Great to have you part of our growing Corporate Wellness Tribe!
In todays insight I’ll give you hands-on tips on thé biggest challenge I receive from the professionals I work with on a daily basis.
I am a Digital Nomad in New-Zealand and last night, in the middle of the night, together with our Community Creator in Belgium Charlotte we created this business case for amazing company that’s consciously examining all possible corporate Wellness options with Return on Investment.
We focused on this biggest challenge: the why of Corporate Wellness, the business why.
Before even creating what or how.
Although there was an estimation budget.
All the dots need to be aligned FIRST.
A great foundation.
A vision on the “why“ that is clear in NUMBERS.
Because that’s what convinces management and determines the SUCCES of your campaign. Or whatever you do in your company.
A clear goal, in numbers.
And then feel your way through, using the law of attraction to manifest with ease.
This clear goal is the question all Corporate Wellness Manager struggle with.
“It’s not ok to put “health and wellbeing” in numbers is it?”
Why would everything, even your companies most important goal: sales, be put in numbers and goals, but not the health of your teams. Isn’t that even the most crucial number in your company?
This is the question that’s DIRECTLY related to the topics of the first 2 Corporate Wellness guides, check these first out here if you haven’t read them or want a recap, BEFORE reading further in this one:
Let’s talk Return-On-Investment.
One of my favorite topics!
Start with your company size.
Calculate for a group of people, a couple of departments or the whole company.
Keep in mind your TARGET GROUP (which is, as you most likely know, the marketing language for the people you want to reach with your corporate wellness campaign).
There’s 4 major departments that will FEEL and SEE the effects of Corporate Wellness:
> Think about the costs to attract new professionals
> Engagement / Disengagement / Bore-Out etc… (sitting at a desk does NOT equal productivity, how EXCITED is everyone, how fulfilling is each ones’ job. This can be put in numbers to follow the growth)
> Voluntary Staff Turnover (how long do people stay. It’s become a norm in Millennial’ Mindset to stay 1-3 years but… how much does that COST your company? What processes can be implemented to lower this cost (when does someone become productive, how can you EMPOWER a new coworker to be productive from day 1, yes you can!) and how can you prevent your best coworkers to leave (the signs are there months before they do BUT as a manager / company leader you are focused on the goals and often don’t have the time to focus on staff turnover, this is where the Corporate Wellness Manager takes responsibility)
Up to 70% of all dis-ease is preventable.
But currently only on average 1-3% of government health budgets (in Europe) are spent on prevention.
How about in your company? What % is spend on effective prevention?
Healthy people, happy people will make your sales go up up up up!
This can be put in numbers too.
Mail me if you want this calculation.
Happy coworkers thrive, have creativity and GREAT ideas! Make R&D happy and create a business case to involve coworkers in securing the future of your company.
I’ll take 2) Prevention as an example as this is what last night’s meeting was all about and is still flowing through me!
Here’s an overview of all possible indicators.
So we will calculate for Prevention / Absenteeism:
Disclaimer 1: these are all fictional numbers, mail us for an accurate calculation for your company.
Disclaimer 2: we gave all examples in EUR but the exact calculation can also be done in CAD or AUD or any other currency.
Decide on 3 key indicators:
1) How many days on average are people in dis-ease?
Belgian statistics show about 15.35 days.
Use this average or your company’s numbers (HR can give them).
2) Cost per day being absent
Here’s 2 options:
A) You only take in account Direct Cost of the Wage. We usually recommend, depending on what type of work, to take around 300 EUR per day. But you know best!
B) You take in account ALL costs related to absenteeism: administration costs, replacement, lower morale… In Belgium this has been estimated at 875 EUR per day.
3) How much can you win by decreasing dis-ease
This is the magic prediction!
So! There’s always be a percentage 1%-3% of “healthy” absenteeism, but most companies have quite a way to go there! (If you don’t, great, than use other KPI’s for Corporate Wellness like increasing engagement or sales).
From our own projects and worldwide research we advise customers to take 2 scenario’s: a decrease of 5% and a decrease of 10%.
