Reason 1: Increased Productivity

Healthy employees are productive employees. A 2019 analysis by Deloitte Insights found that companies with good mental health programs made $1.62 for every $1 spent, thanks to higher productivity and fewer missed workdays due to mental health issues. To build on that: in the last year, 71% of Canadian workers reported that their mental health had affected their job performance.

Reason #2: Lower Absenteeism

Absenteeism from poor mental health costs Canadian employers an estimated $500k per week. Frequent absences disrupt workflows, reduce productivity, and increase the workload on other team members. Tailored benefits plans focusing on preventive care and wellness initiatives keep your team healthy and present. By reducing the frequency and duration of illnesses, businesses can maintain a stable and efficient workforce. This proactive approach not only reduces absenteeism but also fosters a more reliable and consistent work environment.

Reason #3: Improved Employee Morale

Companies that invest in employee health and wellness see a significant increase in employee morale, with 56% of employees agreeing that the benefits their employer provides make them feel valued.

Employees who feel their employer cares about their health and well-being are significantly more engaged at work. Engagement is a critical factor in employee performance and retention. Comprehensive wellness programs, mental health support, and flexible benefits options cater to the diverse needs of your workforce. When employees feel valued and supported, their morale and job satisfaction increase, leading to higher levels of engagement and productivity.

Furthermore, a report found that a large majority of employees (91%) appreciate how their benefits plan positively affects their overall health and wellness, providing them a sense of financial health and security.

Reason #4: Higher Employee Loyalty

Personalized benefits plans foster a supportive and loyal workforce, reducing the risk of losing key team members to competitors. Comprehensive and meaningful benefits show your employees that you value their contributions and are invested in their long-term success, which in turn builds loyalty and commitment to your company. This is best exemplified as employees’ eagerness to recruit on the company’s behalf, and studies have shown 89% of workers at companies that support well-being initiatives are more likely to recommend their company as a good place to work.

Reason #5: Reduced Turnover

High employee turnover is both costly and disruptive, with Canadian businesses reporting an average of $22,279 in recruiting costs and lost productivity, with 18% saying it costs their company $50,000 or more per year. This costly expense only increases with company size.

Seen from another angle: replacing a mid-level employee can cost about 20% of their annual salary. This means that replacing a manager earning $60,000 per year can cost around $12,000. On the other hand, replacing high-level employees, who have larger salaries and specialized training, can cost up to 213% of their annual salary. This translates to a staggering $213,000 to replace a C-Suite Executive earning $100,000 per year. 

Investing in robust health and wellness programs can significantly mitigate these high costs. A study showed 73% of employees with a health benefits plan would stay with their current employer even if offered more money elsewhere.

Reason #6: Enhanced Recruitment

Boosting your company’s health benefits not only cultivates loyalty among your existing team but also significantly impacts your recruitment efforts. It’s reported that 80% of employees consider a company’s health benefits before accepting a new role. This makes comprehensive benefit packages a powerful tool in attracting top talent and standing out in a competitive job market.

Reason #7: Reduced Workers’ Compensation Claims

Employee wellness programs can lead to a significant reduction in workers’ compensation and disability management claims. Mental health conditions account for approximately one-third of short-term and long-term disability claims, as well as 70% of the total costs associated with workplace disability.

This issue is often met with misunderstandings, as 40.9% of workplaces cited as having a stigma towards mental health—with 24.2% reported having it to a very large extent.

Even simple wellness programs that acknowledge mental health and focus on preventative care and healthy lifestyles can reduce the incidence of stress, anxiety, and burnout that lead to disability. This improvement in workplace wellness maintains a healthier culture and can lead directly to a decrease in costs.

Reason #8: Perceived Value of Health Benefits

Employees often perceive health benefits as more valuable than cash bonuses. For example, 73% of British Columbians would rather have health benefits over a $10,000 raise, and 77% of Canadian employees prefer a job with benefits over a higher-paying job without benefits.

Health benefits provide a sense of security and well-being that a cash bonus cannot match. Offering comprehensive health benefits shows employees that their employer cares about their long-term health and financial stability, which can significantly enhance job satisfaction and loyalty.

Are your wellness investments paying off? 

Like any benefit you offer employees, your options are limited by your budget, and like any investments, your return differs based on where you put your money. To understand what health & wellness fit your group, and how well they’re performing, you have to first understand your goals. For example:

• Are you hoping to win over new hires?
• Are you hoping to retain employees and reduce turnover?
• Are you hoping to improve morale or productivity?

Different goals require different investments, so if you’re hoping to get a lot of value without spending money on every possible perk, it’s time to get strategic with your benefits.

Consider a New Approach to Benefits

Before making new decisions about health and wellness programs, get clear on your goals, and learn about what is available out in the market. As a starting point, we recommend talking to someone with experience in Total Rewards Management. This uniquely-trained human resources professional can help plan your compensation structure from the ground up to provide the best blend of salaries, benefits, and working experiences for your unique group of employees.

We at EIO call that expert an EIO Advisor—a cross-trained HR manager & benefits expert who specializes in optimizing your employee investments.

Talk to an Advisor Today

The longer you wait to optimize your employee investments, the more opportunities you miss to save money and improve your team’s well-being. Working with an EIO Advisor means accessing a wealth of expertise and resources that can transform your benefits from a sunk cost into a strategic investment. 

Investing in employee health and wellness is no longer optional; it’s a necessity for staying competitive in today’s market. Let EIO help you create a healthier, happier, and more productive workforce. Book a Discovery Call today to learn more about how we can optimize your benefits and support your business goals.