April 2017

Why Invest in Employee Wellbeing?

Why Invest in Employee Wellbeing?
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This simple, clear factsheet outlines the evidence on why employers should consider employee wellbeing.

A number of studies point to the potential benefits for those employers who choose to invest in employee wellbeing.

Better performance
Better customer experience

Organisations with high levels of employee wellbeing, have outperformed the stock market by around 2%-3% per year over a 25 year period.

FTSE 100 companies demonstrating best practice in employee health and wellbeing show a higher than average shareholder return – 61% instead of 51%.

Reduced staff turnover

The average cost of filling an employee vacancy (recruitment, selection, temporary cover, redundancy payments, training andinduction) is £6,125

Reduced costs

The average annual cost of absence and presenteeism due to ill health is around 8% of a company’s wage bill.

Sickness absence costs UK employers about £692 per employee per year.

The total cost of sickness absence to UK business is around £15bn per year

Presenteeism (where employees work, but are under-productive due to poor emotional wellbeing) costs the UK economy £15bn annually.

Higher creativity

Organisations promoting health and wellbeing are seen as 3.5 times more likely to be creative and innovative.

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What does ‘good work’ look like?

What can employers do to create ‘good jobs’?


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