Wellness: Why spending on your employees’ well being is good business

Absenteeism and turnover cost a lot more than you might think

Absenteeism and turnover are costly, as well as disruptive to your enterprise. A Statistics Canada labour force survey found that the average worker missed 10 days of work 2009, nearly double what it was just a decade earlier, costing employers about $2,500 per absent employee. Replacing employees lost through turnover costs even more, the equivalent of 18 months’ salary to replace a manager or professional or six months’ wages to replace an hourly worker. A survey last year by the Conference Board of Canada found that most employers don’t track absenteeism, so they aren’t likely to know how much it’s actually costing them.

The top reasons for missing work, the labour force survey found, boil down to:

• illness or disability,
• caring for family members,
• and personal or family responsibilities.

Much of that absenteeism is tied to workplace stress. Other studies show that sick or stressed-out employees who remain at work performing less than their best cost employers far more in lost productivity than absenteeism.

In short, employee wellness – or lack of it – costs Canadian businesses hugely, an estimated $15 to $25 billion per year.

Among the steps that organizations can take to get a handle on the problem, the Conference Board recommends:

• Identifying causes of absenteeism;
• Taking steps to improve the health and well-being of employees; and
• Having a return-to-work program in place.

Creating a workplace that supports employee wellness makes a dramatic difference. Among the benefits:
attract and retain the best employees.

• improve productivity.
• reduce employee turnover.
• increase morale.
• reduce absenteeism, injuries and illness.
• reduce health, insurance and benefits costs.

Workplace wellness programs can reduce absenteeism and turnover by as much as half, cut time-loss injury rates by two-thirds, and save $5,000 to $10,000 per employee in benefit payouts per year. Discussing options with employees is important, as leading experts on work such as University of Alberta professor emeritus Graham Lowe and York University professor Dalton Kehoe point out.

Tourism Saskatchewan leads by example

Tourism Saskatchewan introduced an employee wellness program three years ago, following discussions between management and union representatives.

“We all agreed that this was a good thing,” says Joan MacPhail, Tourism Saskatchewan Manager of Human Resources. “It was beneficial to our employees and also beneficial to the organization.”

“A wellness program recognizes that we value each employee as a whole person, rather than as just the individual that we get for eight or nine hours a day. It’s something that is reflective of trying to get a work-life balance.”

“I look at it very much as an investment in the people,” MacPhail adds. “We invest in our employees, whether it’s through training, whether it’s through workshops, be they in the office or outside the office. This as an investment as well.”

The size of the benefit can vary. Tourism Saskatchewan decided that reimbursing up to $300 per year for wellness related spending makes sense. For a smaller employer, $100 per year could be very meaningful to employees. Instead of giving money, a business might participate in corporate volunteerism, let employees leave early in summer or organize a company-sponsored trip. Plans can grow over time, expanding the range of activities and reimbursements covered.

“You need a starting point,” MacPhail says. “At the end of the day, the dollar value that the employer puts in will matter, but what matters most is that an employee can look at their employer and say, ‘they recognize that I have a life outside of work, that it can cause me stress and they’d like to help me with that’.”

A wellness plan is considered a taxable benefit. It will show up on T-4 slips, so employees need to know that in advance, MacPhail says.

“Not everything will appeal to a group of employees, whether they be six people or 600 people,” she says. “A range of services and options from which employees can choose is very valuable.”

Figuring out what to include in your wellness plan is as easy as sitting down and searching the Internet, MacPhail says. “Compared to other programs, a wellness plan is relatively easy to implement. Having that input by the employee group really makes it better customized to your organization.”

Human Resource Metrics - It’s all about Measurement!

How do we know we are doing a good job as an organization if we aren’t measuring what we are doing?

Other departments are great at measurement. For example, the finance and accounting departments track expenses and revenues and compare how well the organization is doing through a number of measures: accounts payable, accounts receivable, assets, balance sheet, capital, cash flow, cost of goods sold, expenses, gross profit, gross revenue, etc.

The marketing department focuses on measuring their activities to ensure they are bringing in more revenue than they are spending and might measure performance through: customer generation, customer conversion rates, customer loyalty, market share, sales, etc.

How is your organization measuring the impact your human resource activities are having on business effectiveness? Here are a few ideas to get you thinking:

Employee Turnover – Find out your cost per hire, which includes both separation costs (time for exit interview, administrative processing, payment of benefits and/or severance to exiting employee, diminished productivity and morale of remaining employees, business down time, etc.) and replacement costs (job postings, recruitment activities, administrative processing, interviews, employee selection, orientation and training).

