Ever Wondered What The ROI is On Happier Employees?

After the Covid19 event many people have decided it isn’t worth working quite so hard, unless you’re doing what makes you happy. It’s a trend known as the Great Resignation. But people who do still need/want to work also value hybrid office work, where they don’t have to commute and get more family time. Healthcare benefits are another bonus in an era where medical support is being rationed by the NHS or other government agencies.

Happy employees tend to stick around longer, which is why many insurers and brokers are now looking at packages that go way beyond salaries and gym memberships. In the end, reducing the employee churn can help save your buisness a great deal of HR and recruitment budget, reduce sickness pay, plus achieve more productivity goals due to higher morale.

Here’s some info from YuLife.

YuLife, the tech-driven financial services brand on a mission to inspire life, today released the results of a commissioned Total Economic Impact™ (TEI) study conducted by Forrester Consulting which identified that the return on investment (ROI) generated by insuring with YuLife is 181%, when switching to YuLife from traditional insurance providers.

After interviewing HR and Benefits representatives whose companies use YuLife, the study found insuring with YuLife leads to an 11.5% reduction in absence, a 2.75% reduction in employee turnover, and a 2.5% increase in productivity in addition to financial rewards provided to individuals. The study also revealed a 2.7x increase in utilisation of Employee Assistance Programmes (EAP) and Virtual GP (Teledoc) services.

To conduct the study, Forrester interviewed HR and Benefits representatives, most of whose companies had existing group insurance policies with traditional insurance providers, to identify the costs, benefits, flexibility and risk factors that affect their investment decisions. As a result of switching to YuLife, interviewees experienced improvements in employee retention, reduced absenteeism, increased productivity and benefits in the value of rewards and discounts earned by employees.

YuLife commissioned Forrester Consulting to evaluate how YuLife benefits businesses and provides a qualifiable return on investment when switching from traditional group life insurance.

OUR STUDY SAID

Forrester aggregated the interviewees and combined the results into a single composite organisation that has a workforce of 5,000 employees. Additional quantified findings for such a composite organisation include:

• Top Level Results: The representative interviews and financial analysis found that a composite organisation experiences total benefits worth £2,023,192 over the course of three years versus the actual costs of £720K, and an ROI of 181%.
• Improved Employee Engagement and Reduced Turnover: Unlike traditional insurance models that pay out only when a claim is made, YuLife provides health and wellbeing benefits on a continuous basis. Forrester estimates the increase in employee engagement leads to cost savings of £328,579, by means of reduced turnover.
• Reduced Absenteeism: Positive physical and mental lifestyle habits have been shown to correlate with unplanned illness-related absences. Forrester estimates the increased physical activity with those engaged in the program reduces absenteeism equating to roughly £420,071 over three years.
• Increased Productivity: YuLife’s app drives engagement with lifestyle activities that positively impact productivity, such as mindfulness and meditation exercises which improve focus. The Forrester study found this leads to a 2.5% increase in productivity and, over three years, the improved work results gains £977,670 for the composite organisation.
• Value of Rewards and Discounts Earned by Employees: YuLife offers rewards and discounts of choice earned by employees through its app. Over three years, this adds up to £296,872 for the composite organisation.

The study also identified numerous additional qualitative findings, which are not quantified in the study. These additional qualitative findings include: improvement in workforce health in the long run, as physical activity reduces the risk of long-term sickness absence; a customisable employee benefits platform through YuLife’s Wellbeing Hub; improved employee satisfaction with benefits; earn back from employee engagement; and actionable insights on employee wellbeing for HR leaders.

The full TEI study can be found on the YuLife website. To read the full study and learn more about YuLife’s offering, visit here.