As business leaders, we all know that the question of how to maximise ROI permeates every decision we make. We also understand the importance of investing in our employees’ health and wellbeing. But, when it comes to the latter, this traditional approach feels less comfortable and familiar, and so can often fall short. We feel less inclined to ask how these people-focused investments yield the right returns. We need to shift our perspective and view employee wellbeing not necessarily as a cost centre, but as a fundamental driver of business success.
The pitfalls of one-size-fits-all policy
For years, many organisations have relied on standardised health programs that tick boxes but fail to deliver meaningful impact. These well-intentioned initiatives often become mere exercises in compliance rather than catalysts for change. But why?
The answer lies in their inability to address the diverse needs of our workforce. A gym discount or a generic wellbeing app, while valuable, barely scratches the surface of what employees truly need. These programs typically struggle to engage more than 10% of the workforce – a figure that’s considered “good” for many employee benefit propositions. Should we really be satisfied with reaching just a fraction of our people?
On the diversity point, these programs often attract those who are already health-conscious, missing the opportunity to support those who could benefit most. The result? A disconnect between investment and impact, leaving HR teams frustrated and employees not just underserved, but feeling undervalued.
The power of personalisation
So, what’s the solution? In my experience, it starts with understanding the needs of your workforce and also the pressures that they can face. To work within those parameters requires flexibility, personalisation, and accessibility. These might be buzzwords but there’s a reason they’re so well-versed, and that’s because they’re the foundational elements of high-impact employee wellbeing solutions.
We need to move closer to a scenario where every employee has access to a tailored suite of health and wellbeing services, perfectly aligned with their individual needs. Where a young parent can easily access childcare support, while their colleague caring for older parents can tap into eldercare resources. Where mental health support is just as accessible as physical health services, and where preventative care is given the same priority as treatment.
This has often been viewed as a utopian vision and too complicated and expensive to put into practice, but as we build a better understanding of the worlds that our employees live in and what they need outside of office beanbags and coffee discounts, it’s actually entirely achievable with the right approach, and tools.
By offering a wide range of options and empowering employees to choose what’s relevant to them, we can dramatically increase engagement and impact.
The ROI of wellbeing
When we talk about the return on investment in employee wellbeing, we need to look beyond the immediate, easily quantifiable metrics. Yes, employee engagement figures can be helpful and easier to measure. But the impact on employee retention is equally important, As is our ability to attract top talent, and reduce absenteeism and presenteeism. These areas while harder to measure, needs to be considered (and measured) to fully understand the power of supporting employees with impactful benefits
Consider this: caregiving, along with mental health and physical pain, is one of the top three reasons people leave their jobs. In fact, the same research shows that 61% of senior leaders have left a job due to caregiving conflict. The cost of replacing a skilled employee can range from 50% to 200% of their annual salary. Suddenly, investing in comprehensive caregiving support doesn’t seem so extravagant, does it?
Or think about the gender pay gap. Women are three times more likely to work part-time than men, often due to caregiving responsibilities. By age 64, men have on average £139,451 more in pension savings than their female counterparts. By providing flexible work arrangements and robust caregiving support, we can help level the playing field and retain valuable talent.
The numbers speak for themselves: caregiver burnout costs UK corporates £4.8bn each year due to lost productivity, absenteeism, and turnover. This is a staggering figure that emphasises the urgent need for effective wellbeing solutions.
The challenge of implementation
Of course, knowing what needs to be done and actually doing it are two different things. Many HR leaders I speak with are overwhelmed by the prospect of overhauling their wellbeing programs. They worry about the time, resources, and expertise required to implement a truly personalised approach.
This is where technology comes into play. The right platforms can dramatically simplify the process, allowing HR teams to offer a wide range of services without the administrative headache. They can automate much of the heavy lifting, from managing supplier relationships to tracking engagement and impact.
But technology alone isn’t the answer. It’s a tool, not a strategy. The real key is to start with a clear understanding of your workforce’s needs and your organisation’s goals.
Looking ahead
As we look to the future, it’s clear that employee expectations around health and wellbeing support will only continue to grow. The lines between work and personal life are blurring, and employees increasingly expect their employers to support their holistic wellbeing. In hand, that holistic wellbeing continues to improve engagement, general happiness, and retention.
We need to think holistically about our employees’ lives and the role that we, as employers, have, in making them better. This means supporting them not just as workers, but as parents, caregivers, and individuals with complex needs. It means being open to new ideas and continuously evolving our approach based on employee feedback and emerging trends.
It’s also crucial to stay abreast of legislative changes. For instance, the Carer’s Leave Act and new FCA DE&I regulations in 2024 will require employers to ensure they’re compliant with new standards for supporting caregivers in the workplace.
The future of wellbeing
As we consider these changes, I believe we’ll see a shift towards more integrated, personalised wellbeing solutions. We’ll move away from the fragmented approach where benefits are siloed between employers, insurers, and membership organisations, towards a more cohesive model that puts the individual at the centre.
This isn’t just about being a “good” employer – although that’s certainly part of it. It’s about recognising that our employees’ wellbeing is inextricably linked to our business performance. By addressing the need for flexible, personalised, and accessible wellbeing solutions, we’re supporting our people and future-proofing our organisations.
And here’s the exciting part: when done right, the impact can be tremendous. We’ve seen engagement numbers increase by 300-400% almost instantly just by giving employees choice, flexibility, and access to things they find relevant.
What’s more, good benefits don’t need to break the bank. It’s a common misconception that flexibility and personalisation require a large budget. In reality, as little as £50 per employee per year, the threshold for benefit-in-kind, can go a long way to provide a strong health and wellbeing proposition when done right, especially when combined with accessible self-pay and salary sacrifice options.
For smaller businesses worried about costs, there are innovative solutions. By “bundling” volume from multiple employers, it’s possible to provide costs for smaller employers that are normally only accessible to large enterprises. This levels the playing field, allowing businesses of all sizes to offer comprehensive wellbeing support.
The journey towards truly impactful employee wellbeing isn’t always easy, but it’s undoubtedly worthwhile. As leaders, it’s our responsibility to champion this shift, to challenge the status quo, and to create workplaces where everyone can thrive. Because when our people thrive, our businesses do too.
