Case Study

Wellbeing More Than Just Good Health

Wellbeing that which makes life worthwhile.

 

Small Changes Today Delivering Promise For Tomorrow

Wellbeing More Than Just A Conceptualization; The Prerequisite To Improved Productivity. 

There are over 4 billion square feet of commercial office space in America. Over 9 million people find employment in commercial offices across America. Unfortunately, 55% report they suffer from severe workplace stress.

Wellbeing

Employee wellbeing goes beyond good health. Measuring Wellbeing incorporates the tangible (productivity output) as well as the intangible (feelings of equanimity). Wellbeing defined is the State of Being Well, Achieving a Harmonic Balance in One’s Self.

Presenteeism

Presenteeism is commonly defined as being at work while ill, unlike absenteeism, which is easily identifiable by the lack of presence.  Presenteeism is more challenging to identify, and its presence has far more reaching consequences.  A more suitable definition of presenteeism would be, a person who is physically present at work but performs at a reduced capacity with “decreased productivity and below-normal work quality” for a variety of reasons.

Productivity

Productivity is the “Heartbeat” of industry.
Productivity provides a business with a competitive edge.
Productivity drives wages and benefit packages.
Productivity provides resources for businesses to be community benefactors.

 

Wellbeing, Presenteeism, Productivity

Three concepts that are forever entwined. Yet, since Bobby Kennedy enunciated these famous words, GDP (productivity) “measures everything except that which makes life worthwhile.” American business has struggled to achieve that balance between Improved Wellbeing Reduced Presenteeism and Optimal Productivity.

 

 

Let’s take a closer look

25,000 Square Foot, Commercial Office Space Single Occupancy 100 Employees. Service-Based Financial/Insurance

Using OECD (Organization for Economic Cooperation and Development), the United States productivity per hour rate is estimated at ($74.70). The OECD reports that the United States has approximated weekly work hours of 33.5, and annual hours worked of 1,744.3. The estimated yearly productivity is $130,300.30 for the United States.

Applying the average rate of management 21% (Harvard Business Review) productive labor is 79%; in this case, we have 21 managers and support staff and 79 revenue-based employees. 

Estimated annual productivity for this 25,000 square foot commercial single-occupant facility with 100 employees in the United States is $10,293,723.70.

The revenue per employee equates to $102,937.24, (total amount of revenue divided by the total number of employees) breaking that number down further to the revenue per labor hour establishes a comparative point for this illustration. We are highlighting the benefits of a focused approach to reducing employee presenteeism by targeting the causes as opposed to symptom management, thus improving employees’ overall Wellbeing. The revenue per employee per hour is $59.01. This number is accomplished by (dividing the revenue per employee by the total hours worked).

A similar business located in Luxembourg, a country with a higher Wellbeing index and a lower Presenteeism index, changes the outcome. Continuing with the OECD data rates, Luxembourg’s productivity levels per hour is ($105.10), with weekly hours worked of 28.6. The OECD’s annual hours recorded for Luxembourg is 1,505.3, 239, or 13.7% fewer hours than the United States. Luxembourg’s yearly productivity is $158,206.70, an increase of 21.4% totaling $27,906.4.

Assuming the same managerial rate of 21% (21 management and support staff), the 79 revenue-based employees will produce $12,498,329.30 an increase of $2,204,605.6. A 21.4% improvement in annual productivity, with a 13.7% reduction in total labor hours of 18,881.

The revenue per employee equates to $124,983.29. The revenue per employee per hour is $83.03, a 40.7% improvement over our US location.

Comparing a similar business located in Ireland, we discover that the annual labor hours increase by 2.3% or 40.9 hours more per year. Ireland also has a higher Wellbeing index and a lower Presenteeism index than the United States. Using OECD productivity levels per hour ($104.10), with weekly hours worked of 34.3. The OECD’s annual hours recorded for Ireland is 1,785.3, 40.9 hours more than the United States. Ireland’s yearly productivity is $185,842.90, an increase of $55,542.6 or a 42.6% increase over the United States.

Assuming the same managerial rate, the 79 revenue-based employees would produce $14,681,589.10 an increase of $4,387,865.4 a 42.6% improvement in productivity. However, this increased productivity did require a 2.3% increase in labor, totaling 3,231.10 hours. 

The revenue per employee equates to $146,815.89. The revenue per employee per hour is $82.24, a 39.4% improvement over our US location.

