Company leaders look to indicators as to how their business is performing. Integrating different metrics with great data is a great starting point to measuring what matters.

Aligning all measurements with business goals, turns the data into driving a safer, lower risk, higher performing, resilient, more productive workplace. When this is done well, there is great value added to the business.

Framing the metrics around the future of the business, the extended and ambitious goals of the business, how you want the business to grow and what key results are you looking to achieve, will contribute to the business performing well. The metrics should combine both lagging and leading indicators risk profiles. In addition, the combination of transactional measurements that address standards, compliance and the like could be combined with longer term, transformative measurements that influence business culture and encourage positive changes in the business.

Leaders within any business will drive change. They need to measure these changes and decide on what they mean to their business. If the leaders own and facilitate these changes then there is greater rate of implementation of such changes across the business.

Measuring what matters can only work if the leaders are ready for and recognise the need to change. Some leaders push back with – why change?

One clear indicator of why change is the measure associated with employee satisfaction. Research indicates that the more satisfied, productive, profitable employee – the better. Employee performance can also help predict next year’s profitability and customer satisfaction level.

Another why is linked to the leader who implements a well-structured corporate health, wellbeing and performance program that drives change for their organisation and raises awareness of health risks, leaves a great legacy.

The leader can complement traditional metrics such as injury and incident frequency and other KPIs, with metrics that are meaningful to people, profit and the future of the business.

Another reason to change enables the inclusion of other ‘costs’ being measured. The leader can then view how they impact employees’ performance and ROI.

The cost of doing nothing is huge and answers another why?

• USA – $576 billion in total. Some $227 billion linked to absenteeism and presenteeism. Another $117 billion linked to disabilities and leave.

• Australia – $61.8 billion linked to work related injuries and illness. $28 billion for physical injuries with each case costing $75K. And $33.5 billion for nonphysical injuries with each event costing $216K.

• Do nothing and the status quo remains expensive.

Lower employee engagement…need to do something quickly.

• Only 44% of employees are fully engaged in their jobs.

• Where there is an engaging health, wellbeing and performance program in place, looking at a raft of metrics, 80% of employees are engaged in their jobs. They are also satisfied with work and their colleagues.

Attracting and retaining staff…another reason as to why?

• There is an ever-increasing competitive labour market.

• Rising levels of job stress and burnout mean employees are looking for balance in their life, wellbeing and work.

• Employees are now seeking employers who offer these employee benefits, and more.

• In the WA labour market, recruitment and retention is becoming more expensive. What was once considered “an optional benefit” – such as “a corporate health program”, will no longer be sufficient as businesses strive to present more attractive offers to potential employees.

The new employee is truly becoming an asset, not an expense – so let’s look after them.

Attrition is expensive…but this approach can keep them longer.

• As an example if we take average staff costs at around $100k per year, plus about $1200 per head, per year spent on employee training. It is a significant investment.

• It is estimated that it will cost any employer up to a multiple of twice the current employee’s salary to replace like for like.

• This makes the introduction of an integrated data driven program one of the keys to staff retention.

Employer of choice

• Our data on workforces indicates that “Belonging” rates are the highest on the Act, Belong, Commit (ABC) mental health profile. Employees want to be part of a business who cares, values employees and presents an environment where individuals can be themselves.

• Having an integrated program that takes a long term, broad approach to all things health and safety elevates the company to being an employer of choice. It adds enormous value to the company and what can be offered to employees.

• 64% of employees will stay for at least 5 years if satisfied with their company’s offering and data collection points.

• Promoting health and wellbeing in the workplace – means the company is 2.5X more likely to be viewed as a top performing organisation.

If you are a leader of your company and are looking to enhance performance, productivity and staff retention and better employee engagement then contact Optimum (admin@optimumhms.com.au). We can help you obtain benchmark data and implement a program specifically for your organisation.