With the cost-of-living and of doing business making money tighter than ever, we’re not surprised that employers begrudge investing in a workplace wellbeing strategy. But, what if we told you that it will actually cost your business more in the long run if you don’t invest in the right support now?
Time to talk numbers
You’ve probably seen figures in various news articles from several research outlets on how much mental health costs UK employers.
For example, Deloitte recently revealed that the cost of poor mental health for employers has increased to a whopping £56billion. While other research has found that absenteeism from staff burnout is costing employers £700million annually.
Although these numbers are eye-opening, it can be hard to relate them to your individual company. To help you get a more realistic picture of what your people’s wellbeing could be costing your organisation, take a look at our simple breakdown:
Say your employees earn an average UK annual salary of £30,000.
They work 232 days per year (260 work days – 28 days’ annual leave) and 8 hours per day, that means 5 minutes of your employee’s time costs your organisation £1.35.
While that may not look like a massive amount at first glance, think of it this way – every 5 minutes that’s spent being unproductive with your employee unable to focus, get creative or be productive because they’re struggling with their wellbeing, all adds up
Per week = £9.45 (based on 7 days)
Per month = around £40.50 (based on 30 days)
Per year = £313 (based on 232 working days)
And that’s for just one employee.
Factor in the size of your company and we imagine the result is pretty daunting?
Wellbeing Return on Investment Formula
Annual salary ÷ Number of work days per year (260 work days – X days annual leave) ÷ Number of hours per day ÷ 12 = Cost of 5 minutes of an employee’s time
It may sound contradictory in terms of saving money, but to keep the above costs down, the best thing that organisations can do is invest in employee wellbeing support.
Don’t worry, this isn’t where we go all salesly on you and try to sell the Key Wellbeing Hub or our other support services – we’re here to help you determine the costs of your employee’s wellbeing and look at the ROI that your organisation could gain.
How much does employee wellbeing support cost?
So then, how much do workplace wellbeing and mental health services cost?!
Of course, these things vary depending on company size, headcount and the actual product or service offering etc. but to give you a basic idea, we’ve got a real example based on our Wellbeing Week initiative.
To keep it simple, let’s say your organisation has 100 employees:
The product / service: Wellbeing Weeks
The number of users: 100 employees
The cost per employee per week: £12
Total cost across the year: £48 per employee / £4,800 per organisation
That’s the product costs, but what about the cost of employee’s time? Again, to keep it simple, let’s base it on an average UK annual salary of £30,000 like we did above.
Total duration of sessions: 1 hour (4 x 15min sessions across the year)
Total cost of employees time: £16.20 per employee / £1,620 per organisation (As worked out above, 5 mins of your employees time costs £1.35)
The cost of delivering quarterly Wellbeing Weeks to your organisation would therefore be: £6,420 total investment per year (£4,800 Wellbeing Weeks + £1,620 Employee’s time)
A savvy investment
Now, given the economic crisis we’re experiencing across the globe, you probably want to know if that investment is worth your while and how it will leave your organisation in the money, rather than out of pocket. Ready for more figures?
Your employee’s hourly wage = £16.20
Employee’s wage cost per minute = £0.27
For your entire organisation (of 100 employees) to be productive for just one minute it would cost £27.
If we divide the Wellbeing Weeks investment figure (£6,420) by £27, we can find out how many minutes of productivity need to be saved to redeem the time and money invested.
£6420 / £0.27 = approx. 238 minutes of productivity per year need to be saved to break even. That’s just 55 seconds of productivity per work day across a typical year.
So, in a nutshell – if your people take on board the helpful guides, tools and techniques that are covered during Wellbeing Weeks and use them to manage their daily wellbeing, changing just 55 seconds per work day of being unproductive to being energetic, efficient and effective, then you’re quids in!
Too often, businesses assume that they have to pay an arm and a leg for workplace wellbeing initiatives to have a successful impact. We hope with this breakdown and industry-backed research that we’ve demonstrated how small investments can make a BIG difference.
To find out more about our Wellbeing Weeks, book a free info session here.
Minimal Fruit Miles & Carbon Neutral Logistics
Eco-friendly, Plastic Free Packaging & Carbon Neutral
We Don't Use Traditional Fruit Baskets
All your Groceries for the Office in one Place
100% Flexible Subscription
Near Zero Waste
We aim to do business the right way. We pay our growers and producers a fair price to ensure they can invest in future generations and keep supplying our fruit baskets for many years to come!
No contract or tie-in! We set up your account and will invoice you. Payment by BACs, credit card, cheque or direct debit. Shopping for a larger Office? Contact us for a competitive quote for your fruit.
A Team That Cares
We do what we say we will. We are real people and passionate about what we do.
No contract or tie-in! We set up your account and will invoice you. Payment by BACs, credit card, cheque or direct debit.