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High individual wellbeing could boost UK productivity by £34bn, research finds

Where low individual wellbeing and commitment are factors, productivity loss per employee was calculated at £10,500 per year.

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High individual wellbeing could boost UK productivity by £34bn, research finds
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Productivity losses for employees with low levels of individual wellbeing and commitment are as much as 2.5-times more than those with high levels, according to research from Fruitful Insights, in partnership with Legal & General Group Protection.

The research suggested that helping the working population reach both a level of high individual wellbeing and commitment could generate as much as £34bn in improved productivity per year.

Where low individual wellbeing and commitment are factors, productivity loss per employee was calculated at £10,500 per year, in comparison to a productivity loss of £4,200 per employee, per year where individual wellbeing and commitment are high.

Fruitful’s analysis found that cultural factors – such as work control, competence and good relationships – represented the key drivers that lead to positively or negatively impacting wellbeing.

Fruitful compared responses from employees who ‘definitely agree’ or ‘definitely disagree’ with various key cultural factors that impact wellbeing.

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It showed that productivity loss for an employee without supportive colleagues was £10,000, more than double the productivity loss for an employee with supportive colleagues (£4,700).

For an employee who feels valued versus an employee who does not, the productivity loss was £3,700 and £10,400 respectively.

Where an employee felt their skills were being used appropriately versus an employee who did not, the loss was £3,600 and £9,800.

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Mike Tyler, chairman and co-founder of Fruitful Insights, said: “It would be impossible to get productivity loss to zero.

“Thinking you can, might only lead to issues such as work-related stress and burnout.

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“The important point is that the most satisfied employees have a much lower level of productivity loss than the very dissatisfied employees.

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“So, our focus should be on bringing the tail up; focusing on where people are dissatisfied, as opposed to expecting 100%.

“There’s clearly a big prize to be had, in terms of improving wellbeing and commitment, and hence productivity of the UK working population.

“But that won’t be achieved through subjective wellbeing measures alone. These are important, but it’s time to evolve.

“To really get to the core of the matter, employers need to be encouraged to focus on the cultural drivers of wellbeing.

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“It’s for all these reasons that we designed Fruitful Insights; provided at no extra cost to the majority of Legal & General Group Protection’s clients covering 100+ employees.”

Colin Fitzgerald, distribution director at Group Protection, Legal & General Retail, said: “The Fruitful Insights platform not only helps the intermediaries that work with us – and their clients – to quantify the impact of wellbeing on productivity, it also helps them gain subjective insights from employees.

“And, crucially, it also helps them identify the cultural drivers. This allows them to identify priorities, action plans and follow-up assessments to help improve wellbeing and performance within a client’s business.

“Our group protection products are as much about wellbeing – helping employees be well, get better and be supported – as they are about insurance.

“And we want our employer clients and their employees to make full use of the valuable services provided alongside the insurance product.

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“At the same time though, we’re fully aware that value of investment into benefits, services and interventions, will only be fully realised by organisations when the environment in which they sit – the culture – is also conducive to good wellbeing.”

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