The Cost of Not Investing in Employee Wellbeing Programs
As a benefit decision maker, it’s important to understand the costs of not investing in employee wellbeing programs. While it may seem like a cost-saving measure in the short term, neglecting to invest in employee’s wellbeing can lead to significant costs in the long run.
One of the biggest costs of not investing in employee wellbeing is the impact on employee health. Studies have shown that employees who do not have access to well-being programs are more likely to experience stress, burnout, and mental health issues. According to a study by the American Psychological Association, job stress is the leading source of stress for American adults and is linked to many physical and mental health problems. Furthermore, a study by the World Health Organization found that burnout is officially considered an occupational phenomenon, leading to a decrease in productivity, a rise in absenteeism, and increased healthcare costs.
Another cost of not investing in employee well-being is the impact on employee engagement and job satisfaction. When employees do not have access to well-being programs, they may feel that their employer does not care about their overall well-being and may become disengaged and less satisfied with their job. According to a Gallup survey, only 15% of employees worldwide are engaged at work, and actively disengaged employees cost the U.S. $450 billion to $550 billion per year.
Companies that do not invest in employee well-being may also have a harder time attracting and retaining top talent. A study by Glassdoor found that 80% of job seekers consider a company’s culture and values when applying for a job and that companies that prioritize employee well-being are more likely to attract top talent. Furthermore, a study by the Society for Human Resource Management found that organizations that invest in employee well-being have lower turnover rates.
Finally, there’s also the reputational cost of not investing in employee wellbeing. Companies that do not invest in employee well-being may be perceived as uncaring or unresponsive to the needs of their employees. This can lead to negative press and a damaged reputation, which can be difficult and costly to repair.
Not investing in employee wellbeing programs can lead to significant costs in the long run. These costs include the impact on employee health, engagement, and satisfaction, as well as the recruitment and retention of top talent, and the reputational cost. As a benefit decision maker, it’s important to weigh the costs of not investing in employee wellbeing against the costs of investing in these programs. Investing in your employees can lead to a healthier, more engaged, and more satisfied workforce, which can ultimately benefit the company as a whole.