Human Resource Outsourcing

Why prioritising employee wellness is critical for business success

Imagine the Avengers perpetually bleary-eyed from lack of sleep, constantly frazzled and on the verge of burnout. Would they be a match for Loki's alien army? Absolutely not. Extend this logic to organisations. An unhealthy and unsupported workforce is a team of depleted heroes.

On the contrary, a healthy workforce brings focus, energy and resilience to the table, ensuring your company is prepared to face any challenge. In this context, ‘healthy’ encompasses physical, mental and psychological wellness. This reinforces the importance of employee wellness—the foundation of a motivated, efficient and productive workforce, and the fuel that propels organisations towards success.

The burning candle: The cost of a disengaged workforce

Tom Rath, a renowned expert on employee wellness notes: "The greatest competitive advantage in today's economy is a positive and engaged workforce."

Surprisingly, many organisations overlook the cost of a disengaged and unhealthy workforce. Here are some eye-opening statistics to consider:

• Presenteeism: This is a phenomenon where employees come to work but are mentally disengaged. It is a hidden killer: $150 billion are lost annually in the US due to employees showing up disengaged, often due to job insecurity. Their lack of focus tanks productivity, making it harder to detect than absenteeism.
• Absenteeism: While an occasional sick day or personal day is understandable, frequent absences could indicate employee burnout, workplace harassment or even a sign of job hunting. The US Bureau of Labor Statistics (BLS) reported a 3.1% absence rate in 2023, costing US businesses an estimated $225.8 billion annually.
• Turnover: Apart from low productivity and disengagement, neglecting employee wellness also leads to increased turnover. Employee turnover poses a significant financial burden to organisations since replacing a skilled employee can cost a company double their annual salary.

These are just a few ways a stressed and unhealthy workforce can negatively impact your bottom line.

From stress to success: The ROI of employee wellness initiatives

The concept of workplace wellness has a surprisingly long history, dating back to the 17th century with Italian physician Bernardini Ramazzini. Back then, it focused on preventing work-related illnesses. Today, programmes are far broader, helping employees manage everything from weight to stress.

This shift reflects a growing understanding that investing in employee wellness initiatives is not just about being a good employer, it is a smart business decision. Here are more details:

• Increased productivity and engagement: Research indicates that prioritising employee wellbeing leads to a cascade of positive effects, such as heightened focus and productivity, as demonstrated by an 84% increase according to Zippia, along with enhanced engagement and satisfaction, as evidenced by an 89% improvement, according to Gallup.
• Reduced absenteeism and presenteeism: When employees feel supported and have access to resources for managing stress and staying healthy, they're more likely to be present, both physically and mentally, and perform efficiently at work.
• Improved employer branding and talent acquisition: In today's candidate- centric, competitive job market, companies with a reputation for prioritising employee wellness attract and retain top talent. A recent survey found that 60% of job seekers consider a company's wellness program when evaluating a job offer.

Building a culture of wellness, it's all about action

Employee wellness was once just about a bigger paycheck or a quick break. Companies are now rethinking wellness, and focusing on holistic wellbeing. This means actively identifying gaps in their programmes and implementing changes that truly support their employees. Here are more details.

• Comprehensive health benefits: This gives employees a coveted safety net, positively influencing their wellbeing. A truly comprehensive plan may encompass the following:
  • mental health resources, employee assistance programs (EAPs) and coverage for therapy sessions with licensed professionals to aid employees in coping with stress, anxiety and depression
  • preventive care coverage for routine checkups, screenings to detect potential health issues and immunizations
  • wellness programs and stress management workshops that encourage healthy habits among employees
• Work-life balance initiatives: Encourages flexible work arrangements, paid time off and programs that support employees' personal needs, for example, on-site childcare.
• Financial wellness support: Financial wellness programs such as budgeting, savings and planning, are in high demand, almost 75% of employees want them!  By helping employees achieve financial security, you can help reduce their stress, boost happiness and focus and ultimately, see a positive impact on their work performance.
• Healthy workplace culture: This includes encouraging frequent breaks, offering healthy snacks, on-site fitness facilities or wellness challenges.
• Open communication channels and recognition: This makes employees feel comfortable discussing their wellbeing concerns. Recognize and reward employees for their contributions to create a positive and supportive environment.

Invest in your people, reap the rewards

Prioritising employee wellness is no longer a fad; it is a business imperative. Take Johnson & Johnson (J&J) for example. Since 1995, their employee wellness programmes boast a remarkable decline in smoking, high blood pressure and physical inactivity, all by more than half.  But the benefits extend beyond just employee health. J&J estimates these programs have saved the company a phenomenal $250 million in healthcare costs over the past decade. That is a return on investment of $2.71 for every dollar spent between 2002 and 2008.

By investing in the wellbeing of your workforce, you are not just doing the right thing, you are also laying the groundwork for long-term prosperity. Remember, a happy, healthy and engaged workforce is the key to building a resilient and thriving organisation.

How can Infosys BPM help?

Feeling overwhelmed by the complexities of employee benefits and wellbeing?  Infosys BPM’s comprehensive suite of Benefits Administration Services streamlines everything from retirement plans to health and wellness programmes.  Let us handle the administrative burden so you can focus on keeping your employees happy, healthy and productive.