On average, UK organisations are investing £150 a year on wellbeing per employee. Although this may seem expensive, particularly at a time where businesses are under immense financial pressures, the cost of ignoring staff mental health is even greater.
Here’s three key reasons why your business can’t afford to ignore workplace wellbeing:
1. Sky-high sick days
From reduced productivity levels and interrupted service to poor team morale and understaffing issues, when an employee is habitually and frequently absent from work, it can have a negative impact on the overall workplace. Not to mention, it’s seriously costly.
Research reveals that absenteeism due to poor mental health costs UK companies up to £45 billion each year - an eye-opening figure that has peaked since the likes of home working, pay cuts and furlough have come into play.
2. Pricey productivity levels
Presenteeism is on the rise, meaning employees are turning up to work but are unable to perform at their peak productivity due to mental and physical health concerns.
This lack of productivity is costing the UK economy billions, with data revealing that approximately £92 billion was lost in 2019. The chances are this figure has increased as an overwhelming 84% of employees say they’ve observed presenteeism both in the workplace and at home during the last year.
With presenteeism costing organisations double the amount of absenteeism, it’s important that C-level leaders support employers to change the current ‘always on’ culture and make them feel comfortable to take time off when they are unwell, not just physically but mentally too.
3. Employee turnover expense
Have you ever looked closely at exactly how much it costs your organisation every time an employee hands their notice in? According to research, the average cost of turnover per staff member is over £30K, with things like advertising job opportunities, taking time out for interviews and training new employees all adding up.
People come and go in business all the time, that’s normal. But if it’s becoming a frequent occurrence, have you ever considered why your staff turnover is so high?
One of the hidden causes is often down to employee mental health and burn out - if your people don’t feel like your organisation cares for or supports their wellbeing, they are likely to leave for an employer that does.
Making workplace wellness affordable
By ignoring the importance of having a workplace wellbeing strategy, your business can incur some serious costs and fall far behind competitors. Analysis by Deloitte reveals that on average, every £1 spent on supporting staff mental health, can earn employers £5 back in reduced absenteeism, presenteeism and staff turnover – pretty worth it if you ask us!
Thankfully, forward-thinking employers are recognising this impact and as a result are investing more and more into initiatives that support the mental and physical health of their people.
The good news is, an employee wellbeing strategy doesn’t have to cost an arm and leg to be successful. We’ve teamed up with Nudl to help businesses in the Tees Valley secure funding towards their staff wellbeing support – making workplace wellness financially affordable and sustainable. If you’d like to find out more, please get in touch. We would love to hear from you! www.keywellbeing.co.uk