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

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 8131
1969
Factors
contributing to job
dissatisfaction
Factors
contributing to
job satisfaction
Hertzberg

MotivatorsHygiene
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

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

Frank Van Massenhove

Collateral
Savings

+ Well-Being
+Engagement
Working Well, Buck Consultants/Xerox 2014
= Lower Costs
= Attraction/Retention
= Productivity/Performance

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

©2015,GlobalWorkplaceAnalytics
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%
TheWillisHealthandProductivitySurveyReport

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 AnalyticsThe 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 AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC

Obesity Trends* Among U.S. Adults
1991
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%
2001

<10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%
2005

2010
<10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%

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 AnalyticsUnhealthy 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
$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
• Presenteeism • Absenteeism • Healthcare
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
• Presenteeism
• Absenteeism
• Healthcare
Per Capita:
$3,800 $3,400 $2,750 $1,450 $1,270

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

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

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

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

Risk Factor Prevalence Assumptions

Results
Org.
Cost/Yr
Years
to BE
0.25
0.13
0.1

.9
1.2
1.2
.5

>.25 Minutes/day
.1 People

Work PracticesWork 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
Kate@GlobalWorkplaceAnalytics.com
@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?

The ROI of Workplace Well-Being

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