This Financial Post article shouldn’t surprise you, but it does add validity and data to the return on investing in your employees:
Employers who spend more on their workers’ mental health make more money, Deloitte study finds
The study says that “for every dollar spent, the median return on investment is $1.62 by the third year and increases over time.”
What does an investment in workers’ mental health mean? From the article: “…preventive programs and measurable initiatives to tackle poor mental health month their employees…”
At Snowfly we are big proponents of this kind of investment. You (hopefully) invest in the right tools for your employees to use to do their jobs. That includes the right vehicles, the right hardware and software, and whatever they need to get their job done efficiently and without hassle. You invest in training them in their job functions. You know that these investments mean less downtime and better employee performance, which translates to healthy business margins.
But what about their mental health? Is it an employer’s responsibility to provide mental health care? Isn’t that something that should be take care of outside of the office?
When talking about mental health care, yes. You are (probably) not a mental health care professional, which usually requires licensing and formal education. And from morally and ethically your agreement with an employee or contractor doesn’t give any indication that you will help them with their mental health. But, let’s reframe mental health from “seeing a psychologist” to something as simple as “helping an employee feel validated, heard, and appreciated.”
The article talks about traditional mental health and alludes to “programs and initiatives.” But what does any of that mean? What are programs and initiatives that can improve the mental health of individuals in your organization? Some questions:
Would providing a better work environment, with the right number of public and private (and quiet or open) rooms contribute to mental health?
Would changing the music impact mental health? Imagine going to the extreme with, say, thrash metal… how would that impact everyone?
Would creating a culture of recognition and genuine appreciation have an impact on mental health?
I’m not suggesting that any of these things will have a profound, life-changing impact that can cure depression, anxiety, or other issues. But check out this line from the article:
“Even small steps that aren’t yet generating a return on investment are “reducing the cost of doing nothing,” according to the study.”
What are the costs? Direct costs include:
- healthcare benefits
- drug costs
- short-term disability payments
- long-term disability payments
Indirect costs include:
- absenteeism
- employee turnover
- “presenteeism,” which the study defines as “workers attending work while they’re unwell — which results in lower productivity”
These are real costs that impact your bottom line. The way you can help with these costs can be as simple as changing lighting, or training management to recognize their team more and better.
If you want more stats and figure and validation, check out the article here. It’s a short read. If you want to know what YOU can do to make an impact on your employees, and recoup on the ROI of $1.62 for every dollar you spend (sounds like a great investment to me!), reach out to Snowfly. We will talk to you about what we’ve seen in multiple industries where our customers are seeing results. Whether it is from an incentives program that really works (and is not just a flash in the pan) to a wellness program that is fun and easy to use, getting real results, we see our customers enjoying the benefits of creating or reinforcing a culture of appreciation.
How does that $1.62 for every $1.00 invested happen? Think about this: what if you didn’t have to deal with absenteeism? What would the financial cost of that alone mean to your bottom line? From paying overtime for another worker to cover someone who calls in sick to lost opportunities to whatever else you associate with absenteeism, imagine all of that headache and cost goes away.
Now your little wellness program, or your recognition program, adds real value.
What if you had better retention and less turnover? What if your team was so loyal and happy (employee satisfaction, anyone?) they came to work on time and were present while there, with high (and measurable) employee performance? What if everything ran as smoothly as you imagined it would when you first took your management job?
This doesn’t happen by accident. Creating a culture and getting the best out of people doesn’t “just happen.”
We’re ready to talk about the tools, systems, and programs that we have at Snowfly to help you contribute to the mental health, and workplace satisfaction, your employees get to experience.
Give us a call.
Snowfly might become the most important partnership you develop all year!
