the roi of workplace well-being

The ROI of Workplace Well-Being

© 2015, Global Workplace Analytics

Global Workplace Analytics A Recognized Authority


Proprietary Research Library with Thousands of Data Points


Custom Business Case

© 2013, Global Workplace Analytics © 2015, Global Workplace Analytics

Download at: GlobalWorkplaceAnalytics.com/whitepapers

What’s Good for People?

Moving from Wellness to Well-

Being



Net Benefit

What is ROI?

Cost

ROI


Maslow


Esteem

Belonging

Safety

Physiological

Self Actualization


Hygiene

Motivators 81 31

19 69

Factors contributing to job dissatisfaction

Factors contributing to

job satisfaction

Hertzberg


Motivators Hygiene

Achievement Recognition Work Itself

Policies Supervision


Esteem

Belonging

Safety

Physiological

Self Actualization


Disconnected

ü  Lighting ü  Daylight ü  Temperature ü  Food ü  Movement ü  Air Quality ü  Hydration ü  Ergonomics ü  Nature ü  Cleanliness


ü  Financial ü  Health ü  Conflict ü  Stress ü  Noise ü  Privacy ü Choice ü Control


Flexible offices with choice Private or shared enclosed office Designated cubicles Flexible environment with no choice

Temperature I Air Quality | Natural Light | Noise | Office Lighting


Belongingness

Needs: §  Friendship §  Community §  Connection §  Caring §  Contribution


Esteem

Needs: §  Pride § Respect §  Trust § Growth §  Strengths


Self Actualization

Needs: §  Self-Acceptance §  Morality §  Problem Solving



1)   Value of People 2)   Why 3)   ROI/Business Case


Why is this so hard?

People

are expensive!


Math Ahead

REMAIN CALM

WARNING


$100K per year = $50/hour about $1/minute

8 min/day ($8) x 250 days/year

= $2,000/yr


$100,000 x 6 = $600,000

$600,000 = $300/hour or $5/minute

8 min/day ($40) x 250 days/year

$10,000/yr © 2015, Global Workplace Analytics

1)   Value of People 2)   Why 3)   ROI/Business Case


What’s Driving Change?

Well-Being •  Costs (US Only) •  Productivity •  Presenteeism •  Absenteeism •  Engagement


What’s Driving Workplace Change?

§  Attraction/Retention

§  Costs

§  Engagement

§  Productivity/Performance

§  Innovation

§  Collaboration © 2015, Global Workplace Analytics

Global Workplace Analytics

Frank Van Massenhove


Collateral Savings


+ Well-Being +Engagement

Working Well, Buck Consultants/Xerox 2014

= Lower Costs = Attraction/Retention

= Productivity/Performance



1)   Value of People 2)   Why

•  Well-Being •  Engagement •  More

3)   ROI

% of Workforce


Unhealthy US Workers Absenteeism Costs $153B, Gallup 2013

A least one chronic disease


86%

Unhealthy US Workers Absenteeism Costs $153B, Gallup 2013 © 2015, Global Workplace Analytics

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The Health of Wellness, Willis, 2014

32%

Only 11%

© 2015, Global Workplace Analytics The health of wellness, Willis, 2014

Wellness Budget: $0 = 35% < $100 = 42% > $150 = 17%

The Willis H

ealth and Productivity S

urvey Report © 2015, Global Workplace Analytics

ROI = 144% to 3,000%


Healthcare Budget

$16,000 pp/year


Wellness Budget >$150

Proven ROI

Healthcare Budget $16,000 pp/year

NO Proven

ROI

© 2015, Global Workplace Analytics The Willis Health and Productivity Survey Report

86% less productive


88%


Claims

CDC.gov, Chronic Disease © 2015, Global Workplace Analytics

Chronic Risk Factors 1) Obesity 2) Inactivity 3) Stress 4) Food choices 5) Tobacco 6) Depression


Obesity Trends* Among U.S. Adults 1985

*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)

No Data <10% 10%–14%

© 2015, Global Workplace Analytics Source: Behavioral Risk Factor Surveillance System, CDC


No Data < 10% 10%–14% 15%-19%


No Data <10% 10%–14% 15%-19% 20%+

Obesity Trends Among U.S. Adults 1997


No Data <10% 10%–14% 15%–19% 20%–24% ≥25%



<10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%




No Data < 10% 10%–14% 15%-19%



Desk by Altwork

•  Diabetes •  Heart attack •  Stroke •  Premature death


Multiple Risk Factors

Ten Modifiable Health Risk Factors Are Linked to More Than One-Fifth of Employer-Employee Health Care Spending. Health Affairs © 2015, Global Workplace Analytics

