Let’s talk Return-On-Investment.
One of my favorite topics!
Start with your company size. Calculate for a group of people, a couple of departments or the whole company. Keep in mind your TARGET GROUP (which is, as you most likely know, the marketing language for the people you want to reach with your corporate wellness campaign).
There are 4 major departments that will FEEL and SEE the effects of Corporate Wellness:
> Think about the costs to attract new professionals
> Engagement / Disengagement / Bore-Out etc… (sitting at a desk does NOT equal productivity, how EXCITED is everyone, how fulfilling is each ones’ job. This can be put in numbers to follow the growth)
> Voluntary Staff Turnover (how long do people stay. It’s become a norm in Millennial’ Mindset to stay 1-3 years but… how much does that COST your company? What processes can be implemented to lower this cost (when does someone become productive, how can you EMPOWER a new coworker to be productive from day 1, yes you can!) and how can you prevent your best coworkers to leave (the signs are there months before they do BUT as a manager/company leader you are focused on the goals and often don’t have the time to focus on staff turnover, this is where the Corporate Wellness Manager takes responsibility)
Preventing dis-ease. Up to 70% of all dis-ease is preventable. But currently, only on average, 1-3% of government health budgets (in Europe) are spent on prevention. How about in your company? What % is spent on effective prevention?
Healthy people, happy people will make your sales go up up up up! This can be put in numbers too. Mail us @ email@example.com if you want this full calculation.
Happy coworkers thrive, have creativity and GREAT ideas! Make R&D happy and create a business case to involve co-workers in securing the future of your company.
I’ll take 2) Prevention as an example as this is what last night’s meeting was all about and is still flowing through me!
GET YOUR FULL CALCULATION HERE.
In our scenario, you can see a business case for
> 500 coworkers
> Average 15.35 days absent per year
> Average DIRECT cost of 300 EUR per day
> Scenario 1 = 10% decrease in absenteeism, this means everyone is on average 1.5 days less absent.
Imagine this saving of 10%, the absenteeism cost would still be 2mi per year for 500 coworkers (how big is your company?), but the saving is already 230k EUR. Nice one to just mention to your manager no? 😉
Now by using only direct costs, this business case is quite conservative, but let’s make it even more safely attainable goal: 5% decrease in absenteeism, which would be on average 6 hours less absence per person.
This means a possible saving of 115.000 EUR per year.
Now to the magic. If you don’t do anything.
Absenteeism costs will most likely raise. So it’s a ticking clock.
For 500 coworkers on average a cost in between 192k eur & 560k eur per month! and in most of the world, increasing…
Now let’s go the business case.
Imagine investing just 10% of the monthly cost to prevent absenteeism:19k – 56k EUR
So just 19k-56k. 10% of the current monthly cost. That’s it.
Return can be in just 6 months.
What other investments does your company have with such high risk when NOT investing and quick return when investing?
It’s a no-brainer.
For more in-depth articles visit my LinkedIn profile: "Griet Johanna Vandenhouweele"