Why Employee Well-being Matters for Your Bottom Line-PCI Webinar How Wellbeing Impacts Bottom-Line Webinar Presentation Handout

PCI Webinar How Wellbeing Impacts Bottom-Line Webinar Presentation Handout

Pdf Summary

The significance of employee well-being on an organization’s financial performance is immense, touching on numerous aspects from productivity to safety. This document, presented on September 18, 2024, emphasizes the importance of maintaining employee mental and behavioral health within the Architecture, Engineering, and Construction (AEC) industry.<br /><br />The speaker, Cal Beyer, who has extensive experience in risk management, particularly in human capital and well-being, highlighted several critical points:<br />1. **Human Capital Risk Management**: Recognized as one of seven strategic risks in AEC, it involves preserving an organization's human and financial resources.<br />2. **Behavioral Health and Profitability**: Poor mental health impacts strategic risks and profit drivers like productivity, quality, risk management, and cost management.<br />3. **Co-occurring Conditions**: Employee well-being often involves multiple, intertwined conditions affecting workers' compensation and health claims, leading to increased medical expenditures.<br />4. **Economic Implications**: Untreated mental health issues escalate absenteeism, presenteeism, and turnover, diminishing productivity and raising operational costs. Untreated behavioral health issues also increase medical costs due to higher rates of emergency care usage.<br />  <br />The presentation noted that approximately 70% of individuals with Substance Use Disorders (SUDs) are part of the workforce, contributing significantly to operational impacts like absenteeism and safety incidents. <br /><br />Furthermore, the document presented a "Revenue-Replacement Model" to illustrate how companies can calculate the extra sales required to offset losses attributable to behavioral health claims. This model suggests incorporating total incurred loss costs and future loss claims into company calculations to ensure accuracy.<br /><br />Four key workplace mental health strategies were recommended:<br />1. Leadership Engagement.<br />2. Raising Mental Health Awareness.<br />3. Resource Allocation and Strategic Planning.<br />4. Enhancing Access to Services and Support.<br /><br />Lastly, tracking incidents and understanding their costs due to well-being stressors is vital. This document suggests contractors track these incidents meticulously to pinpoint and address root causes while prioritizing investments in mental and behavioral health initiatives. Such measures could potentially ameliorate well-being stressors' impacts, promoting a healthier, more productive workforce, ultimately bolstering a company's bottom line.

Keywords

employee well-being

financial performance

mental health

AEC industry

human capital risk

behavioral health

economic implications

Substance Use Disorders

workplace strategies

Revenue-Replacement Model