Replacing an employee, be it for a few months or permanently, often costs companies an astronomical amount.
According to a study published by Center for American Progress, the cost of replacing an employee who earns a yearly salary of 30,000$ amounts to approximately 10% to 30% of their salary, while replacing an executive who makes 75 000$ can go up to 213% of their annual salary.
In addition, replacement costs quickly add up:
- Severance pay,
- Administration costs,
- Hiring and training costs.
How health impacts absenteeism
An employee leaving their job, even temporarily, has a negative impact on colleagues, given that they are the ones who will need to take charge of the absentee’s duties until their return or replacement.
This fact more than justifies the costs related to programs that keep employees happy and healthy.
“It is usually the best employees, who are more devoted and focused, that suffer from psychological health problems at work.” – Luc Brunet, Professor of Psychology at Université de Montréal
Investing in your employees’ health = undeniable ROI
According to a study published in the Annual Review of Public Health, programs promoting employee health have returns on investment ranging between 1.40$ and 3.14$ per dollar spent.
Are you ready to invest in your employees’ health and to incorporate this type of program in your company?