Business Benefits

Research shows, and it is well accepted that healthy, engaged, resilient employees perform better, are more innovative and creative, cost organisations less in terms of days lost to absenteeism and presenteeism, create more wealth for the organisation, and are more likely to stay with the organisation for longer.  Investing in Resilience Programs increases employee engagement, enhances productivity and performance, and builds the workplace reputation as an employer of choice, helping organisations recruit and retain top talent.

Engagement

Organizations with an average of 9.3 engaged employees for every actively disengaged employee experienced 147% higher earnings per share (EPS) than their competition. Employee engagement results in increased performance and revenue growth for the organisation (up to 2½ times), and highly engaged employees outperform disengaged employees by more than 20%.

However, according to latest research:

  • only 13% of employees worldwide are engaged in their work and workplace, costing the economy billions.

Resilience

Mental health conditions cost Australian workplaces around $10.9 billion every year, largely through reduced productivity ($6.1 billion), absenteeism ($4.7 billion) and compensation claims. Every dollar spent creating a mentally healthy workplace will, on average, have a positive return on investment of 2.3 (research by pwc).

However, according to latest research:

  • Resilience is low with 1 in 5 Australian employees experiencing a mental health condition at any given time, and it is estimated that 45% of Australians will experience a mental health condition in their lifetime, the most common being anxiety and depression.
  • Low resilience and chronic stress is often associated with sleep loss, which results in an average of 11.3 days in lost productivity annually, costing the economy billions. In Australia, the economic cost of sleep disorders in 2010 was estimated to be $36.4 billion, with losses in productivity attributable to $3.1 billion.

Wellbeing

The healthiest employees are almost three times more effective than the least healthy, and health and wellbeing programs have been found, on average, to decrease sick leave absenteeism by 25.3%, decrease workers compensation costs by 40.7%, and save nearly $6 for every $1 invested.

  • Strong associations have been found between productivity losses and health risk factors, with employees losing 2.4% of their productivity for each health risk factor measured, and when health risks increase presenteeism also increases.
  • Presenteeism is estimated to cost the employer between three and four times that of absenteeism, which was estimated to cost organisations $3,741 per employee per year in 2010.
  • In 2013 the global economic burden of physical inactivity cost health-care systems $67.5 billion USD worldwide, of which $13.7 billion was attributable to productivity losses. In 2013, the total cost burden of physical inactivity on the Australian economy was more than AUD $805 million, including $165 million in productivity losses.

References

  1. Gallup, State of the American Workplace Report 2013 and 2017
  2. The 10 Best Practices for Enhanced Employee Engagement, Henry S. Miller, 2014
  3. Heads Up – https://www.headsup.org.au/healthy-workplaces/why-it-matters
  4. Insomnia and the performance of US workers: results from the America insomnia survey.
  5. Re-awakening Australia, The economic cost of sleep disorders in Australia, Sleep Health Foundation October 2011
  6. Australian Government Comcare, Benefits to Business: The Evidence for Investing in Worker Health and Wellbeing
  7. The economic burden of physical inactivity: a global analysis of major non-communicable diseases