Don’t Cry Over Missed Profits

Are you missing out on your profits from not investing in WHS and Wellbeing?

‘For every $1 invested in company wellbeing initiatives, businesses can expect to see a return of up to 12x within a year’ (Xero)

You may yet to be convinced, but research consistently demonstrates a positive ROI for WHS & wellbeing initiatives. The results of recent research commissioned by Xero found that much of this return on investment comes when a business takes a proactive approach to worker wellbeing and prioritises evidence-based interventions, not just a “one off” yoga class on a Friday afternoon.

Too often, businesses start thinking about worker wellbeing, well after the horse has bolted. Such organisations also tend to gravitate towards non-evidence-based wellbeing interventions that require little thought or planning and are easy to implement but have little or no impact on worker wellbeing. This is referred to as ‘managing’ risk rather than mitigating it.

Is Your Organisation ‘Managing’ Or Mitigating Risk?

Consider the last time worker wellbeing was discussed at a board level in your organisation. Did the meeting end with a decision to send your team gift hampers? How much did that cost, across your entire organisation? Did productivity, profit and employee retention measurably improve as a result? Could that money have been better spent on a more considered and targeted wellbeing initiative?

Businesses leaders need to look to the broader strategy and long-term value associated with better WHS outcomes. Creating a healthy and safe workplace, one that protects both the physical and mental health of employees, is essential to achieving business objectives and delivering shareholder returns.

Simply ‘ticking the boxes’ for compliance without considering the needs of your people will eventually have a negative impact on your organisation’s culture, employee retention, talent acquisition and, ultimately, your profits.

Wellbeing Programs Yield Long Term Cost Reduction.

Well considered and genuine efforts to improve worker wellbeing can have a huge impact on an organisation’s profit margins. For instance, taking steps to proactively identify and mitigate potential WHS risks in home workspaces has huge potential to reduce the costs of workplace injury that stem from lost productivity, absenteeism, presenteeism, Workcover claims and, potentially, litigation.

Furthermore, workers that feel seen and supported by their employer, report higher levels of job satisfaction and are far more likely to remain in their current role and contribute to the success of their organisation.

An Empathetic Approach Is Essential

Your organisation’s culture and profitability depends on your ability to understand the needs of your people. In order to reap the benefits of a wellbeing program, you’ll need to put yourself in their shoes.

Try and see the world through your team’s eyes, particularly those working remotely and those who are most likely to be at risk of struggling, such as new employees, Gen Z workers and singles. Consider what you as an employer can do to make a meaningful impact on their health and wellbeing, both now and in the long term. They’ll appreciate it far more than a hamper!