ROI in improving employee well-being – ORH

by Yvonne Vargas Glocalthinking HR Blogger.

Organizations in Mexico are increasing telecommuting or home office as 65% of them face a talent shortage and to cover the vacancies they allow flexible schemes. However, telecommuting will be different in Mexico based on the rules issued by the Ministry of Labor (STPS) and which are outlined in the draft NOM-037. Henceforth, for example, the norm establishes that the employer will have to authorize the place or places from which work can be done. But in addition to presenting how these rules will be applied, an important question is how do we work on employee communication and other actions so that there is well-being in this work environment?

Because it is a fact that cooperation without commitment is expensive

Employees who feel disengaged, rather disconnected from the organization, create many negative and costly consequences. According to the report “State of the Global Workforce,” Gallup, organizations face a commitment crisis between the company’s purpose and that of the employee, as only 15% of workers worldwide report being truly committed to their work.

The problem is not insignificant

And it’s that commitment goes beyond how happy they feel in their work. Today, companies consider the state of mind that exists in the workplace and productivity as important parts of employee well-being, which also includes personal, financial and health issues.

In such a tumultuous global moment, the physical and mental well-being of employees has become a central issue. A large proportion of the global workforce – 45% – have expressed that the COVID-19 pandemic has significantly affected their lives.

43% reported feeling stressed most of the day, compared to 38% who mentioned this condition before the pandemic.

What measures can be implemented in the workplace?

The following tips can help boost workforce morale:

Organize regular 1-2-1 meetings. This includes updating with them regularly, blocking off a spot on the agenda so you can hear what they think. This builds trust and allows them to feel supported.

Want an authentic and genuine conversation? One way to track progress or change in employee engagement can be by holding weekly priority review meetings and holding a longer meeting each quarter. For this more in-depth meeting, they may be asked to fill out a short survey asking how they feel in general, about their role, and what they like or dislike at the moment. This will allow you to have a longer-term perspective on how best to engage in conversations with them. It will also allow you both to work on joint long-term goals.

For this meeting you can take a more “emotional” approach, starting with questions like: «how are you?», «what are you going through these days?, so you can get better answers. It’s important to take advantage of these opportunities to praise their work, encourage them, and show your appreciation.

It also works promoting a framework compatible with family and personal life. A family-first approach may not suit all employees, but the principles remain the same for all: be flexible enough to support personal circumstances. This will help build loyalty and trust among employees.

For many companies, working from home or adopting hybrid models is now the norm. For them to work, you need to adopt an approach that creates a work-life balance.

A sense of “person first” makes employees feel less pressure to adhere to strict workplace policies and therefore be more productive.

Research from the International Center for Work and Family at the School of Business IESE Business School found that people who work in a family-friendly environment perform up to 19% better than those who don’t.

Having specific health and wellness goals also helps. The present moment, with remote working schemes, requires a digital solution that reaches and connects employees wherever they are. Must to take advantage of technology and artificial intelligence to meet, on the one hand, personal health and wellness needs and, on the other hand, to have measurable results for the organization.

It’s about stimulating long-term lifestyle changes:

• Apart from organizing a meditation and yoga class every now and then, you can suggest long-term healthy lifestyle schemes. It is important to set small but meaningful goals.
• Allow your contributors to choose goals that are important to them.
• Reward them for achieving their goals.
• Create a community that recognizes and celebrates achievement.
• Help employees review and refocus if they burn out along the way.

On the other hand, while we all agree that investing in people through wellness initiatives is important, business leaders often require a measurable return on their investment (both in time and budget).

As a result, HR is tasked with having a conversation about an equation very complicated so that the CEO or committee can see how the implemented welfare programs affect the results of their organization.

The task: show this investing in wellness is a core business strategy which generates significant value on investment.

Go from ROI to VOI

In terms of welfare, the definition of ROI can be as narrow as reducing loss costs. Although the objectives of the program are likely to be much broader, for this reason the first recommendation is to address how ROI is defined in the organization and then adjust to metrics that are more important as evidence of ROI. the investment.

Value of Investment (VOI) as a model it is more complete, flexible and adaptable to the specific needs of the company. It’s a model that covers business and talent issues like absenteeism, safety, performance and productivity, turnover, and even quality and customer satisfaction.

If employees aren’t doing their best work every day—or don’t feel physically, mentally, and emotionally ready for work—nothing else matters. If they don’t stay physically active, eat healthy, sleep well, and manage their stress, they will lack focus, energy, and drive to succeed.

When talking about the value of the investment, it is important to remember that studies conducted globally show that the benefits (immediate returns) that come from investing in a wellness plan

Immediate benefits:

31% fewer sick days.

50% less injuries.

13.4% reduction in claims costs.

Business efficiency and productivity

36% increase in intent to stay employed.

49% more productive.

46% more engaged in the organization.

29% reduction in turnover