Converting the United States hours to the equivalent of Ireland with all other variables remaining constant, the United States would produce $241,277.06 more trimming the output gain to 39.4%. However, the revenue per employee per hour does not change at $59.01.

When we look at a similar business located in Norway, an additional country with a higher Wellbeing index and a lower Presenteeism index than the United States, we discover that the annual labor hours decrease by 362 or 20.8% compared to the total hours worked of the United States. OECD productivity levels per hour for Norway is ($93.10), 24.6% higher than the United States. Combined with weekly hours worked of 26.6. The OECD’s annual hours recorded for Norway is 1,382.3. Norway’s yearly productivity level is $128,692, a reduction in the annual total output of $1,608.17 or 1.2% lower than the United States, based on the hours each country works.

Assuming the same managerial rate, the 79 revenue-based employees would produce $10,166,678.30 a slight decrease in the total output of 1.2% or $127,045.40. However, the hours worked decreased by 28,598.

The revenue per employee equates to $101,666.78, a decrease of $1,270.50, a 1.23% decrease.

The revenue per employee per hour, however, is $73.55 a 24.6% improvement over our US location.

Converting the United States hours to the equivalent of Norway with all other variables remaining constant, the United States would produce $8,157,367.00 or $2,009,311.30 less in total output. The revenue per employee, in this case, would be $81,573.70. The revenue per employee per hour would remain unchanged at $59.01

  

 

When it comes to understanding presenteeism’s effect on productivity, understanding stress levels within the organization is an efficacious barometer. High levels of stress have been linked to several chronic illnesses, as well as increasing the probability of contracting acute  illnesses as high levels of stress compromises our immune system. Stress has also been identified as a leading cause of error rates, both apparent and latent.
The Rocco’s ASTEW system is at its heart an employee wellbeing program. As a companion methodology to your existing wellness program that provides a benefit only for employees that participate in the program. Our ASTEW strategy extends direct benefits across the entire organization.

Rocco’s ASTEW system will improve the health and wellness as well as the Wellbeing of those associates that directly participate in our Kaizen centered program and those employees that do not. ASTEW encourages the reinforcement of previously learned skills and reinstating them as lifelong habits creating an exponentially healthier environment. The direct wellness benefits that are produced for a participating employee have a carryover effect benefiting nonparticipating employees while subtly encouraging their future participation.

 

 

Wellbeing plays an essential role in productivity. Yet Employee Wellbeing remains under-emphasize in productivity growth improvement goals.

Achieving Wellbeing 

Our ASTEW system’s approach to sustainability is quite simple. The human body is a wondrous thing, and one way to view the body is as a micro-ecosystem. Our bodies contain an estimated 37.2 trillion cells, all working together in harmony and balance, allowing us to experience our everyday life. Our body’s ecosystem interacts with other ecosystems, our home life, work-life, our local communities. Viewing the human body as a micro-ecosystem enriches our understanding of how connected and dependent our life is to the many micro and macro ecosystems we encounter and interact with directly and indirectly throughout our everyday lives. Comprehending living organisms as a micro-ecosystem will provoke a deeper appreciation for how a small ecosystem like an individual honey bee’s interaction with its many ecosystems is essential to keeping our ecosystem (our body) in harmony and balance. All of these living ecosystems 8.7 million species of which humans are one are made possible by the macro ecosystem we know as the third planet from the sun. Just like our body’s ecosystem performs best when it is healthy, all other ecosystems function best when they are healthy. So for us, sustainability equals health.

Client Actuated Custom Solution

We work with our clients to discover what solutions work best for them. We achieve our clients’ objectives by focusing on the interconnection the solutions provide towards their long-term goals. Workplace culture building, employee engagement, productivity escalation, employee wellbeing, in addition to community responsibility, along with encouraging community extolment for our client’s business, all influence how proposed solutions are efficaciously optimized.

Reducing employee stress levels through targeted small presenteeism reducing strategies improves productivity and employee Wellbeing.

The Results

Wellbieng and Stress levels have an impact on productivity 

Amounts shown in U.S. dollars 

Luxembourg Revenue Per Hour

Ireland's Revenue Per Hour

Norway's Revenue Per Hour

United States' Revenue Per Hour

%

Luxemboutg's Revenue Per Hour Over U.S.

%

Ireland's Revenue Per Hour Over U.S.

%

Norway's Revenue Per Hour Over U.S.

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