ROI Of Employee Well-being: How To Drive Business Success

Mental health-related workplace absence is rising, leading to rising costs for UK businesses. Unhappy employees are often disengaged, which impacts their work and, ultimately, the company. Conversely, happier, engaged employees are more productive and deliver better service. Here, we explore the importance of employee well-being and how asking and acting on feedback will boost ROI, driving business success.

Table of contents:

Who benefits from investing in employee well-being?

Investing in employee well-being benefits everyone involved. Your employees are the heart of your company, and their happiness directly influences productivity and customer service, driving overall success.

Undeniably, workplace stress is a significant factor in absenteeism, affecting both short- and long-term outcomes. Did you know that 39% of European workers experience negative emotions daily? Undoubtedly, this emphasises the pressing need to address workplace stress.

The prevalence of stress in the UK is alarming, with 9 in 10 adults reporting high or extreme stress levels in the past year. Consequently, this highlights the urgent need to implement measures supporting employee well-being and alleviating workplace pressures.

Corporate burnout, often glamorised as a symbol of dedication, undermines employee well-being. Unquestionably, prioritising quality over sheer hours worked is crucial for maintaining a healthy work environment.

Prioritising the employee well-being isn’t just about compassion—it’s a strategic imperative. A supportive workplace culture can empower employees to thrive, increasing productivity and overall business success. The one simple (but essential) thing leaders can do to improve employee engagement is check in with their staff to see how they feel.

How does a bad employee experience impact ROI?

A poor employee experience can significantly impact ROI, productivity, retention, and overall business success.

Gallup’s State of the Global Workplace: 2023 Report reveals most (59%) of the world’s employee’s are “quiet quitting”. Therefore, these employees are filling a seat and watching the clock rather than fulfilling their potential. Moreover, according to Gallup, low engagement costs the global economy £6.9 billion, accounting for 9% of global GDP. On the other hand, low-engagement workers present a significant opportunity for economic growth.

Did you know that the Europe has one of the lowest percentages of engaged employees, with only 13% reported as actively engaged? However, 72% of workers in the regional percentage are disengaged. Additionally, 15% are actively disengaged. These employees take actions that directly harm the organisation, undercutting its goals and opposing its leaders.

Amidst companies grappling with supply issues and staffing shortages, a bad employee experience can significantly harm the customer experience (CX). In our blog, “Employee Experience: The High Cost of Getting it Wrong,” we look into the high cost of this issue.

According to the Institute of Customer Service, several service issues cost UK firms £9.24bn monthly in complaints handling. Therefore, a hostile work environment affects employees and damages the company’s reputation and customer satisfaction.

Conversely, companies that invest in their workforce and deliver a positive employee experience reap the benefits. Studies show that companies with highly engaged employees experience a 10% increase in customer satisfaction and a 20% increase in customer loyalty.

When is the right time to prioritise well-being?

There isn’t a single perfect time to prioritise employee well-being; it should be woven into a business’s culture to genuinely care for and nurture a workplace environment. However, critical moments such as welcoming new team members or expanding your workforce offer particularly opportune times to emphasise this focus. Nonetheless, it’s never too late to do so.

The global pandemic has caused unprecedented disruptions in the workforce. Remote work is becoming more common, and the need for connection is becoming even more pronounced.

Many employers tried their best to implement certain benefits and support. However, according to Mercer, there’s a notable difference between employers’ beliefs about their benefits and employees’ actual experiences. While 89% of organisations think their benefits adequately supported employees during the pandemic, only 64% of employees feel the same way. This highlights the need for improved communication and benefits delivery. Moreover, it’s crucial to gauge employees’ real-time feelings to address their needs swiftly.

At insight6, we partner with organisations to obtain real-time actionable insights using our innovative online feedback tool, instant insight. By empowering employees to feel valued and listened to, we enable them to focus on tasks that drive impact, ultimately increasing sales, customer loyalty, and profitability.

Where can I find resources to support my employees?

You can find resources to support your employees from various sources, including non-profit organisations like The Stress Management Society and Mind Mental Health Charity, which offer guidance and assistance in recognising and reducing stress. Here at insight6, we can help by providing an online tool to obtain employee feedback, check in on well-being and provide training and development workshops to enhance employee experiences.

Additionally, don’t overlook internal resources such as your HR Department, outsourced suppliers, and Employee Benefits Specialists who can offer tailored solutions and support programmes. Occupational Health Services and Employee Assistance Programs (EAPs) also provide valuable assistance for both physical and mental well-being. Accessing these diverse resources ensures comprehensive support for your employees’ needs.

How do you measure the ROI of employee well-being?

Measuring the ROI of employee well-being can be done through various approaches.

Financial Metrics: To measure ROI, analyse reduced healthcare costs, decreased absenteeism, lower turnover rates, and increased productivity. Quantify and compare these metrics against the investment in employee well-being programmes.

Employee Surveys: Regularly survey employees to gauge satisfaction, engagement, and well-being. Compare survey results before and after implementing well-being initiatives to assess impact and ROI.

Productivity Metrics: Evaluate productivity changes, such as increased output, improved quality, and reduced errors, to gauge employee well-being’s ROI. Track these metrics over time to identify the impact of well-being programmes.

Employee Retention: Monitor employee retention rates pre-and post-implementation of well-being initiatives to determine ROI impact.