Productivity Ratio – Your organization can measure employee productivity in comparison to your human resource expenses. This will require you to define what your productivity outputs are.

Training and Development – What does your organization hope to get out of your training activities and how are you measuring it? Many organizations use a simple training evaluation form after the training occurs, but is your organization measuring whether employees actually learned what they were supposed to? Or if the employees are changing their on-the-job behaviour? What about measuring the effects this new behaviour is having on the organization?

Employee Engagement – You will get more out of an engaged employee than a non-engaged employee. Employee satisfaction surveys can provide your organization with a lot of useful information.


The human resource costs to an organization are generally one of the largest expenses an organization has, but many organizations don’t bother to utilize their people to their fullest capacity. Yes, people are more unpredictable than money and therefore can be more difficult to measure, but there are metrics available for your organization to utilize. Measuring these impacts will have direct benefits to your organization’s effectiveness and yes – even your profits.

The Human Resources Balancing Act

Working in human resources can sometimes feel like you’re the main act in a circus.

The Juggler:  The person responsible for human resources often has the task of juggling the implementation of management’s vision, while ensuring employees remain happy and motivated.

The Trapeze Artist:  Human resources can take you from one extreme to the next.  Sometimes you’re dealing with frontline recruitment, the next day executive recruitment.

The Lion Tamer:  We’ve all had to deal with those employees who don’t want to follow company policies, culture or rules and regulations.  Getting these employees to comply is another part of managing our human resources!

The Fire Eater: Putting out fires, usually conflict between employees, is a common HR function.

Tight Rope Walker:  Works closely with the Juggler, trying to balance organizational, departmental, and employee needs.

This post was written by Darcy Acton, Manager of Industry Human Resource Development.

Labour Market Policy Project Survey

Dear Saskatchewan Employer,

Congratulations! You have been selected to represent Saskatchewan employers from various business sectors in the province in the Labour Market Policy Project Survey.

The Ministry of Advanced Education, Employment and Immigration has partnered with the Johnson-Shoyama Graduate School of Public Policy to undertake a study of many aspects of our labour market.  Specifically, this important survey helps the Ministry understand if their labour market programming meets the needs of Saskatchewan employers. We’d love to include your feedback in our research.

Your information is important to us … and to the success of our programs.

It should take only about 15 minutes of your time to complete the survey.  The insights you provide will help the Ministry improve current programs to meet the needs of Saskatchewan’s employers in various business sectors throughout the province.

Your answers will be kept secure.

Your privacy is our first priority and we ensure that any information you provide remains secure.  With your permission, we’ll share the information gathered by the Johnson-Shoyama Graduate School of Public Policy project team with the Ministry so they can continue to develop and improve programs that will continue to meet the needs of employers in our province.

Thank you in advance for your feedback!

This research would not be possible without your participation.  Your time is greatly appreciated!

The survey will close Friday, November 12th at midnight. Here is a link to the survey:
http://www.surveymonkey.com/s/SK_Labour_Market_Survey_Johnson-Shoyama_School

This link is uniquely tied to this survey.

Thank you for your participation!

The Ministry of Advanced Education, Employment and Immigration promotes provincial economic growth and prosperity through strategic leadership that encourages and supports the development of a diverse, highly skilled, and productive workforce; attraction of new residents to the province; creation of fair, safe, and supportive workplaces; a fair and balanced labour environment; and dynamic and integrated innovation.  AEEI and its partners are committed to help Saskatchewan residents achieve their desired educational and employment outcomes.

The Johnson-Shoyama Graduate School of Public Policy is a provincial centre for advanced education, research, and outreach and training activities with campuses at both the University of Regina and the University of Saskatchewan. The school provides students and faculty the opportunity to work on contemporary public policy and administration challenges in an academic environment renowned for innovation and is fast becoming a destination for students from across the country and around the world.

Cost of Literacy: A Worthwhile Investment

“Most businesses underestimate the importance of literacy.  Higher literacy skills lead to increased output, higher productivity, greater ability to do on-the-job training, reduced error rates or workplace accidents, better customer service and greater employee retention.  Ultimately, this all leads to higher profitability.  Businesses tend to be comfortable with investing in specific skills training, such as learning a new piece of software.  Regrettably, many firms fail to appreciate the merits of investing in basic skills development, like literacy in English or French.”

