Benefit Categories

ADDING STANDLOGIX TO EXISTING STANDING DESKS HAS A MEASURABLE AND RESEARCHED BENEFIT IN THE FOLLOWING CATEGORIES:

  1. Productivity
  2. Insurance Claims (Workers Comp)
  3. Retention and Attraction
  4. Absenteeism

Supporting Data

I) STANDING & SITTING TIME

AVERAGE TIME SPENT STANDING EACH DAY AT WORK: The average worker sits 6.3 Hours / day at work. [1]

AVERAGE STANDING TIME OF A SELF-REGULATED STANDING DESK USER: Data indicates that the average standing desk user stands only 38min/day or 0.63 hours/day [2]

AVERAGE STANDING TIME OF A STANDLOGIX USER: Because StandLogix optimizes daily standing and sitting time (experts recommend equally splitting sitting and standing time), the average worker will stand for 50% of the average 6.3 hours at their desk, or 3.15hours/day. [3]

ROI Supportng Data Table.png

TABLE SUMMARY:

  • Without standing desks: the average worker sits 6.3 hours/day or 1,581.3 hours/year or 65.9 days every year.
  • With standing desks: the average worker reduces their sitting time to 5.67 hours/day or 1,423.1 hours/Year or 59.3 days every year.
  • Standing desks with StandLogix: the average worker reduces their sitting time to 3.15 hours/day or 790.6 hours/Year or 32.9 days every year.

BENEFITS OF ADDING STANDLOGIX TO EXISTING STANDING DESK INFRASTRUCTURE:
Adding StandLogix to existing standing desk infrastructure will provide a total average of 3.15 hours of standing time per day; the existing standing desks will already account for 0.63 hours of that, leaving 2.52 hours due to StandLogix. This means that whatever the benefits are to an optimized standing day, StandLogix will account for 80% of those benefits.

CALCULATION:
(3.15[standing hours] – .63[sitting hours] ) / 3.15[standing hours] = 80%[Increase due to SL]

II) PRODUCTIVITY INCREASE

Many studies find upwards of 10% productivity increases due to sit-stand employees taking fewer and shorter breaks. [16,17] Savings assume an extremely conservative 2% increase in productivity per worker using a standing desk, based on an average salary of $44,888. [14]

III) ABSENTEEISM REDUCTION

86.1% of the working population is overweight or obese with 0, 1, 2 or 3 chronic conditions or normal weight with one to two chronic conditions. [18]

SEE TABLE BELOW FOR THE BREAKDOWN OF MEAN UNHEALTHY DAYS/MONTH PER GROUP TYPE:

Table - mean unhealthy days per month per group type.png

If you have 100 employees, the following table will indicate how many unhealthy days will be compiled amongst them. The total annual cost of absenteeism for a company with 100 employees is $177,935. With no current direct impact studies of sit-stand desks on absenteeism, we must make educated guesses on how they would impact absenteeism. Based on the impact of sit-stand desks on obesity, overweight, diabetes, and other chronic conditions, we can predict that sit-stand desks will reduce absenteeism rates by 22%, or a total annual savings of $39,145.

Table 2 -  calculation of mean unhealthy days per month per group type.png

VI) RETENTION AND ATTRACTION INCREASE

Analysis of 27 case studies reveals the typical (median) cost of turnover is 21% of an employee’s annual salary. [13] This percentage increases non-linearly as the annual salary increases (e.g., an exponential increase in R&A cost versus increase in salary). Savings assume a 16.4% average annual turnover rate, based on an average salary of $44,888. [4,14] For a company with 100 employees, based on a turnover rate of 16.4%, they will “lose” 16.4 employees per year at a cost of 21% of $44,888 salaries. Although subjective in nature, some findings Standing desks improve employee morale and are a valuable addition to benefits packages, with standing desks accounting for a 33% reduction in employee intentions to leave. [6]  We will use a value of 15% to be conservative.

IV) INSURANCE CLAIMS REDUCTION

A three-year review of 6,200 employees at American Express produced a finding that the overall MSD rate for those in non-adjustable workstations was three-times higher than those with adjustable workstations. The second finding was that work-related MSD costs for employees in non-adjustable workstations was 20-times higher (Kay. 2012). [28].  An effective ergonomics program using standing desks can help contribute to the reduction of Workers’ Comp Claims, and help to improve a worker’s productivity by keeping them on the job. [11]

Driven primarily by Workers’ Comp Claims, savings are based on 30% of reported injuries being Musculoskeletal Disorders (MSDs) with an average injury rate of 3.3 per 100 employees, and the average Worker's’ Comp Claim costing $17,065 per claim. Applying a reduction of 3x in claims rate, and a reduction in claims cost of 20x.

NOTE: Calculating the “total cost” (direct and indirect) of claims has many inconsistent variables such as: employee-to-employer cost liability; Industry; injury type; work days missed due to injury, etc.  Due to these variables, we have decided to omit all indirectly associated costs in our calculations. Additionally, this approach serves as a more conservative – and accurate – end cost for the total return on investment calculation.

C - References

1) “Office workers' objectively assessed total and prolonged sitting time: Individual-level correlates and worksite variations”  National Center for Biotechnology Information. <https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4929063/>

2) Dutta, Nirjhar, Gabriel Koepp, Steven Stovitz, James Levine, and Mark Pereira. "Using Sit-Stand Workstations to Decrease Sedentary Time in Office Workers: A Randomized Crossover Trial." International Journal of Environmental Research and Public Health IJERPH 11.7 (2014): 6653-665. Print.

