With the launch of the wellbeing index earlier this year, the government has made it clear that the nation’s wellbeing and happiness is high on the agenda.

But it’s not just the government taking this seriously – many new innovative and forward-thinking brands are taking a new approach to business and leadership, making the wellbeing and happiness of their staff a priority. These leaders understand that a healthy, happy workforce means a productive one.

Do you have a wellbeing programme?

An effective wellbeing programme can really improve the health, energy, happiness and performance of staff and this has a positive impact on the bottom line.

Wellbeing programmes can vary between organisations, but all focus on improving the health of employees. By taking a more proactive approach, focusing on both physical and mental wellbeing, and promoting healthy ways of living you have a real opportunity to make a positive change to the health, energy and performance of your staff.

To really achieve all the benefits associated with a good wellbeing programme there needs to be buy-in from the top. How can you successfully demonstrate the financial benefits of a wellbeing programme? Here are five simple tips to help your business case:

1. What does sickness absence cost?

Look at the figures. How much is sickness absence really costing your business? If you don’t know then use the average number of sick days per employee and your company’s average daily salary rate.

For example, the average cost of sickness absence for a business with 750 staff = £2,025,000
a. Number of employees: 750 x 7.5 average number of sick days per employee*
Total days absence = 5,625

b. Your company’s average daily salary rate £120 x 5,625 (total sick days) = Cost of absence: £675,000
Actual cost of absence = £675,000 x 3 = £2,025,000
(x 3 figure is the average contribution to the business you are missing from each employee absence day)

* Research from the CIPD shows the average number of days off sick per employee is 7.5.

2. Find out the cost of staff turnover

We know from our work with some of the UK’s top brands that by investing in employee wellbeing staff retention improves, therefore it’s also important to take into account the cost of staff turnover.

The average cost of staff turnover for a business with 750 staff = £847,500
Number of employees lost in the past year 113 x £7,500** = £847,500

**113 is based on 15% staff turnover and £7,500 is the average cost to replace an employee

To calculate the true cost of poor employee wellbeing = cost of sickness absence + staff turnover
So for an organisation with 750 staff, where the average daily salary is £120, poor employee wellbeing can cost businesses around £2,868,750 each year

3. How does engagement drive performance?

Research from Best Companies shows that the better the staff engagement, the better the profits. There’s a clear link between employee wellbeing and employee engagement so the business case for investing in employee wellbeing is simple: healthy engaged staff = healthy profits.

4. How does health & energy impact performance?

Academic research studies show we perform better and are more successful when we’re feeling energised and in good health. However, our recent health and energy check found the large majority of workers (80%) score just 40% on the key drivers of good health and high energy.

There’s a huge opportunity to improve performance by helping employees make simple changes to improve their health and maximise their energy.

5. Look to the best companies

Look at what other successful high performing organisations are doing to succeed. Google, eBay, Innocent and Karmarama are good examples. Not only do they have a strong business model; it’s their people that give them that competitive advantage. They know they need initiatives to ensure their people are engaged, healthy, energised and able to perform at their best.


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Written by Oliver Gray, managing director, energiseYou

Oliver Gray, is managing director and founder of energiseYou, one of the UK’s leading experts in health, energy, happiness and performance: http://www.energiseyou.com

He has coached thousands of senior executives and their teams on how to make simple changes to boost their health, energy, happiness and performance, both inside and outside work.

Oliver believes health, energy & performance should be kept simple, “Essentially living a healthy energised life is about creating healthy habits, both inside and outside of work. If you can make the healthy choices 80% of the time, you can then leave 20% of the time to be flexible with life.”

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