By Antonio Zivanovic

Attrition is a costly and common problem.

Recent studies in legal publications have shown upwards of 15 percent of general associates are highly mobile and display little long-term loyalty to their firms.

Attrition rates are astounding, and everybody knows this. What can be done to slow down this rapid professional “revolving door” in which many members of Gens X, Y, and Z seem to be caught?

To keep this simple, this article will use the legal industry as an example throughout; nonetheless, it is important to note that what follows has relevance across the broader demographic of business.

Fostering retention is a serious fiscal responsibility. As a result, competitive salaries are offered by many firms to recruit and retain top talent. However, with associates leaving well paid positions in surprising numbers, this pay to stay thinking does not appear to address the issue entirely.

Why is this? The answer is simple. While money is important to “free agents”, associates also need to know that their firms are interested in having their employees achieve a productive work–life balance. Programs that bring “life” to work are financially smart and key to associate recruitment, retention, and productivity.

Employee health & wellness programs have emerged one such cost-effective way to help retain associates and have proven to be lucrative investments. The mental and physical engagement of employees has become risen in the ranks of HR priorities. Addressing rising health care costs and presentee-ism losses, retaining recent recruits, and handling aging employee populations are among the many ongoing tasks of a Human Resources Department.

In Canada, healthcare costs typically increase between 12-20 percent annually. Consequently, every four to six years an employer’s healthcare costs will double. Workplace health and wellness programs that foster work–life balance and strategically target the above cost drivers pay great dividends for those who seek more than the status quo. Yet some still doubt that providing these services has any economic payoff. Why is this so?

The reality is that the return on investment (ROI) statistics are simply not readily available for many solid health and wellness programs. This does not mean that the payoff of achieving work–life balance is mythical. Indeed, some of the world’s most successful companies in other sectors achieve notable returns on spending to promote this balance. The first five years of the Johnson & Johnson LIVE FOR LIFE program netted over $1 million in savings.

Recent meta-evaluations have cited an average ROI of $6.30 for every dollar invested in employee health and wellness programs. The numbers are real, and attest to the positive indirect financial results in terms of improved morale, easier recruitment, increased employee satisfaction and productivity, and significantly lower attrition.

Similarly, various companies provide annual stipends to support associates’ “healthy lifestyle” efforts. The ROI on this deliverable, however, is difficult to measure. If the goal is to provide an employee perk, then the purpose is well served. However, if the point is to increase exercise adherence or motivation, leading to a healthier lifestyle and better worker retention and productivity, then the success is less obvious.

Other approaches focus on achieving specific results, and lead to greater financial benefits. For example, by strategically targeting a lifestyle-enhancement program, individuals can be diverted from a “disease track,” reducing the organization’s exposure and inherent loss.

Lip-service is not enough. Offering a “lunch & learn” sessions or a good one-off service supported with little buy-in from senior players will not do the job.

A program can include several approaches, depending on an organization’s size, needs and wants. Here are several specific initiatives that can be used by a progressive firm of any size:

draw on HR and Benefits Data to structure a program;
align employee health and wellness initiatives with corporate business objectives;
stimulate health education through targeted wellness seminars;
implement programs that contain a competitive element; and
offer benefits-linked financial incentives.

Most importantly, and key to achieving any or all of the above, is the importance of factoring health and wellness on a strategic level. Most, if not all, workplace health and wellness initiatives either directly or indirectly support employee recruitment and retention. Hundreds of thousands of dollars are spent on recruitment each year, but then most firms go on to underinvest in health and productivity management efforts that could retain and engage such recruits. Such efforts provide a strong ROI.

Employees face great pressures in the BlackBerry era, and managing in the knowledge economy can be very stressful. Client expectations of instant service delivery and greater employee mobility are forever changing the way many businesses operate. Firms face great challenges in warding off client dissatisfaction in the face of high employee turnover, yet the connection between associate retention and providing a balanced work–life environment is often ignored. The challenge of retaining an associate is reduced when a workplace culture is created that supports associates’ work–life balance needs.

In the end, the numbers speak for themselves. Attrition concerns and costs are real, and, at least in part, avoidable.

Strategically targeting associate retention means you must address the work–life balance issue genuinely and effectively. Follow the leaders in your industry by investing in your people to minimize healthcare costs, foster the development of an optimal workplace, and control attrition rates.

(PeopleTalk: Spring 2011)