Boon Health Guest Blog | Why You Should Be Measuring ROI on Non-Traditional Benefits
Since the pandemic started in March of 2020, the world has seen an increase in stress, burnout and uncertainty due to loss of jobs, working from home, managing childcare and so much more. Under these circumstances, many employees are looking for greener pastures. In fact, according to a new Gallup analysis, 48% of America’s working population is actively job searching or keeping an eye out for opportunities.
With the “Great Resignation” on everyone’s minds, employers are searching for creative, engaging ways to recruit and retain top talent. One method to consider is adding non-traditional benefits focused on mental well-being and professional development.
While traditional benefits include life, dental, disability and vision insurance, companies around the world are adding mental well-being, professional development coaching and therapy services to their suite of benefits – and for good reason. A recent World Health Organization-led study estimates that depression and anxiety disorders cost the global economy $1 trillion each year in lost productivity. Similarly, Gallup found that the lost productivity of non-engaged, and actively disengaged employees is equal to 18% of their annual salary. Additional costs, such as absenteeism and increased turnover, make mental well-being a benefit inside the workplace not only recommended but paramount to today’s workforce.
However, stakeholders might still be hesitant to invest in these non-traditional benefits. They want to be able to guarantee their return on investment (ROI) in a way that’s more concrete than occasional questionnaires asking employees to rate their happiness on a scale of 1-10. So, how do you measure ROI when it comes to mental wellness?
At Boon, we’ve found a data-driven method of calculating ROI in mental well-being programs. The results that we’ve seen make an extremely compelling case for benefits managers who want to improve engagement, productivity, and retention among employees. Here’s how we calculate ROI for our clients, and how that’s translated into real, tangible benefits for the companies we work with.
How to evaluate benefits
First, you must work closely with the business to understand their specific needs. Are they dealing with high turnover? Do employees mention feeling stressed or burned out? Is absenteeism high? Do new managers need help developing leadership skills? Each company has different goals, and it’s important to tailor mental well-being programs with those in mind.
Next, dive into the needs of the employees. Employers can do this by sending out a personalized welcome survey to help them narrow down areas of focus. For example, employees may be coping with stress and anxiety, or they might be interested in becoming a more effective leader in the workplace. By setting these baselines, employers are better able to measure the impact these wellness-based benefits provide for employees and the business.
How Boon measures ROI
At Boone, we’re laser-focused on demonstrating tangible ROI for our services. We do this by measuring resilience, employee turnover, and more.
Employee turnover: Put simply, employee turnover costs employers money. In fact, the average cost of turnover for one employee is estimated to be anywhere from ½ to 2x the employee’s salary. Beyond cost, high turnover is also a sign that there’s an opportunity for the employer to improve something, whether that’s professional development or workload allocation.
Resilience: We believe that resilience is the best predictor of a happy, full life. Research also confirms that higher levels of employee resilience directly corresponds to improved work performance, higher levels of motivation, job satisfaction, and greater commitment to the employer. We use the Connor-Davidson Resilience Scale (CD-RISC-10) to track the resiliency of our clients over time.
Additional metrics: Lastly, we also measure employee productivity and engagement to gauge ROI. For example, we look at the employee utilization rate of our programs, second session completion rate, and total sign ups. We also look at increased performance and employee likelihood of staying at the company.
Why invest in these benefits now?
As the Great Resignation rolls on, turnover continues to climb. Four million Americans quit their job in July of 2021 and research shows that 87% of employers believe that improving retention is a critical priority for their organization.
In addition, resignation rates are highest for employees ages 30 to 45. Employees within this age group are mid-career, and they’re experiencing a higher workload than normal. They also tend to be new managers, unsure of how to lead and struggling to coach others while maintaining a high level of performance. Outside of work, they’re likely to have family responsibilities (like childcare) adding to their stress levels.
Given this information, providing employees with extra personal and professional support is a surefire way for an employer to improve retention.
Potential benefits & ROI in wellness programs
Through work with customers, we’ve been able to see measurable success in every area we’re tracking. We are excited to have recorded a 40% turnover reduction for employees who engage with Boon’s platform. This creates at least $3 dollars saved for every $1 dollar spent on Boon from employee turnover alone for our customers, as well as saving countless headaches for leadership.
Thus far, 85% of employees who use Boon’s coaching services are seeing an improvement in their CD-RISC 10 resilience score after just six coaching sessions with their Boon coach. Since resiliency positively correlates to other metrics, such as productivity, motivation, and job satisfaction, we expect to see these scores rise as well.
To attract and retain top talent to grow your business, companies must prioritize giving their employees a highly personalized benefit experience. Wellness programs are a great way to enhance employee experience by supporting employees, while also tracking ROI associated with those programs. It is no longer a matter of ‘IF’ companies need to invest in the personal and professional growth of their employees, it’s ‘WHEN’ and ‘HOW’.
Want to learn more?
Visit our website to learn more about Boon’s services and how our personalized coaching platform can empower your employees to become more resilient, authentic versions of themselves. To learn more about resilience as a metric, read our blog post on the topic here.
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