Why CFOs are taking more notice of staff wellbeing

FINANCE, CAREER

As more CFOs recognise the potential of employee wellbeing programs as profit drivers rather than nice-to-have staff extras, detailed absence data is in higher demand to help guide wellness investment decisions.

Published by CFO Magazine 

CEO of Healthy Business Steve McCullagh, and head of people advisory at insurance broker, Lockton Morag Fitzsimons.

As more CFOs recognise the potential of employee wellbeing programs as profit drivers rather than nice-to-have staff extras, detailed absence data is in higher demand to help guide wellness investment decisions.

“It’s understandable that some CFOs have not historically viewed employee wellness programs as a strategic imperative, but that needs to change if an organisation’s full performance potential is to be met” says Morag Fitzsimons, head of people advisory at insurance broker, Lockton.

“Organisations often tell us it’s a challenge to quantify not only the cost of their staff absences, but also the return on investment from setting up wellness interventions,” says Fitzsimons, who has specialised in the workplace wellbeing field for some 35 years.

“Without that quantification, it’s not surprising leaders may hesitate to invest in wellbeing programs,” she says.

“But we know that the cost of employee absenteeism is high in Australian businesses, we know people’s expectations of work are changing and the working population is shrinking and ageing – so, if we want to get the best from the people we have, their health and wellbeing are going to be important.”

Indeed, staff wellbeing is an operational lever that should be elevated to receive the same amount of CFO attention as others, says Steve McCullagh, Chief Executive of employee health and wellbeing solution provider Healthy Business.

“CFOs have a strategic approach to any large costs in their business – and people are often an organisation’s biggest cost,” McCullagh says.

“Yet many CFOs still see wellbeing as simply a bit of a perk in the employee value proposition, an HR thing that’s a bit ‘fluffy’. But if you’re constantly recruiting new people, or your existing people are often absent, that’s a big expense that should be strategically measured and addressed like any other.

“If you were losing millions of dollars a year in faulty machinery, you’d be asking questions about what’s causing the problem, never mind the ethical and regulatory imperative to look after your people.” 

To read the full story, go to CFO Magazine 

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