Craig Alexander, Senior Vice-President and Chief Economist, TD Bank Financial Group

Canadian HR Reporter, Page 31, September 20, 2010

Call for Participation

In partnership with Social Research and Demonstration Corp. (SRDC), STEC and the CTHRC are undertaking a project aimed at assessing and planning for skills development in the accommodation industry of the tourism sector.

This project will implement a multi-stage program model, which recognizes that training is more than a one-time event in knowledge acquisition.  It is a process that involves the careful orchestration of several key elements to ensure the performance and training needs of firms and workers are well understood.  This process ensures that a training solution is designed and delivered in a way that matches learners’ needs and is aligned to the organization’s performance and business goals.

If you are an employer in the accommodation industry with 50-499 employees with training needs and are willing to commit to a Skills Development Research project, contact Darcy Acton, Manager of Industry Human Resource Development, at 306-933-7466 or darcy.acton@sasktourism.com.

Does the dress code at your organization convey professionalism?

You’re likely very familiar with the attitudes, knowledge, experience, values, and beliefs that define your business culture.  Operational policies and procedures, like an employee dress code, are designed to support the way you want to be seen by customers.  

We know that up to 93% of communication is non-verbal, and it all starts with that first impression. Having a dress code that accurately reflects your organizational culture is an important step in getting a positive message to your customers.

For example, if you work at a zoo you may expect your employees to handle animals, clean cages, deliver tours, and interact with visitors. Deciding what is acceptable attire is tricky, because the clothing must be flexible enough to allow for cage cleaning but proper enough to lead a tour and professionally represent the organization. Customers appreciate being able to easily identify an employee by his/her clothing, which adds value to their positive visitor experience.

Hotels face very different challenges because there are many departments with specific operational requirements.  Generally, a hotel will have a specific uniform that is slightly altered to reflect the department; for example, housekeeping, front desk agent, and catering.  The one thing uniforms have in common is the brand--the style or logo that identifies them as a member of the hotel team.  Guests of the hotel trust that employees who wear the uniform adhere to a certain standard of professionalism.

Retail outlets usually require their employees to purchase and wear the store’s clothing in order to better promote the brand.  Some companies offer discounts to staff, but others don’t.  This can become quite expensive for employees, especially if they are only making minimum wage and working part-time.  When deciding on your store’s employee dress code, it is important to take these factors into consideration.  If the expectation is that every employee must be clad in your brand, consider the cost to the employee and adjust wages and incentives accordingly.

Your organization’s culture can only be defined by you, taking into account the nature of your business, customer base, geographical location, and corporate goals.  Employee dress code is an important part of your overall image and should be effectively communicated to your employees.

Does your organization’s dress code reflect your culture?

Winner of the Service Best Customer Service Contest Announced

We are pleased to announce that the winner of the Service Best customer service contest is Sharon Elder!  Sharon will receive a Tourism Saskatchewan DVD, Place in the Heart, and a Land of the Living Skies CD.

Below is the entry that Sharon submitted:

For 25 years, we had a fly in fishing lodge in northern Saskatchewan, where we lived in the summer.  Winters were spent in Minneapolis, MN.  A great deal of emphasis was spent on GREAT customer service and new staff very quickly learned from experienced staff as to how this should be done.  Dealing with store workers etc. in Minneapolis was a treat.  Coming back to Saskatoon is NOT a treat.  To this day, I very often find the store clerks, office workers, etc. very rude.  It is obvious that they are not getting training in customer service.  Maybe is is because their jobs are year round rather than summer resort jobs.

I would like to suggest that equal emphasis be put on upping the customer service as is spent on rewarding excellent service.

Staff who can not make eye contact, don't smile, don't acknowledge a customer with a nod or finger wiggle do not entice me to deal with their store/office, etc.  As I am the one paying their wages, it is my choice to go where I'm welcome and I do.

Keep up the great job, hopefully other areas of the Saskatchewan economy will catch up to what the tourism business already knows.

Sharon Elder

New Pricing for Standards and Certification

A new pricing plan for national occupational standards and certification will come into effect on September 1, 2010.  All frontline certification will increase to $315 + GST.  The cost of certification for supervisors and managers will be $400 + GST and $680 + GST respectively.

In addition, fees are now applicable for exam re-writes and re-evaluations.

