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©2019 by Wellness Works Canada.

EMPLOYEE WELL-BEING IMPACTS ORGANIZATIONAL PERFORMANCE

 

 

The evidence clear, employee well-being impacts performance at every level. Let's take a look at the impact on financial performance, operational effectiveness, customer experience and reputation.

The evidence clear, employee well-being impacts performance at every level. Let's take a look at the impact on financial performance, operational effectiveness, customer experience and an organization's reputation.

FINANCIAL

The current cost of lost labour from absenteeism and presenteeism due to mental illness in Canada alone is over $20 billion annually and rising (Conference Board of Canada, 2015).

Canadian companies lose an estimated $16.6 billion in productivity per year due to workers calling in sick, as a result of mental health (Mercer, 2018)

 

It is estimated that presenteeism costs Canadian businesses 15 to 25 billion dollars per year (SureHire, 2019).

CUSTOMER

Companies that lead in customer experience have 60% more engaged employees, and study after study has shown that investing in employee experience impacts the customer experience and can generate a high ROI for the company (Morgan, 2018)

OPERATIONAL

Companies with highly engaged employees outrank their competitor’s performance by 147% (Gallup, 2018).

According to Amy Edmondson, Harvard Professor, a culture of psychological safety enhances effectiveness and efficiency of teams and organizations (Havard Business Review, 2019).

REPUTATION

87% of people who like Starbucks are drawn because of how the company treats their employees (Morgan, 2018).

PEOPLE

Companies with highly engaged employees outrank their competitor’s performance by 147% (Gallup, 2018).

 

Employee well-being directly impacts employee productivity and performance (Sharma, 2016; Wu and Chen, 2017; Aston, 2011; Pinho et al, 2014 and Longenecker et al, 2009).

SOURCES

Harvard Business Review (2019). Creating Psychological Safety in the Workplace. Retrieved from https://hbr.org/ideacast/2019/01/creating-psychological-safety-in-the-workplace

Integrated Benefits Institute (2010). The Impact of Employer Health and Productivity Management Practice. Retrieved from https://ibiweb.org/?ACT=65&id=b0-teA-9WDwrId7c5xC4sZDrvWxwFAcSo7zZSXGGqx__IYoZSnXT1esvau7kAqzCxW3JFVIRFr_iK_fZ9X6PBg.. 

 

Kataria, A., Rastogi, R., & Garg, P. (2013). Organizational effectiveness as a function of employee engagement. South Asian Journal of Management, 20(4), 56-73. Retrieved from http://0-search.proquest.com.aupac.lib.athabascau.ca/docview/1519059074?accountid=8408

 

Kumar, S., McCalla, M., & Lybeck, E. (2009). Operational impact of employee wellness programs: A business case study. International Journal of Productivity and Performance Management, 58(6), 581-597. doi: http://0-dx.doi.org.aupac.lib.athabascau.ca/10.1108/17410400910977109

 

Kumar, S., & Prevost, J. K. (2011). An ounce of prevention: Revenue and cost economics of partnering with health and wellness services. Journal of Revenue and Pricing Management, 10(5), 401-423. doi: http://0-dx.doi.org.aupac.lib.athabascau.ca/10.1057/rpm.2009.52

 

Markos and Sridevi (2010). Employee Engagement: The Key to Improving Performance. International Journal of Business and Management. Vol. 5, No. 12. Retrieved from http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/6745/6332

 

Morgan, Blake (2018) The Un-Ignorable Link Between Employee Experience And Customer Experience. Retrieved from https://www.forbes.com/sites/blakemorgan/2018/02/23/the-un-ignorable-link-between-employee-experience-and-customer-

experience/#6c50ee448dc1.

 

Pinho, J. C., Ana, P. R., & Dibb, S. (2014). The role of corporate culture, market orientation and organisational commitment in organisational performance. The Journal of Management Development, 33(4), 374-398. doi: http://0-dx.doi.org.aupac.lib.athabascau.ca/10.1108/JMD-03-2013-0036

 

Sharma, P., Kong, T. T. C., & Kingshott, R. P. J. (2016). Internal service quality as a driver of employee satisfaction, commitment and performance. Journal of Service Management, 27(5), 773-797. Retrieved from http://0-search.proquest.com.aupac.lib.athabascau.ca/docview/1826443785?accountid=8408

SureHire (2019). What is Presenteeism Costing your Company? Retrieved from https://www.surehire.com/blog/what-is-presenteeism-costing-your-company/.

 

The Conference Board of Canada (2017) Wellness Initiatives: Trends in Organizational Health Management. The Conference Board of Canada.

 

Yu, K and Bang, S. C. (2013). What is the Impact of Improved Health to Organizational Performance? Cornell University. Retrieved from http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1046&context=student 

Wu, C., Chen, I., & Chen, J. (2017). A STUDY INTO THE IMPACT OF EMPLOYEE WELLNESS AND JOB SATISFACTION ON JOB PERFORMANCE. International Journal of Organizational Innovation (Online), 10(2), 252-269. Retrieved from http://0-search.proquest.com.aupac.lib.athabascau.ca/docview/1975986834?accountid=8408

 

Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.