The ROI of worker well-being

by Rebecca Knight, Business Insider

This article is part of "Workforce Innovation," a series exploring the trends and leaders shaping enterprise transformation.

With a new generation of workers bringing fresh sensibilities and an increasing desire for work-life balance and mental-health support, organizations across the US are scaling up employee well-being programs to meet the demands of the post-pandemic era.

Companies spent $51 billion on employee wellness in 2020, a figure that's projected to rise to $100 billion a decade from now, according to a report last year by Wellable, a corporate healthcare platform. Initiatives range from health plans and perks to employee-resource programs and digital tools. All share a common goal: fostering a healthier, happier, and more productive workforce.

"When employees feel they're being invested in and supported, they're more likely to experience greater job satisfaction and an improved sense of well-being," Charlie Tharpe, a professor at Boston University's Questrom School of Business, said.

Tharpe added that employees who feel supported are likely to put more effort into their work, so "companies with a healthy and engaged workforce can reap substantial benefits."

Companies need to achieve a balanced mix of well-being offerings to address the shifting needs of their workers, Tharpe said. This means tailoring programs and plans that resonate with employees and align with company values and mission, all while maximizing return on investment and yielding measurable benefits such as reduced healthcare costs. Studies suggest that employee well-being is linked to improved engagement and commitment and can also play a key role in attracting and retaining talent and increasing productivity.

Combating healthcare costs, boosting mental health

Some companies are adopting well-being initiatives to confront mounting healthcare costs, with the added benefit of improving mental-health support for their employees.

World Wide Technology, a St. Louis-based technology-services provider, set up two health clinics for employees in 2015 to address increasing insurance costs from urgent and emergency-care visits. After surveying its US workforce, one-third of which is made up of hourly employees, the company found that workers did not visit primary-care doctors because of time constraints and the need to use paid time off. In response, WWT launched free on-site clinics staffed by a doctor, nurse practitioners, and medical assistants. The clinics were available to all employees, regardless of their insurance plan, and the employees' insured dependents.

In 2021, as demand for mental-health services grew during the pandemic, WWT expanded its clinical offerings to include counseling and behavioral-health services. "Even before COVID, our leadership focused on destigmatizing talking about mental health," John Rocco, the vice president of total rewards at WWT, said. "We want to make sure our employees have access to the support they need."

WWT estimates it's seeing a return on investment of about two-to-one: For every dollar invested in these clinics, the company said it saves about $1.50 in insurance costs and gains additional productivity savings.

"The way we see it is that if our employees are using the services, they're getting value out of them," Rocco said.