Posted on: Monday March 11, 2019
What is the ROI of Employee Benefits?
Working five days a week for fifty-two weeks a year can become monotonous. When we are stuck in a routine, one of the first things impacted is creative thinking. With a lack of external stimuli, the brain is unable to think outside the box. Monotony can also lead to a decrease in employee’s physical and financial wellbeing. Happier people make happier workers, and happier workers are more productive; it is important that employers do everything in their power to make their employee experience enjoyable.
An important aspect of any employee experience are the benefits provided by the employer. Our recent Physical Health survey found that 74% of people wanted their workplace to offer physical health-based incentives, including rewards for steps and other added benefits; and 32% of people also wanted the access to a video doctor service. These incentives alone increase ROI, as this allows for less time taken out of work to attend doctors’ appointments and reduce presenteeism.
A study from the University of Warwick found that general happiness results in a 12% spike in employee productivity, and found that unhappy employees were roughly 10% less productive than average, and less likely to put effort into their work. Alexander Kjerulf, who is the chief happiness officer for Woohoo Inc., also stated that happy employees make better decisions, are better at time management, work better with others, and possess a number of other critical leadership skills, making them better management material, and increasing the quality of their work.
At the end of the day, losing staff is bad for business. A study conducted by Careers found that losing a middle manager costs an organization up to 100 percent of their salary, a huge outlay for any business. Happy staff are more likely to stay in the business, which allows employers to save time and money on recruitment and onboarding. This is beneficial to both the employer and employee, as the employee will have the additional peace of mind of job security, and the employer will spend less time recruiting and training replacement staff.
Improved Co-Worker Relations
Not only do happier staff work better, but they work better with each other. A study by Mutual Responsibility proved that happiness is contagious, meaning happiness can have a positive effect throughout the workplace. This also increases the likelihood of employees building good relationships, which improves retention rates and ultimately saves the business time and money.
If you would like to learn more about happiness at work, read our other blogs, or contact us to book a demo today!