Driving Business Outcomes

The Financial Benefit of an Amplify Service

Introduction

Untreated mental health difficulties have significant financial implications for businesses.

This case study examines the potential return on investment (ROI) for implementing an Amplify service in a financial services company with 1500 employees based in the City of London.

Our analysis combines Amplify operational data, the research literature, and publicly available financial information to provide a comprehensive overview of the financial benefits of the service.

Key Facts

Mental Health Prevalence: 17% of the workforce (255 employees) experience mental health issues annually (Luckhaupt et al. 2017)
Service Reach: The Amplify service is expected to reach a minimum of 10% of the total workforce (150 employees). This assumption allows for gradual service adoption and accounts for those who may not seek help.
Recovery Rate: Of those who use the service, we assume a 67% recovery rate (101 employees).
Productivity Improvement: For those who recover, we estimate a 50% improvement in productivity .
Absenteeism: Using CIPD's Health and Wellbeing at Work 2023 report we assume a figure of 7.8 average sick days per employee per year.
Presenteeism: We estimate 35 days lost per affected employee due to presenteeism annually (Vitality/Rand Europe, 2019)
Staff Turnover: We assume 1% of employees with mental health issues leave the company annually, and it takes 3 months (63 working days) to fully replace an employee.
Financial Impact: We use the company's adjusted operating profit (£382m) to calculate a daily profit per employee of £979.49, assuming 260 working days per year.

Calculations

1. Costs Due to Mental Health Issues

a) Absenteeism:

Days lost: 255 affected employees * 7.8 days = 1,989 days
Cost: 1,989 days * £979.49/day = £1,948,205.61

b) Presenteeism:

Days lost: 255 affected employees * 35 days = 8,925 days
Cost: 8,925 days * £979.49/day = £8,741,948.25

c) Staff Turnover:

Employees leaving: 1% of 255 = 3 employees
Days lost: 3 employees * 63 days = 189 days
Cost: 189 days * £979.49/day = £185,123.61

Total annual cost due to mental health issues: £10,875,277.47

Outcome

This case study demonstrates that implementing an Amplify Service generates significant cost savings and productivity improvements.

The ROI of 15:1 indicates that the potential benefits substantially outweigh the cost of the service.

Whilst this model focuses solely on quantifiable financial impacts there are also other potential benefits such as improved employee morale, increased engagement, enhanced company reputation, and better workplace culture. By partnering with Amplify you not only gain financially but also demonstrate a commitment to employee wellbeing which can have far-reaching positive impacts on your organisation as a whole.

2. Savings from Amplify

a) Absenteeism Savings: