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The ROI of Workplace Well-Being

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The impact of work and place on employee well-being, engagement, productivity, and more.

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The ROI of Workplace Well-Being

  1. 1. The ROI of Workplace Well-Being © 2015, Global Workplace Analytics
  2. 2. © 2015, Global Workplace Analytics
  3. 3. Global Workplace Analytics A Recognized Authority © 2015, Global Workplace Analytics
  4. 4. Proprietary Research Library with Thousands of Data Points © 2015, Global Workplace Analytics
  5. 5. Custom Business Case © 2013, Global Workplace Analytics © 2015, Global Workplace Analytics
  6. 6. Download at: GlobalWorkplaceAnalytics.com/whitepapers What’s Good for People? Moving from Wellness to Well- Being © 2015, Global Workplace Analytics
  7. 7. © 2013, Global Workplace Analytics Net Benefit What is ROI? Cost ROI © 2015, Global Workplace Analytics
  8. 8. Maslow © 2015, Global Workplace Analytics
  9. 9. Esteem Belonging Safety Physiological Self Actualization © 2015, Global Workplace Analytics
  10. 10. Esteem Belonging Safety Physiological Self Actualization © 2015, Global Workplace Analytics
  11. 11. Hygiene Motivators 8131 1969 Factors contributing to job dissatisfaction Factors contributing to job satisfaction Hertzberg © 2015, Global Workplace Analytics
  12. 12. MotivatorsHygiene Achievement Recognition Work Itself Policies Supervision © 2015, Global Workplace Analytics
  13. 13. Esteem Belonging Safety Physiological Self Actualization © 2015, Global Workplace Analytics Disconnected
  14. 14. ü  Lighting ü  Daylight ü  Temperature ü  Food ü  Movement ü  Air Quality ü  Hydration ü  Ergonomics ü  Nature ü  Cleanliness © 2015, Global Workplace Analytics
  15. 15. © 2015, Global Workplace Analytics
  16. 16. ü  Financial ü  Health ü  Conflict ü  Stress ü  Noise ü  Privacy ü  Choice ü  Control © 2015, Global Workplace Analytics
  17. 17. 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 © 2015, Global Workplace Analytics
  18. 18. Belongingness Needs: §  Friendship §  Community §  Connection §  Caring §  Contribution © 2015, Global Workplace Analytics
  19. 19. Esteem Needs: §  Pride §  Respect §  Trust §  Growth §  Strengths © 2015, Global Workplace Analytics
  20. 20. Self Actualization Needs: §  Self-Acceptance §  Morality §  Problem Solving © 2015, Global Workplace Analytics
  21. 21. © 2015, Global Workplace Analytics 1)  Value of People 2)  Why 3)  ROI/Business Case
  22. 22. © 2015, Global Workplace Analytics Why is this so hard?
  23. 23. People are expensive! © 2015, Global Workplace Analytics
  24. 24. Math Ahead REMAIN CALM WARNING © 2015, Global Workplace Analytics
  25. 25. $100K per year = $50/hour about $1/minute 8 min/day ($8) x 250 days/year = $2,000/yr © 2015, Global Workplace Analytics
  26. 26. $100,000 x 6 = $600,000 $600,000 = $300/hour or $5/minute 8 min/day ($40) x 250 days/year $10,000/yr © 2015, Global Workplace Analytics
  27. 27. © 2015, Global Workplace Analytics© 2015, Global Workplace Analytics
  28. 28. 1)  Value of People 2)  Why 3)  ROI/Business Case © 2015, Global Workplace Analytics
  29. 29. What’s Driving Change? Well-Being •  Costs (US Only) •  Productivity •  Presenteeism •  Absenteeism •  Engagement © 2015, Global Workplace Analytics
  30. 30. What’s Driving Workplace Change? §  Attraction/Retention §  Costs §  Engagement §  Productivity/Performance §  Innovation §  Collaboration © 2015, Global Workplace Analytics
  31. 31. Global Workplace Analytics Frank Van Massenhove © 2015, Global Workplace Analytics
  32. 32. Collateral Savings © 2015, Global Workplace Analytics
  33. 33. + Well-Being +Engagement Working Well, Buck Consultants/Xerox 2014 = Lower Costs = Attraction/Retention = Productivity/Performance © 2015, Global Workplace Analytics
  34. 34. © 2015, Global Workplace Analytics 1)  Value of People 2)  Why •  Well-Being •  Engagement •  More 3)  ROI
