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Why wellness can have a higher ROI than you think – ORH

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By Ivonne Vargas, HR Blogger of GlocalThinking.

The relationship between labor well-being and productivity is more direct than previously thought, which has highlighted the importance of companies offering comprehensive well-being plans that cover all areas of the daily life of their workers.

This is the conclusion reached by Aon’s 2021 Global Wellness Report.”Global Wellbeing Survey», carried out with 1,640 companies from 41 countries, and in which 87% of the companies acknowledge that they have at least one well-being initiative in place, although only 55% have a defined strategy to implement it.

On the other hand, in the “Redefining Work and Rewards 2021 Survey” by the consulting firm Willis Towers Watson, it is reported that 59% of companies state that compensation teams are evolving to align with well-being, new ways of working and Equity, Diversity and Inclusion (EDI)in three axes: pay, benefits and careerswith the aim of promoting the resilience of the organization, dignity in the workplace and the sustainability of human capital.

This trend has been present since last year, and will continue as revealed by the global report “Health Trends” by Mercer Marsh Benefits (MMB), which surveyed 210 insurers from 59 countries to find out the main trends that will shape the future of the medical assistance offered by employers.

The report shows that among the main aspects that shape medical care and the benefits offered by employers are focused on mental health, prevention and promotion of self-care. This is the beginning; however, one must think that today, when talking about well-being, an approach that is as holistic as possible is required, because it is just as important to have a line of attention/emotional support as it is to receive guidance to manage personal finances.

Lesson 1: we must review the priorities in terms of well-being, according to the characteristics of the collaborators. A representative case of this is what women currently value

For example, 41% of women consider that having complementary health and dental insurance would significantly increase their general well-being, in all countries, with Mexico and Chile standing out, with rates of 47% and 45%, respectively, according to the report. “What are the most important wellness trends for women?”, prepared by the first social unicorn in Latin America, Betterfly, a health and wellness platform for employees that transforms their healthy habits into social donations.

This high valuation on the part of Latin American women of the eventual benefit of complementary insurance is derived from the fact that the majority of the inhabitants only have access to the public health system.

Women want to increase activities associated with wellness. On average, 3 out of 10 indicate that they would do more activities of a sporting nature, but the case of activities that promote professional development stands out; Mexico stands out in this trend: 44% would like to take specialized courses or workshops and 43% would like to study languages, according to the report made by the social unicorn.

Lesson 2. If the path is open, how to promote greater well-being?

In conversation with compensation experts, one important initiative is to explore how to integrate self-care products into benefit plans, a critical tactic employers should consider, which is why organizations are encouraged to add these tactics into their benefit plans. .

There are really simple actions, but they require resources such as time and active listeningFor example, identify employee motivators and transform this into a healthy habit, from caring for food to planting a tree, and through this, the person knows that it impacts their lives and the lives of others.

Aon’s “Compensation Survey” reflects that wellness plans and compensation strategies are still a challenge for companies nationwide. The performance ranking focuses primarily on compensation based on salary or focused on life insurance or medical expenses: more than 90% of the companies provide Life Insurance and Major Medical Expenses.

It is not a question, beware, of eliminating the value that providing dynamic life insurance to employees can have that increases from their healthy habits, and at no cost to the company. This can be done by linking to technology, with the fact of downloading an app, through which the person joins healthier lifestyle habits, in addition to having insurance that helps increase their financial protection. By the way, and it is very valuable, loyalty and encouragement are generated for being in an organization.

The challenge, according to the Aon report, is that strategies focused on wellness or health lag behind. Bet on technologies that allow them to accelerate the incorporation of health measures, through actions as practical as that organizations become agents of change, providing a health and well-being benefit to their collaborators, is key.

With these tools, in addition to incorporating the activities in the collaborator’s environment, it is possible to measure well-being and promote a self-learning environment, which helps to comply with regulations (such as NOM-035 and NOM-037).

According to the findings of the final report «Workplace Wellness Programs Study», prepared by Randstad, the wellness programs (either wellbeing corporate) have a substantial impact on reducing healthcare costs, increasing productivity and retaining talent.

Another study, released by Harvard University, talks about the return on investment (ROI) of training programs. wellbeing. It concludes that, on average, for every dollar spent on employee wellness, medical costs are reduced by $3.27 and absenteeism is reduced by $2.73. This is an ROI of 6 to 1.2.

Not to mention the negative impact generated by having a high talent turnover. One of the main threats of not investing in wellness is that high performance teams become a distant premise. This is not something that seems ‘desirable’ for any organization with the aim of being a major magnet for talent and having powerful tools to retain work teams with a significant sense of loyalty.

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