3) Buckley, J. P., Hedge, A., Yates, T., Copeland, R. J., Loosemore, M., Hamer, M., … Dunstan, D. W. (2015). The sedentary office: a growing case for change towards better health and productivity. Expert statement commissioned by Public Health England and the Active Working Community Interest Company. British Journal of Sports Medicine, bjsports–2015–094618–. <http://doi.org/10.1136/bjsports-2015-094618>

4) "2015 Total Turnover Rates by Region." 2015 Total Turnover Rates by Region. Compdata, Web. 14 Mar. 2016. .

5) "Asset Lifecycle Model for Total Cost of Ownership Management." International Facility Management Association, Web. .

6) Gregory, Brodie. "Can Standing Desks Make For Happier Workplaces?" Rebel Desk. 03 June 2014. Web. <https://www.rebeldesk.com/can-standing-desks-make-for-happier-workplaces/>

7) Cross, Andrea. "Tech, Sun Belt Office Markets Lead Broad Recovery." Colliers International, Web. <http://www.colliers.com/-/media/Files/MarketResearch/UnitedStates/2014-NA-Highlights-Reports/Colliers_NA_Office_2014Q3_Final>

8) Peyton, Martha. "Is Commercial Property a Hedge against Inflation?" TIAA-CREF (2011): TIAA-CREF. 1 Sept. 2011. Web. 7 Jan. 2016. Managing Director, Strategy & Research, TIAA-CREF, Global Real Estate

9) Rado, Steve, and Michael W. Cox, Dr. "Commercial Property Outlook in a Rising Rate Environment." EY (2015): 1 Sept. 2015. Web.

10) Gallanter, Tisha, and William P. Bozeman. "Employer-reported Workplace Injuries and Illness - 2014." Prehospital Emergency Care 6.1 (2002): 22-26. Bureau of Labor Statistics - US Department of Labor. Web. <http://www.bls.gov/news.release/pdf/osh.pdf>.

11) Schroeder, Gregory P., , PT, DPT. "Work-Related Musculoskeletal Prevention." Orthopaedic Practice 09th ser. 21.1: 48-51 Web. <http://teamworkstherapy.com/pdf/Work%20Related%20Musculoskeletal%20Prevention-A%20Case%20Study%20of%20an%20Industrial%20Injury%20Prevention%20Program.pdf>.

12) Keehan, S. P., G. A. Cuckler, A. M. Sisko, A. J. Madison, S. D. Smith, D. A. Stone, J. A. Poisal, C. J. Wolfe, and J. M. Lizonitz. "National Health Expenditure Projections, 2014-24: Spending Growth Faster Than Recent Trends." Health Affairs 34.8 (2015): 1407-417. Print.

13) Boushey, Heather, and Sarah Jane Glynn. "There Are Significant Business Costs to Replacing Employees." Center for American Progress. 16 Nov. 2012. Web.

14) "National Average Wage Index." Official Social Security Website. Social Security Administration, Web. <https://www.ssa.gov/oact/cola/AWI.html>.

15) Cox, Linda L. "Planning Global Compensation Budgets for 2016." Economic Research Institute (2015): Web.

16) Puget Sound Human Factors and Ergonomics Society. Ergonomics Cost-Benefit Case Study Collection. Rep. Washington State Department of Labor and Industries, Web. .

17) Goggins, R. W., Spielholz, P., & Nothstein, G. L. (2008). Estimating the effectiveness of ergonomics interventions through case studies: Implications for predictive cost-benefit analysis. Journal of Safety Research.

18) Agrawal, S., Witters, D., & Gallup Healthways Well-Being Index. (2011). Unhealthy U.S. Workers’ Absenteeism Costs $153 billion. <http://www.gallup.com/poll/150026/unhealthy-workers-absenteeism-costs-153-billion.aspx>

19) Hemp, P. (2004). Presenteeism: At work but out of it. Harvard Business Review, 82(10), 49–58.

20) Juniper, B. (2012). Price of presenteeism. Occupational Health, 64(5), 26–26. <http://www.mas.org.uk/uploads/artlib/the-price-of-presenteeism.pdf>

21) The Sainsbury Centre for Mental Health. (2007). POLICY PAPER 8 Mental Health at Work: Developing the business case. Mental Health at Work: Developing the Business Case, Policy Pap.

22) Hargrave, G. E., Hiatt, D., Alexander, R., & Shaffer, I. A. (2008). EAP treatment impact on presenteeism and absenteeism: Implications for return on investment. Journal of Workplace Behavioral Health, 23(3), 283–293. <http://doi.org/10.1080/15555240802242999>

23) Berry, L. L., Mirabito, A. M., & Baun, W. B. (2010). What’s the Hard Return on Employee Wellness Programs?. Harvard Business Review, (December).

24) Kate Feather. June 16, 2011 Calculating the Cost of Employee Disengagement. <http://www.business2community.com/leadership/calculating-the-cost-of-employee-disengagement-038849#jrYrF0KlPPzbUEok.97>

25) Keith Ayers. The High Cost of a Lack of Engagement. <http://www.engagementisnotenough.com/pdfs/Cost_of_Engagement.pdf>

26) Schaufenbuel, Kimberly. UNC Kenan-Flagler Business School. 2013. Powering Your Bottom Line Through Employee Engagement.

27) <http://www.gallup.com/poll/181289/majority-employees-not-engaged-despite-gains-2014.aspx>

28) James; Witte, Stephen; McCabe Kevin; Nicholson, L. (2013). Establishing Sit-Stand Wellness Cultures in Large Enterprises. <https://network.aia.org/HigherLogic/System/DownloadDocumentFile.ashx?DocumentFileKey=edc73182-f985-4a29-bfd3-95acacea9085&forceDialog=0>