  35. 35. % of Workforce © 2015, Global Workplace Analytics
  36. 36. Unhealthy US Workers Absenteeism Costs $153B, Gallup 2013 A least one chronic disease © 2015, Global Workplace Analytics
  37. 37. 86% Unhealthy US Workers Absenteeism Costs $153B, Gallup 2013 © 2015, Global Workplace Analytics
  38. 38. ©2015,GlobalWorkplaceAnalytics The Health of Wellness, Willis, 2014 32%
  39. 39. Only 11% © 2015, Global Workplace Analytics The health of wellness, Willis, 2014
  40. 40. Wellness Budget: $0 = 35% < $100 = 42% > $150 = 17% TheWillisHealthandProductivitySurveyReport © 2015, Global Workplace Analytics
  41. 41. ROI = 144% to 3,000% © 2015, Global Workplace Analytics
  42. 42. Healthcare Budget $16,000 pp/year © 2015, Global Workplace Analytics
  43. 43. Wellness Budget >$150 Proven ROI Healthcare Budget $16,000 pp/year NO Proven ROI © 2015, Global Workplace AnalyticsThe Willis Health and Productivity Survey Report
  44. 44. 86% less productive © 2015, Global Workplace Analytics
  45. 45. 88% © 2015, Global Workplace Analytics
  46. 46. Claims CDC.gov, Chronic Disease © 2015, Global Workplace Analytics
  47. 47. Chronic Risk Factors 1) Obesity 2) Inactivity 3) Stress 4) Food choices 5) Tobacco 6) Depression © 2015, Global Workplace Analytics
  48. 48. © 2015, Global Workplace Analytics
  49. 49. 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
  50. 50. Obesity Trends* Among U.S. Adults 1991 No Data < 10% 10%–14% 15%-19% © 2015, Global Workplace AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC
  51. 51. No Data <10% 10%–14% 15%-19% 20%+ Obesity Trends Among U.S. Adults 1997 © 2015, Global Workplace AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC
  52. 52. No Data <10% 10%–14% 15%–19% 20%–24% ≥25% Obesity Trends Among U.S. Adults 2001 © 2015, Global Workplace AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC
  53. 53. <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Obesity Trends Among U.S. Adults 2005 © 2015, Global Workplace AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC
  54. 54. Obesity Trends Among U.S. Adults 2010 <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% © 2015, Global Workplace AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC
  55. 55. Obesity Trends* Among U.S. Adults 1991 No Data < 10% 10%–14% 15%-19% © 2015, Global Workplace AnalyticsSource: Behavioral Risk Factor Surveillance System, CDC
  56. 56. © 2014, Global Workplace Analytics
  57. 57. © 2015, Global Workplace Analytics
  58. 58. © 2015, Global Workplace Analytics Desk by Altwork
  59. 59. •  Diabetes •  Heart attack •  Stroke •  Premature death © 2015, Global Workplace Analytics
  60. 60. © 2014, Global Workplace Analytics
  61. 61. © 2015, Global Workplace Analytics
  62. 62. © 2014, Global Workplace Analytics
  63. 63. © 2014, Global Workplace Analytics
  64. 64. 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
  65. 65. 3x to 10x more unhealthy days/month © 2015, Global Workplace AnalyticsUnhealthy US Workers Absenteeism Costs $153B, Gallup 2013
  66. 66. •  Absenteeism •  Medical/Pharma •  Workers Comp •  Disability © 2015, Global Workplace Analytics
  67. 67. Productivity Presenteeism © 2015, Global Workplace Analytics 25% to 30% Absenteeism Medical/Pharma Workers Comp Disability
  68. 68. Productivity Presenteeism © 2015, Global Workplace Analytics +++ $$$ Engagement/Morale Overtime Overstaffing Delays Customer inconvenience Turnover Accidents Absenteeism Medical/Pharma Workers Comp Disability
  69. 69. $ $ $ $ $ © 2015, Global Workplace Analytics
  70. 70. Presenteeism Pretend I’m not here. © 2015, Global Workplace Analytics
  71. 71. $- $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 ©2015,GlobalWorkplaceAnalytics $11K $18K pp/yr
  72. 72. © 2015, Global Workplace Analytics
  73. 73. Health and Work Performance Questionnaire (HPQ) © 2015, Global Workplace Analytics
  74. 74. $- $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 ©2015,GlobalWorkplaceAnalytics • Presenteeism • Absenteeism • Healthcare Annual Cost Per Person with Condition 82 minutes a day 23 minutes a day
