R.O.I

In short

 “The concept of the health-promoting workplace is becoming more important and more relevant as more private and public organizations increasingly recognize that future success in an increasingly globalized marketplace can only be realized with a healthy, qualified and motivated workforce.” (Health Promotion International, June 2018)

Furthermore, the global mental health awareness campaigns, have increased awareness of the importance of good mental health of de-stigmatizing poor mental health and mental illness.

Return on Investment is generated through

• improved productivity
• improved market value
• cost savings – absenteeism and presenteeism
• risk management
• legal compliance
• organizational recruitment and retention
• organizational reputation and leadership vision

Improved Productivity

Research shows that employees who feel recognized as whole human beings and find have purpose and recognition in the workplace are more productive.  Inspired employees are more productive than engaged employees and satisfied employees (Bain & Company & EIU, 2015).

The contemporary workplace has an unprecedented mix of cultures and generations working side by side. A respectful, supportive workplace community allows for understanding between the diverse employees and allows for the innovation and creativity that results from bringing out different perspectives.

Financial Performance

 There is a growing body of research that demonstrates a link between a corporate culture of health and higher market valuation.

In 2013 the American College of Occupational and Environmental Medicine found that companies that build a culture of health by focusing on the well-being and safety of their workforce yield greater value for their investors. 2016 research in the Journal of Occupational and Environmental Medicine reported that socially responsible companies (C. Everett Koop Award Winners) that invest in the health and well-being of their workers demonstrate a higher market valuation than those that don’t.                

Cost reduction:  absenteeism and presenteeism 

Fewer employees will need to be absent, choose to be absent or file disability claims due to stress and mental health concerns in a psychologically healthy and safe workplace. Worldwide the cost of work-related mental health problems is staggering both in terms of lost productivity and health care.

• In Canada is estimated at Cnd$ 33 billion a year in lost productivity plus billions of dollars in care.
• OSHA EU estimates the cost of work-related stress across the European Union at 35 billion euros a year
• Japan estimates loss-of-labor cost from sick leave due to mental disorders at US$ 8.39 billion (950 billion yen)

There is growing consensus that the cost of lost productivity due to presenteeism is far greater than the cost of absenteeism. Estimates range from 3 to 10 times the cost of absenteeism. Corporate culture and morale have been identified as a significant factor in the number of employees who are at work but under perform. They may be there despite poor psychological or physical health because they lack workplace support, or fear repercussions from being absent. This can lead to health and safety issues for other employees and in some industries put the general public at risk. It is also possible that “present and under performing” is a response to a workplace that is experienced as unsupportive or unrewarding. Either way a health promoting workplace that offers a psychologically safe system of work can reduce the occurrence of presenteeism.

Risk Management

A psychologically healthy and safe workplace, mitigates the risk of claims and lawsuits due to workplace harassment, bullying and violence as well as the ensuing negative impact on organization reputation.  Internationally chronic and/or cumulative stress-related disorders are increasingly acknowledged and compensated under disability claims and workers compensation policies.

Legislative compliance

Around the globe, legislation is evolving beyond duty to care to a duty to provide a psychologically safe system of work. Increasingly organizations are held accountable for the impact of workplace experience on employee mental and physical health.

In Canada the standard for workplace psychological health and safety is currently voluntary. However it is expected that parts of the standard which address harm prevention and safety will become legislated. Several provinces have introduced workplace specific anti-harassment and bullying legislation, which resonates with the PHS standard.

Finland, Serbia, Korea, South Africa, Japan and Germany are just a few of the 20-plus countries that have legislation concerning workplace bullying, harassment and violence. The number of countries with such legislation continues to expand.

The U.K., Belgium, France, Japan and Korea are among the countries that have already introduced legislation which holds employers accountable for work related stress and mental health and that expect organizations to assess and eliminate or mitigate the risks.

Organizational Recruitment and Retention

Predicted labor and skill shortages will make the need to attract and retain talented employees more pressing in the near future.

The 2016 Price Waterhouse Cooper Global CEO Survey identified the need for employees with soft skills a one of the greatest challenges for organizations.

Millennials defy their reputation for job hopping and surveys indicate that they place a high value on workplace recognition and support for personal and professional growth. Additionally, Millennials are loyal to their coworkers and have indicated that work for their small team is more valuable and meaningful to them than individual work for the company. In other words: workplace relations matter

Organizational leadership vision and reputation

 A new generation of CEO’s are promoting  a vision that puts  people management  at the center of their business strategy.  If the external, practical and financial arguments in favor of a psychologically healthy and safe workplace aren’t enough: consider your leadership identity and vision for the organization.  Does day to day practice in your organization reflect your values? Is your organization fostering the loyalty and engagement you seek?  Do you envision an organization where employees want to be at work? Do you see a workplace where employees are invested in the best interest of your organization? 

Employer reputation matters to employees. Surveys continue to find that the value of investment in people and a positive workplace environment will outweigh the financial incentives for employees. Additionally the reputation of a employer can reflect on the reputation of the employee.