Absenteeism and Presenteeism: Track absenteeism rates and measure the impact of well-being programmes on reducing absenteeism. Additionally, presenteeism must be assessed to determine the effectiveness of well-being initiatives.

Get your FREE ROI Tips Employee Well-being Sheet today.

By integrating these measurement strategies, organisations can unlock the true ROI of employee engagement initiatives. Equally, with valuable insights, you can confidently make data-driven decisions to bolster well-being and propel your business forward.

How do I develop an employee engagement plan?

Putting employee well-being and engagement first is crucial for businesses aiming to stand out, attract new customers, and secure long-term success.

  1. Assess your current situation. Conducting surveys, hosting focus groups, or reviewing performance feedback to understand where you are right now.
  2. Set clear goals. Defining objectives is vital, whether you’re enhancing communication, nurturing a positive work culture, or developing your career.
  3. Create specific strategies and initiatives. Think of regular team-building activities, professional development opportunities, or refining communication channels.
  4. Involve your employees every step of the way. Their input and feedback are invaluable in shaping and refining your engagement plan.
  5. Review and refine. Regular monitoring and evaluation ensure you can make necessary tweaks for continuous improvement and success.

As a UK-based customer experience company, we’ve witnessed firsthand the profound influence of employee engagement on customer interactions and brand reputation. Furthermore, engaged employees are vital for delivering exceptional products and services.

Understanding your employees’ perspectives is crucial. Our total online feedback solution, instant insight, provides a seamless and affordable method for collecting and analysing feedback from your team and customers. By collaborating with insight6, you can gain invaluable insights to develop a plan for employee engagement and drive business growth.

Using instant insight, you will:

  • Gather employee feedback effectively.
  • Collect customer feedback efficiently.
  • Gain real-time analysis and reporting.
  • Obtain actionable comments promptly.
  • Improve products and services based on insights.
  • Benchmark against competitors quickly.
  • Boost positive online reviews.
Discover the power of feedback with instant insight from insight6.

Conclusion: The impact on ROI

Investing in our employees’ well-being is imperative, not optional. Furthermore, prioritising their welfare and enhancing the employee experience strengthens resilience, elevates job satisfaction, and directly impacts operations, leading to increased profitability and ROI. By partnering with insight6, you’ll gain invaluable insights into factors shaping your employee experience and strategies to enhance it for business success. Don’t let the cost of stressed or disengaged employees affect your bottom line. Contact us today for a no-obligation chat or request a demo of instant insight to see how we can revolutionise your business!

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Which Wolf Are You?

You will have seen this photo before I’m sure.

The interpretation that goes with the image goes along these lines:

The three wolves in front are old and sick, walking in front to set the pace of the group lest they get left behind. The next five are the strongest and fittest, tasked with the role of protecting the whole group. The largest pack in the middle are always protected from any attack. The last group are also among the strongest and fittest; positioned to protect the group from the back side in an attack.

The last wolf is the leader. He ensures no one is left behind. He keeps the pack unified and on the same path. He is always ready to run in any direction to protect and serves as bodyguard to the whole group. Symbolic of the theory that true leadership is not about being out in front and being the visible leader.

It means taking care of the team.

Sorry to destroy the myth, but this story is just a modern fabrication of one theory of animal behaviour. No-one knows the source and, likely, there is some truth to the theory. Animals have innate behaviours developed to protect the whole pack. Like tribal behaviour in many ancient cultures, and some modern, this team mentality is not just an attitude, it is platform upon which all other actions and behaviours are developed.

Drawing parallels to modern day business, where do you place yourself in the line of wolves? In large businesses, the front running team are often the directors, management and investors; older, slower, less in touch with modern technologies, removed from what is actually happening at other levels. These people feel like leaders, behave like the leaders their icons and predecessors did and rarely look back.

The second group could be likened to middle management, tasked with following the leaders closely whilst also trying to manage the group behind. This group are often too busy to develop their own skills or find time to train, learn and develop new ideas as they feel pressure from the leaders to implement their policies.

The largest group comprises the workforce, the main hub of activity in terms of productivity; heads down, meeting deadlines and fulfilling projects, this group of employees IS the business.

The last group are the disenfranchised members of the business. Those who once ran fast to try to catch up to the first pack to share ideas and offer new ways of doing things but were told to ‘get back in their box’. The last group are the ones who are looking for an exit; tired of not being valued or appreciated.

Are you a leader running out in front, pulling the team along without looking back? Are you the leader who runs with the team or the middle management? Or are you at the back of the pack keeping the last group included and valued?

Is it time to rethink your version of leadership?

Being a great leader is not always measurable. You can Google the top ten traits of great leaders and easily arrive at the usual lists. But being an AMAZING leader is more than that – it is being different, being relatable and tuning in to the unique circumstances that make up your own individual business.

Our One Recommendation For A Leadership Check

There is one simple rule when it comes to checking that you are developing into a great leader; ASK others. Ask your team, ask your clients, ask your peers. You will be on a networking group or business development group, of course, so ask your peers.

Do a survey with your whole team and ask for honest, anonymous feedback.

If you do not ask for feedback, how can you know what people really think? Do not assume, if you have been in your role for a while, that you know what you are doing and that you are right. Do not be deluded by ego or ignorance.

True leaders have one thing in common – the ability to reflect. It is only by asking questions, of yourself, of procedures and of industry, that you can improve and find success.

Which wolf are you then? And is your place in the pack valued and effective? Ask the question and be prepared to change. You may be surprised at the response.