders of companies can prioritize employee well-being and offer resources to support it to attract more qualified talent. 

Talent Development – Employees with a healthy outlook and mental processing are primed to succeed through developmental opportunities. They can effectively navigate the discomfort that comes with a challenge to grow skills and change behaviors. Workers with compromised wellbeing are less likely to take advantage of development opportunities and maximize their benefits. But talent development can also work as a salve to heal employee hurts and inspire wellbeing. So it’s critical that managers try to include everyone on their team in staff development efforts. A study in a customer service call center, for example, found that giving its employees more training so they could independently take on new tasks and resolve more customer complaints improved both the employees’ well-being and their job performance.

Employees Performance – Workplace wellness programs can also raise personnel productivity and performance. A new study by Oxford University finds that companies with higher well-being generate higher profits and command higher valuations, one reason being workers are 13% more productive. 

One study published in the Journal of Health Economics found that employees who participated in a workplace wellness program reported lower levels of stress and higher levels of job satisfaction. These two factors greatly impact workers’ ability to focus, make decisions, and display a positive attitude. 

Healthcare Costs – Comprehensive wellness programs can improve employee health habits and reduce health risks, which cuts overall healthcare costs for companies. Employees can make their mental and physical health a priority because the company encourages them and shares a goal of keeping teams in the best possible condition. 

How To Boost Well-Being 

Offer Personal Coaching – HR can support employees with many different aspects of well-being simultaneously using the TaskHuman coaching platform. Employees can work with specific and highly experienced coaches to: 

• preserve mental and physical health
• learn new professional skills
• develop confidence
• communicate effectively
• assess and seize ambitions
• deal effectively with personal change 

Coaches are available at the convenience of individual employees’ schedules and on demand. The personal 1:1 relationship employees can have with coaches expedites raised levels of well-being among teams because individuals can address their specific needs in a private setting with their coach (or coaches) womb they trust. 

Give More Control – Managers can offer employees flexibility and autonomy in their roles. A joint Harvard and MIT research-for-action initiative found that giving employees the freedom to decide when and how they complete their tasks and more input about decisions raised workers’ effectiveness and efficiency.

Compelling research points to well-being as a source for many positive outcomes for employees and companies. Well-being can create a healthier and more inclusive culture that celebrates both work-life balance and high performance. HR leaders can create best practice policies and well-being programs that emphasize the holistic health and effectiveness of team members. Coaching support and relaxed guidelines around how work gets done can get teams quickly on their way toward increased well-being and positive business outcomes. The current research reminds any remaining skeptics to consider competing on holistic workforce health to win talent and profit margins.