Because you have to keep in account, absenteeism is mostly rising. So if you can AND stop the increase AND have a decrease, it’s double work hey!
In our above scenario, you can see a business case for
> 500 coworkers
> Average 15.35 days absent
> Average DIRECT cost of 300 EUR per day
> Scenario 1 = 10% decrease in absenteeism, this means everyone is on average 1.5 days less absent.
OK. Big one here.
This business case is NOT created to CONTROL people’s number of days of disease. Not at all. Rather the opposite. This business case is created by companies, to facilitate budget to EMPOWER coworkers to be able to grow personally, have space. This business case will make sure everyone get freedom, space, time and the necessary resources, tools, … to effectively create healthy Corporate Wellness. So when other decisions on workload, tasks,… are being made, this KPI is taken in account.
Ok got that straight! 😉
You might feel this resistance when offering this business case to your management too “oh but that’s not why we do it, we just care” is the main resistance..
Yet still, take a look at the budget spend, a business case is crucial to align with the art of money, money always follows and gives insights into true priority.
In this business case, currently there is an annual cost of about 2.3mi EUR on absent days. Wouldn’t you rather have no absent days and use this budget as “holiday”, to own this budget that it’s used as extra holidays to coworkers? Again I’m not saying coworkers aren’t in dis-ease, off course they are, BUT 70% is preventable and has a deep cause that surfaces when an absent day is checked in.
Imagine this saving of 10%, the absenteeism cost would still be 2mi per year for 500 coworkers (how big is your company?), but the saving is already 230k EUR. Nice one to just mention to your manager no? 😉
Now by using only direct costs, this business case is quite conservative, but let’s make it even more safely attainable goal: 5% decrease in absenteeism, which would be on average 6 hours less absence per person.
This means a possible saving of 115.000 EUR.
Now to the magic.
If we don’t do anything.
Absenteeism costs will most likely raise.
So it’s a ticking clock.
For 500 coworkers on average a cost in between 192k eur & 560k eur per month! and in most of the world, increasing…
Now let’s go the business case.
Imagine investing just 10% of the monthly cost to prevent absenteeism.
19k – 56k EUR
This is ENOUGH to have an effective Corporate Wellness program with a return on investment, when this program matches the 4 major pillars of ROI succes based on Harvard Business Review:
1 Strategic approach with a clear project leader creating management buy-in
2 Participation rates >80% by co-creation with participants
3 Focus on long term habit creation by educating participants
4 Clear day-to-day reporting
(You can learn more in our Dreamjob Level 1 course)
So just 19k-56k.
10% of the current monthly cost.
Return can be in just 6 months.
What other investments does your company have with such high risk when NOT investing and quick return when investing?
It’s a no-brainer.
And these numbers will remove all doubt.
This time last year I spoke for an amazing group of Financial Leading Ladies from BELRIM in Belgium. And the above was the main eye-opener.
So now it’s up to you, to open eyes, to create awareness.
Grounded with numbers, driven by passion for people from your heart.
This next part is: about how we’d love to serve you in your & your company’s journey
We at Moov-IT are proud to offer a full ecosystem of services!
We help you to deepen your business case
1) Create YOUR business case and get budget easily via our signature course “Start2Dreamjob”. You’ll get our ROI-calculator tool that helps you to create your business case in no time full of statistics and averages. By filling in your team size you already get results for all company areas!
It’s five episodes and the fourth episode “Business Case” is more than 20 pages of exercises going deeper into all of the above. To create YOUR business case for 2019.
The e-learning module consists of video tutorials, templates and personal support.
You do this at your time, at your pace.
This business case calculator alone took us 18.000 EUR to research and develop, luckily together with an amazing company in Belgium!
But start with playing with this business case.
If you already have a business case and want to go deeper, have questions, drop me and my colleagues from our CommunityCreator team an email and we will gladly listen to your needs, offering an extra perspective.
And if you have any other questions, mail me, I answer every mail.
Have an amazing 2019.
“One is in flow when action come effortlessly”.
Love & light,