3x to 10x more unhealthy

days/month

© 2015, Global Workplace Analytics Unhealthy US Workers Absenteeism Costs $153B, Gallup 2013

•  Absenteeism •  Medical/Pharma •  Workers Comp •  Disability


Productivity Presenteeism


25% to 30%

Absenteeism Medical/Pharma Workers Comp Disability

Productivity Presenteeism


+++ $$$

Engagement/Morale Overtime

Overstaffing Delays

Customer inconvenience Turnover

Accidents

Absenteeism Medical/Pharma Workers Comp Disability

$ $

$

$

$


Presenteeism

Pretend I’m not here.


$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Obesity Stress Inactivity Smoking Depression

• Presenteeism • Absenteeism • Healthcare

Annual Cost Per Person with Condition

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$11K

$18K pp/yr

Health and Work Performance Questionnaire (HPQ)


$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000


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Annual Cost Per Person with Condition

82 minutes a day

23 minutes a day

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000



Per Capita:

$3,800 $3,400 $2,750 $1,450 $1,270 © 2015, Global Workplace Analytics

What’s the

bottom line?

$13M/yr

Obesity $3.8M

Stress $3.4M

Inactivity $2.8M

Smoking $1.4M

Depression $1.3M


Obesity 23

Stress 22

Inactivity 16

Smoking 9

Depression 8

Impact in Man Years = 78


78 Man Years

8% of Staff




3)   ROI

Esteem

Belonging

Safety

Physiological

Self Actualization


Discretionary Effort


51% Managers:

Not Engaged

14% Managers: Disengaged

And you

think I care

about this

why?

The State of the American Manager, Gallup Inc. 2015 © 2015, Global Workplace Analytics

2014 Global Workforce Study At a Glance, Towers Watson

24%

Disengaged


48%

45%

41%

37%

28% Shrinkage

Turnover

Defects

Absenteeism

Accidents

Engagement Reduces…

State of the American Workforce, Gallup 2013 © 2015, Global Workplace Analytics

Engagement Increases…

Profits

Productivity

Customer Satisfaction 10%

21%

22%

State of the American Workforce, Gallup 2013 © 2015, Global Workplace Analytics




3)   ROI

More: Real Estate

Only 49 percent of office desks are in use at any one time during standard office hours.

En.wikipedia.org

Johnson Controls Global Workplace Solutions Workplace Strategy


More: Attraction/Retention


Make me an offer.

More: Resilience


•  Greater empowerment •  Increased collaboration •  Increased efficiency •  Increased communication •  Reduced IT costs •  Increased innovation •  Reduced waste •  Reduced travel costs •  Reduced training costs •  Improved citizenship

Even More


The Cost Not Doing It

•  Reduced competitiveness •  Employer of choice •  Great place to work •  Legal exposure •  Corporate reputation •  Shareholder value


Sustainability





3)   ROI

Obesity Inactivity Stress Tobacco Depression

Before - After

370 250 227 202 150

- 330 - 210 - 197 - 182 - 140

= 40 = 40 = 30 = 20 = 10

= Change x Annual PP Cost ($,000) x $ 11

x $6 x $8 x $8 x $18

= Savings $136,000 / Costs $100,000 = ROI 1.36 to 1

The Cost of WELL™?

60 rolls


The Cost of WELL™? $51/person/yr

$649 $150

$77 =



Well-Being Savings Calculator™ Project Assumptions



Well-Being Savings Calculator™ Risk Factor Prevalence Assumptions


Well-Being Savings Calculator™ Results


Org. Cost/Yr

Years to BE

0.25

0.13

0.1

.9 1.2

1.2

.5


Work Practices Work Policies Work Culture


IT

Benefits

Sustainability

Advisors


Place

People


Let us help you make the business case for agile workplace strategies,

wellness, well-being and more.

Kate Lister President Global Workplace Analytics [email protected]

@FutureWorkforce


$75,000/ per year + 30% benefits = $97,500 per year = $49 per hour = 82¢ per minute

Losing ¼ minute/day x 250 days a year

= 63 minutes per year x 82¢ per minute

= $51/ per year = Per person cost of WELL ($51)

¼ Minute/Day? Really?
