Poor wellbeing for employees has a financial cost for the business.
Allow me to explain that taking care of your employees well-being will also save money for your company.
Gallup came out with some data about how poor wellbeing impacts not only our organizations, but it has key inferences for how this impacts our economy and quality of life.
For example, 75% of medical costs are "accrued mostly due to preventable conditions."
We know that much of our medical system is already overburdened, as well as overwhelmed by the oversight caused by insurance companies and liability issues. But this data implies that companies with poor wellbeing among their employees also add to the burdens experienced in the medical industry.
Of course, that's not the mention the burdens that people feel. I frequently counsel individuals who are experiencing mental breakdowns, frequent panic attacks, and challenges with physical health caused by dysfunctional workplace conditions. These workplace conditions include:
A manager who is heaping unreasonable expectations on their employee and the employee does not feel safe to explain that it's too much;
Employees who are not able to have an appropriate work-life balance because they are expected to work 50+ hours per week while also expected to care for family members with little to no help;
No-win scenarios where employees receive little support and are expected to perform in an impactful way without knowing how well or how poorly they are doing;
Employees feel like a "cog in the wheel" when management treats them with little respect or regard for their value.
These are just a few examples, but are the most common ones. The physical and emotional ailments clear up once an employee is able to work out these issues with their employer, but are difficult to solve if the employee continues to have the same problems over and over again.
On top of it, it costs the company more money because the employee struggles to perform well, has difficulty to effectively communicate with colleagues and customers, and often needs to take extended medical leaves of absence.
The takeaway here is that caring for employees isn't just the right thing to do, but it impacts the company's performance too.