Employee Well-being is Critical to Your Bottom Line
At Brio, we believe that facts and numbers are an essential aspect of success in business. And science shows that enhancing employee resilience, well-being and engagement drive hard results - ultimately increasing productivity, performance and profit.
The Hard Costs of Disengagement
- 70% of employees are disengaged (Gallup, 2017)
- Lost productivity, the top result of disengagement, costs companies around $3,400 for every $10,000 in annual salary per employee (Haydon, 2013)
- Turnover, the end result of disengagement, costs companies 48-61% of an employee’s annual salary (Watson Wyatt, 2015)
Let's logic this out. Based on the numbers above, if your company has 50 employees, approximately 35 (70%) are disengaged at work. If the average salary per employee is around $50,000, you lose $17,000/year per employee -- due to lost productivity driven by disengagement. That equates to $595,000 for all 35 disengaged employees. Say about 5 of those 35 employees quit within the same year, turnover will cost you around $25,000.00 per employee, totaling $125,000. Combining the cost of lost productivity with the cost of turnover, disengagement costs your company around $720,000 per year. Worse, companies with low employee engagement scores earn 32.7% lower than companies with highly engaged employees (International Survey Research, 2006).
The good news: employee resilience and well-being programs can mitigate disengagement-driven costs and even increase profits by an average of $2400 per employee per year (Wang, 2015).
Employees with high levels of engagement, resilience and well-being are:
- 45% more likely to report high levels of adaptability in the presence of change*
- 37% more likely to report always recovering "fully" after illness, injury or hardship*
- 59% less likely to look for a job with a different organization in the next 12 months*
- 19% more likely to volunteer their time in the past month (*Gallup, 2015)
- 2.5 times more likely to stay late at work to finish a project (Tempkin Group, 2015)
- 3 times as likely to do something good for the company that's not expected of them
Highly resilient & engaged workplaces:
- Are 57% more effective (**CEB, 2010)
- Yield 2X higher productivity
- Have employees who are 87% less likely to leave their company**
- Experience 37% lower absenteeism (Gallup, 2013)
- Have 28% lower theft (Gallup, 2013)
- Report 48% fewer safety incidents (Gallup, 2013)
Outperform low-engaged companies by 202% (Dale Carnegie, 2017).
Your ROI: Based on the same numbers as above, if your 35 disengaged employees go through resilience and well-being training, that's an increase of $84,000 in profits. Now, being realistic, not every employee is going to convert from disengaged to engaged. Let's say, based on this, nearly half of those 35 employees become engaged as a result of implementing a customized employee engagement program. That saves you nearly $300,000 in lost productivity and yields additional profit earnings at about $42,000, totaling $342,000 in savings and additional profit.
Company Leaders are Critical to Employee Well-being & Engagement
- Managers account for a minimum of 70% of the variance in employee engagement and well-being scores (Gallup, 2014).
- Leaders who focus on strengths drastically lower employees' rate of disengagement - down to less than 1% (Gallup, 2009).
- Belief in senior leadership is the strongest engagement driver; growth & development is the second (Modern Survey).
Contact us to find out how we can partner with your organization to enhance employee resilience, well-being and engagement.