Why corporate wellness is becoming the new black.

The cost of employee turnover is costly and if there is a cycle of negativity in an organisation then it is likely that the replacement of a staff member will not be an isolated case.

According to research, it costs nearly three times an employee’s salary to replace someone, which includes recruitment, severance, lost productivity, and lost opportunities. In fact some interesting facts:

  • Over 50 % of people recruited into an organisation will leave within 2 years.
  • One in four of new hires will leave within 6 months.
  • Nearly 70% of organisations report that staff turnover has a negative financial impact due to the cost of recruiting, hiring, and training a replacement employee and the overtime work of current employees that’s required until the organisation can fill the vacant position.
  • Nearly 70 % of organisations report having difficulties in replacing staff.
  • Approximately 50% of organisations experience regular problems with employee retention. (1)

Needless to say each organisation also wastes a lot of time, money and energy through time off due to sickness and/or presenteeism.http://dictionary.reference.com/browse/presenteeism

Contrary to what many believe money is rarely the main motivating factor for employees choosing to leave a job – opportunities for advancement, work/life balance, stress and lack of connection with a boss are cited as some of the top reasons. (2)

Employees are increasingly being drawn to companies that offer more than the standard 9-5 package. There are a number of ways as an employer to become prominent in your industry and attract high quality staff – one of these ways is to ensure each employee feels valued. A cost effective and effective way to do this is by introducing a wellness programme.

Research has demonstrated that there are a large number of measurable benefits to both employers and team members in implementing workplace health programs.

Indeed, fully a third of American companies now have “stress-reduction programs,” and the number is increasing by the day — in part because workers find unclogging their minds’ arteries to be so exhilarating. More than 30 percent of those enrolled in such a program at Aetna, the giant heath-care company, saw their levels of stress dropping by a third after only an hour of yoga each week.(3)

By becoming an advocate of wellness then the allusive work/life balance can become easier for employees to achieve; it can build a greater connection with management and the team and help to alleviate or at least better handle stress in the workplace.

Other benefits include:

  • increased workplace productivity
  • decreased stress
  • reduced absenteeism
  • improved employee satisfaction
  • improved recruitment, retention and engagement
  • reduced worker’s compensation costs.

Many organisations are seeing that wellness programmes are becoming a “need to have” rather than a “nice to have”. (4) Each day I speak with various organisations who if they haven’t already implemented a wellness incentive are in the process of implementing one. It is an effective method to become or remain an employer of choice and retain quality staff in an environment where good staff are proving more and more difficult to retain. On top of this taking time out for yoga, meditation or another form of stress reducing activity can have far reaching benefits including employees being able to focus more effectively.

So it’s hardly a surprise that employers of all industry sectors, demographics and sizes are now offering on-site wellness programs to boost morale and health around the office. In fact it’s a win:win situation for organisations and their employees.


  1. http://hr.blr.com/whitepapers/Staffing-Training/Employee-Turnover/Strategies-for-Retaining-Employees-and-Minimizing-
  2. http://www.inc.com/graham-winfrey/5-reasons-employees-leave-their-jobs.html
  3. http://ideas.ted.com/why-we-need-a-secular-sabbath/
  4. https://hbr.org/2010/12/whats-the-hard-return-on-employee-wellness-programs