  75. 75. $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Obesity Stress Inactivity Smoking Depression • Presenteeism • Absenteeism • Healthcare Per Capita: $3,800 $3,400 $2,750 $1,450 $1,270 © 2015, Global Workplace Analytics
  76. 76. What’s the bottom line? $13M/yr Obesity $3.8M Stress $3.4M Inactivity $2.8M Smoking $1.4M Depression $1.3M © 2015, Global Workplace Analytics
  77. 77. Obesity 23 Stress 22 Inactivity 16 Smoking 9 Depression 8 Impact in Man Years = 78 © 2015, Global Workplace Analytics
  78. 78. 78 Man Years 8% of Staff
  79. 79. © 2015, Global Workplace Analytics 1)  Value of People 2)  Why •  Well-Being •  Engagement •  More 3)  ROI
  80. 80. Esteem Belonging Safety Physiological Self Actualization © 2015, Global Workplace Analytics
  81. 81. Discretionary Effort © 2015, Global Workplace Analytics
  82. 82. 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
  83. 83. 2014 Global Workforce Study At a Glance, Towers Watson 24% Disengaged © 2015, Global Workplace Analytics
  84. 84. 48% 45% 41% 37% 28%Shrinkage Turnover Defects Absenteeism Accidents Engagement Reduces… State of the American Workforce, Gallup 2013 © 2015, Global Workplace Analytics
  85. 85. Engagement Increases… Profits Productivity Customer Satisfaction 10% 21% 22% State of the American Workforce, Gallup 2013 © 2015, Global Workplace Analytics
  86. 86. © 2015, Global Workplace Analytics 1)  Value of People 2)  Why •  Well-Being •  Engagement •  More 3)  ROI
  87. 87. 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 © 2015, Global Workplace Analytics
  88. 88. More: Attraction/Retention © 2015, Global Workplace Analytics Make me an offer.
  89. 89. More: Resilience © 2015, Global Workplace Analytics
  90. 90. •  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 © 2015, Global Workplace Analytics
  91. 91. The Cost Not Doing It •  Reduced competitiveness •  Employer of choice •  Great place to work •  Legal exposure •  Corporate reputation •  Shareholder value © 2015, Global Workplace Analytics
  92. 92. Sustainability © 2015, Global Workplace Analytics
  93. 93. © 2015, Global Workplace Analytics 1)  Value of People 2)  Why •  Well-Being •  Engagement •  More 3)  ROI
  94. 94. The ROI of WELL/well © 2015, Global Workplace AnalyticsImage: ©www.tOrange.us Creative Commons
  95. 95. 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
  96. 96. Worth the Investment? 3.60 © 2015, Global Workplace AnalyticsCase Study: CBRE (wellcertified.com)
  97. 97. The Cost of WELL™? 60 rolls © 2015, Global Workplace Analytics
  98. 98. The Cost of WELL™? $51/person/yr $649 $150 $77= © 2015, Global Workplace Analytics
  99. 99. © 2015, Global Workplace Analytics Well-Being Savings Calculator™ © 2015, Global Workplace Analytics
  100. 100. © 2015, Global Workplace Analytics Well-Being Savings Calculator™ Project Assumptions © 2015, Global Workplace Analytics
  101. 101. © 2015, Global Workplace Analytics Well-Being Savings Calculator™ Risk Factor Prevalence Assumptions © 2015, Global Workplace Analytics
  102. 102. Well-Being Savings Calculator™ Results © 2015, Global Workplace Analytics Org. Cost/Yr Years to BE 0.25 0.13 0.1
  103. 103. .9 1.2 1.2 .5 © 2015, Global Workplace Analytics
  104. 104. >.25 Minutes/day .1 People © 2015, Global Workplace Analytics
  105. 105. Work PracticesWork Policies Work Culture © 2015, Global Workplace Analytics
  106. 106. © 2015, Global Workplace Analytics
  107. 107. IT Benefits Sustainability Advisors © 2015, Global Workplace Analytics
  108. 108. Place People © 2015, Global Workplace Analytics
  109. 109. Let us help you make the business case for agile workplace strategies, wellness, well-being and more. Kate Lister President Global Workplace Analytics Kate@GlobalWorkplaceAnalytics.com @FutureWorkforce © 2015, Global Workplace Analytics
  110. 110. $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? © 2015, Global Workplace Analytics

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