A global study found that when well-being is actively promoted in the workplace, employees are 2.5 times more likely to view their organisation as a best performer than as a below average performer.
World Economic Forum (2010). The wellness imperative: Creating more effective organizations.
A global study has found that organisations that promote well-being as a priority are seen as 3 times more productive by their employees.
World Economic Forum (2010). The wellness imperative: Creating more effective organizations.
Organisations whose employees are thriving see improved productivity and profitability.
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268.
Each year on average work related mental disorder claims result in 14.8 weeks off work.
Employees who experience high demand, low control, high effort and low reward have been associated with impaired learning.
Employees who experience high demand, low control, high effort and low reward can show increased passivity or aggressive/conflict tendencies.
Employees who experience high demand, low control, high effort and low reward have reduced ability to cope and adapt to change.
In one case study noted in PwC UK’s review of organisational cases, a manufacturing organisation found that productivity increased due to the introduction of wellness programs. The wellness programs resulted in the working week falling from 48 hours to 40 hours, which was also associated with a reduction in stock levels.
In a review of case studies, PwC UK found that 8 organisations attributed their improved productivity to the introduction of wellness programs. Productivity improvements that were noted include fewer errors or rejects and increased utilisation rates, increased competitiveness.
In a review of case studies, PwC UK found that 9 organisations saw a reduction in time dedicated to managing sickness, employee disciplinary procedures and injury investigations following the introduction of well-being programs.
Improving productivity and performance is a major motivation for many employers who run health and well-being programs.
Using NSW and WA data, the Australian Workplace Barometer reported that severely depressed workers were nearly 6% less productive at work (presenteeism) than mildly depressed workers.
Mental disorders result in lost productivity costs of $10.9 billion nationally each year.
PwC. (2014).Creating a mentally healthy workplace: Return on investment analysis.
On average, 6.5 working days of productivity are lost per employee annually as a result of presenteeism. Currently, the biggest contributor to the overall productivity loss caused by presenteeism is depression (21%).
An American survey of 269 Chief Financial Officers shows that more than 60% believe there is a strong link between the health of the workforce, its productivity, and the impact on the bottom-line.
A study examining data of over 5000 employees in a customer services organisation in the U.S. found that work performance (using supervisory performance ratings) were highest when staff reported high levels of psychological well-being and job satisfaction.
Wright T. A, Cropanzano R, Bonett D. G. (2007). The moderating role of employee positive well being on the relation between job satisfaction and job performance. Journal of Occupational Health Psychology,12, 93-104.
For women, approximately 17% of cases of depression are attributable to job strain, for men approximately 13% are attributable to job strain.
LaMontagne A. D, Keegel T., Vallance D. A, Ostry A. & Wolfe R. (2008). Job strain-attributable depression in a sample of working Australians: Assessing the contribution to health inequalities. BMC Public Health,8, 9-10.
Individuals not being appropriately supported can have a flow on effect to co-workers if problems continue to be un-managed e.g. without the right adjustments in work, an employee may require time off. This means co-workers have increased workload, and there are turnover costs from recruitment and training new employees when someone is taking time off or leaves the organisation.
A case study of 300 manufacturing employees found that a 10 point increase in well-being scores was associated with 24% lower presenteeism.
Building a mentally healthy workplace helps increase productivity.
The average costs of presenteeism (reduced productivity when working whilst unwell) far exceeds those attributable to absenteeism. Overall the average annual cost per employee associated with presenteeism was estimated at $1680. This is more than double the estimated cost of absenteeism.
Positive and high functioning employees are more likely to be self-motivated, persist in the face of challenges at work and go above and beyond to achieve work goals.
Avey, J. B., Reichard, R. J., Luthans, F., & Mhatre, K. H. (2011). Meta‐analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance. Human Resource Development Quarterly, 22(2), 127-152.
The quality of an employee’s relationship with their supervisor, their sense of psychological empowerment, a supportive culture and leadership all contribute to job performance.
Employees who experience high demand, low control, high effort and low reward conditions at work are more likely to suffer the adverse consequences of a psychologically unsafe workplace. The costs of these consequences could be staggering for both individuals and the organisations, with performance costs including: reduced adaptability, reduced ability to cope with change, impaired learning, increased helplessness, increased passivity or aggression.
Implementing effective early intervention programs results in a five-fold ROI due to increased employee productivity.
The impact of employees’ mental health conditions on productivity, participation and compensation claims has been estimated by PwC to cost Australian businesses $10.9 billion a year.
For every dollar spent on successfully implementing an appropriate action to create a mentally health workplace, there is on average $2.30 in benefits to be gained by the organisation in terms of improved productivity and lower numbers of compensation claims.