How does employee wellbeing impact business outcomes?
Employee wellbeing is more and more a buzzing topic and with reason. Studies in the last many years show us that improving employee wellbeing is one way to directly impact your business’ key success metrics. In fact, a study from the Harvard Business School stated that there was “a positive correlation between employee wellbeing and productivity” and highlighted an evidence base for this causal effect.
Global Workplace Study 2020 by the ADP Research Institute reveals that Indian employees recorded the world’s second-highest levels of employee engagement. One in five (20 percent) feel they are fully engaged, though the larger majority reported wide levels of disengagement. Further, globally, only 14 percent of those surveyed admitted to being fully engaged at work in 2020, making workplace disengagement a worldwide trend.
How are the outcomes impacted by employee wellbeing?
Implementing and pushing for change takes some effort on the part of companies and a change in the philosophy of work expectations. However, driving people to work to the bone may produce short-term benefits but will down track individuals as well as the company in the long run. After all, a motivated employee can lead to a successful business.
So instead, let’s see what happens when companies adopt employee wellbeing as a priority:
Higher productivity and creativity
When employees are mentally well, they feel more engaged in their jobs, which helps them produce more work efficiently and creatively. A study by Gallup found that highly engaged teams show 21% greater profitability, while research from Deloitte indicates that organisations that promote mental wellbeing experience a 20% increase in creativity and innovation.
Lower absenteeism
Folks who feel motivated to work and are engaged in what they are expected to do, are more likely to show up to work. Healthier employees are less likely to take sick leave, directly influencing operational efficiency. Further, when employees believe that companies are investing in them, they are more likely to stay for a longer period, resulting in higher retention. For instance, Johnson & Johnson implemented wellness programs that resulted in a 40% reduction in sick leave. This promotes cost savings and improved workflow.
Employee and customer satisfaction
A culture that focuses on employee wellbeing feels encouraging to potential recruits and also encourages employees to invite others to join the company. Companies that focus on employee satisfaction get better results when asking customers about the likelihood of rebuying or referring the product to their friends.
Further, happy employees can lead to more satisfied customers. A study by Bain & Company indicated that organisations that have high employee satisfaction levels also see customer satisfaction increase by 10-15%. This can significantly boost sales and brand loyalty.
Morale and Team Dynamics
Being part of an organisation where individuals enjoy the process of working and find that they are supported is an important factor that boosts individual and team morale. Some days, knowing that there are different initiatives to look forward to or being able to get help also builds team familiarity and impacts dynamics. For instance, Netflix encourages a culture of feedback and recognition, fostering higher morale and stronger team dynamics.
The Harvard Business Review and Towers Warson show that companies with high morale may see employee performance increase by 20-25%
Building company reputation
Companies that foster a culture of wellbeing are likely to build a good reputation even by word of mouth. People trust individual stories over what they see on a company website or their social media. A survey by The Glassdoor shows that 69% of job seekers will not take a job at a company with a bad reputation highlighting the importance of wellbeing.
In conclusion With workplace settings, roles and the world as we know it changing since the COVID-19 pandemic, it is an organisational duty to develop a culture of wellbeing and care more than ever. Investing in employee wellbeing is beneficial to all, and requires thought to be made sustainable and be valuable to employees.
Employees who are in reasonable physical, mental, and emotional health are more likely to deliver optimal performance in the workplace and support the growth of your organisation. Remember, when people feel better, they do better!
FAQs
What role does management play in promoting employee wellbeing?
Leadership and the management of a company are crucial in employee wellbeing, as they can drive the importance of initiatives as well as promote implementation and follow-up. Further, their modelling and promoting wellbeing is necessary to set an example and create a larger atmosphere of taking care of ourselves. Management can create an environment of support through open communication, and prioritizing work-life balance. You can read more here.
What challenges do companies face in implementing wellbeing programs?
Some challenges that come up regarding wellbeing programs include limited budget, lack of understanding of employee needs, low participation in initiatives, difficulty in regular implementation or follow up and management’s lack of interest. Successful implementation requires strong leadership, clear communication, employee interest and ongoing evaluation.
What are some effective wellbeing programs?
First, consider that wellbeing needs to be holistic - it includes mental health as well as physical health as well as various incentives for individuals. Given that, some effective programs include free/subsidised mental health services, flexible work arrangements, fitness initiatives and employee assistance programs (EAPs). Tailoring programs to employee needs is crucial for effectiveness. Here are some researched ways of doing this.