Online Column in the Financial Post Executive Features HR Trends and Research

The Financial Post Executive now offers an online column with a specific HR focus, written by regular HR Matters contributor Chelsea Willness.  Check back regularly for news and commentary on the latest HR trends and research: http://business.financialpost.com/author/cwillness/.  The latest posts offer insights on Corporate Social Responsibility, including "Why your Firm's CSR May Matter More than What you Pay".

Chelsea Willness, PhD, is an Assistant Professor of Human Resources and Organizational Behaviour at the University of Saskatchewan's Edwards School of Business. Her research focuses on the impact of Corporate Social Responsibility and organizational reputation on recruitment, employee engagement, and consumer behaviour.

Participate in the 2010 Canadian Tourism Sector Compensation Study

The Canadian Tourism Human Resource Council (CTHRC) and STEC respectfully request your participation in the 2010 Canadian Tourism Sector Compensation Study.

The CTHRC reports that while Saskatchewan was the province least affected by the economic downturn, it will be the first and only province to see a labour shortage in 2010.  Ontario, on the other hand, is not expected to see a shortage until 2013, despite the severe economic consequences that were reported in this province (The Future of Canada’s Tourism Sector: Economic Recession Only a Temporary Reprieve from Labour Shortages, p. 3).

As a Saskatchewan employer, you cannot change economic or labour market trends, but you CAN change the way you respond to these issues.  If you want to attract, recruit and retain skilled workers for peak performance in your workplace, employees need to know your compensation package is competitive.

You will be able to download the 2010 compensation study on the CTHRC website.  This valuable information will help you better understand the tourism labour market and assess the competitiveness of your compensation offerings.  This in turn will assist you in attracting and retaining the staff you need to run your business.

In addition to benefiting individual businesses, this research has been instrumental in assisting STEC and the Saskatchewan Hotel & Hospitality Association in demonstrating to both federal and provincial government agencies responsible for immigration that our industry provides excellent employment opportunities.  It is critical that we keep our compensation data current in order to support our efforts in this area.

Hay Group, a national company that specializes in compensation research, is conducting this study on behalf of the CTHRC, provincial tourism human resource organizations across Canada, and various national associations.  Take this opportunity to have your say and complete the survey today at:

https://www.haygroup.vovici.net/se.ashx?s=251137456F46B849

This survey is open to all tourism businesses in accommodation, food and beverage services, recreation and entertainment, and/or travel services for the occupations of:

Front Desk Agent, Housekeeping Room Attendant, Executive Housekeeper, Guest Services Attendant, Director of Sales and Marketing, Sales Representative, Accommodation Service Manager/Front Office Manager, Food Service Counter Attendant, Cook, Sous Chef, Executive Chef/Chef/Kitchen Manager, Host/Hostess, Bartender, Food and Beverage Server/Banquet Server, Food and Beverage Service Supervisor/Restaurant Supervisor/Maitre d’Hotel, Restaurant and Food Services Managers, Retail Sales Clerk, Outdoor Adventure Guide (Hunting, Fishing, Rafting, etc.), Heritage Interpreter, Head of Visitor Services, Tour Guide and/or General Manager as a Landscaping and Grounds Maintenance Labourer, Superintendent Maintenance/Groundskeeper, Head Professional (Golf), Program Leader/Instructor, Operator/Attendant (Amusement, Recreation, Sport), Travel Counsellor, Travel Agency Manager, Tour Operator.

Thank you for participating!  If you need any assistance, please do not hesitate to contact Darcy Acton, Manager of Industry Human Resource Development, at 306-933-7466 or darcy.acton@sasktourism.com.

To read more about the impact of the economic recession on Canada, click here.

Tell Us about Your Best Customer Service Story

One of the reasons we have frontline staff is to provide great customer service to guests. This service can come in the form of a warm smile, attentive listening and helpful advice. Guests are full of inquiries and comments, and it's in our best interest as employers to ensure our frontline staff is in a position to provide the best service available. Staying one step ahead of the competition depends on it!

Here at STEC we're convinced that as an employer in the tourism sector you have many good (and maybe not so good) customer service stories, and we want to hear them!

The story should be no less than 100 words and no more than 500, and will emphasize the great customer service that one member of your staff provided to a guest or guests.

We'll choose the best story of the bunch! The winner (you and the employee who provided the service) will win a Tourism Saskatchewan DVD, Place in the Heart, and a Land of the Living Skies CD. Your story will also be published in our online newsletter, HR Matters, and on the HR Matters Blog.

Let's tell the world what great customer service looks like!

Submit all entries via email to jan.rodda@sasktourism.com by September 1, 2010.