What Is Employee Wellbeing & Why Is It Essential To Your Business?

In today's competitive landscape, employee well-being is no longer just a nice-to-have; it's a must-have. Beyond physical health, employee well-being encompasses mental, emotional, and social factors that directly impact job satisfaction, productivity, and overall organizational success.

By creating a supportive environment where employees feel valued, empowered, and authentic, you're not just improving morale but investing in your business's long-term health.

Remember, Authenticity breeds belonging.

According to a report by the Office of National Statistics, around 4.3 days per employee are lost to sickness and injuries every year.

According to a May 2023 Gallup poll, 48% of U.S. employees experienced stress a lot the day before, and 17% experienced anger. However, only 23% of employees take breaks during their work hours, according to a report by Science Daily.

"If we leave the human factor out of our business calculations, we shall fail every time.,- said by William.H.Lever, founder of Lever Brothers."

A study by Wealth at Work revealed that 53% of employers recognize their responsibility to foster a positive and supportive work environment. You can help your business thrive by creating an environment where employees feel valued, empowered, and authentic.

Let's dive deeper into the importance of employee well-being and explore strategies for fostering a thriving workplace culture.

What is Employee Well-being?

Before delving deeper into the "Employee Well-being," you must have a fair idea about well-being. Well-being or wellness is about the experience of overall emotions and how one feels and interprets a situation.

Employee well-being encompasses a broad spectrum of factors that contribute to an individual's overall health and happiness in the workplace. It extends beyond physical health to mental, emotional, social, and financial well-being.

These include their relationships with colleagues, use of tools and resources, larger business decisions that impact them and their work, and many other factors.

WHO researchers found that employee well-being plays a critical role in organizational success. It is associated with increased productivity, reduced absenteeism, and improved employee morale. By improving employee wellbeing, organizations can achieve positive and sustainable work environments.

The Five Pillars of Employee Well-being

Employee well-being isn't just a feel-good initiative; it's a strategic investment in your organization's future. According to Gallup survey, employee well-being can be categorized into five key components:

1. Physical Well-being encompasses physical health, energy levels, and the ability to perform daily tasks. When employees prioritize their physical well-being, they experience increased energy levels, improved focus, and reduced absenteeism.

2. Social Well-being: Strong relationships with colleagues and a sense of belonging contribute to social well-being. Collaborative teams are more innovative and productive.

3. Financial Wellbeing: It refers to the ability of your employees to achieve personal financial wellness goals successfully. Financial security and stability are essential for overall well-being. Businesses offering financial wellness programs see increased employee retention and satisfaction.

4. Career Well-being: Feeling fulfilled and engaged in work is crucial for job satisfaction. Strong employee commitment benefits businesses that connect their work to a larger mission.

5. Community Well-being: A sense of connection to the broader community and a positive work-life balance contribute to overall well-being. A healthy work-life balance increases energy, motivation, and overall health.

Understanding these dimensions is fundamental for organizations to create a thriving workplace culture. By addressing employees' holistic needs, businesses can enhance productivity, reduce turnover, and foster a positive work environment.

Suggested Read: Understanding The 9 Dimensions Of Wellness

Why Is Employee Well-being Important To Your Business?

Employee well-being is no longer a fringe benefit; it's a strategic imperative for organizational success. Employee well-being affects productivity, retention, and recruitment, which impacts an organization's bottom line.

Unhappy employees are disengaged. According to the Bureau of Labor Statistics, more than 3 million people leave their jobs voluntarily every month. American companies are estimated to lose $1 trillion annually due to employee turnover.

However, improving employee well-being isn't just about altruism. Organizations must recognize that employee well-being is holistic and goes beyond providing gym memberships or occasional mental health workshops.

Let's discuss why it's essential to prioritize employee well-being in the workplace in the first place -

• Employee engagement and well-being are intricately linked, forming a powerful synergy that drives organizational success. These two factors are not mutually exclusive but complementary, amplifying the other's positive impact.

• Employee Engagement and well-being cyclically influence each other. Engaged employees tend to experience higher levels of well-being, while those with high well-being are more likely to be engaged.

Gallup Research highlights the significance of this connection:

• 62 % of employees struggling with overall well-being are at a higher risk of burnout and decreased productivity.

• High levels of employee well-being can mitigate the negative impacts of stress and burnout, leading to increased engagement and job satisfaction.

Again, employee well-being is a great retention booster. Engaged and thriving employees are more likely to be productive, innovative, and loyal to the company.

Engaged employees who prioritize well-being are:

• 32% less likely to be job searching

• Less susceptible to burnout, stress, and anxiety

• More likely to go above and beyond in their roles

It further helps to attract talent and decrease turnover rates. Well-being and work-life balance have become particularly important. 62% of U.S. workers say having a greater work-life balance and better personal well-being is crucial when considering working with a different organization.

Identifying Factors That Impact Well-being At Work

The evolving landscape of work has significantly impacted employee well-being. To determine how to improve employee wellbeing at work, it is important to understand what impacted employee well-being in the first place. Here are a few factors that have contributed to the challenges faced by today's workforce:

• The Great Resignation: The pandemic accelerated a shift in employee priorities, with many re-evaluating their work-life balance and seeking more fulfilling roles.

• Remote and Hybrid Work: While offering flexibility, remote work has blurred the lines between work and personal life, leading to increased stress and burnout.

• Economic Uncertainty: Global economic conditions, such as inflation and recessionary fears, have created financial stress for many employees.

• Technological Advancements: Rapid technological changes can lead to job insecurity and the need for constant upskilling.

• Increased Workload: Employees often juggle multiple responsibilities, leading to burnout and decreased job satisfaction.

These factors collectively contribute to the complex well-being challenges faced by today's workforce. Organizations must address these issues to create a thriving work environment.

Who Owns Employee Well-being? A Shared Responsibility

Employee well-being is a shared responsibility that requires collaboration across an organization. While HR professionals often take the lead, all levels must contribute to creating a thriving workplace culture.

• The Role of Different Stakeholders

1. People Professionals (HR)

The HR teams are mostly responsible for developing well-being strategies. They develop programs, policies, and initiatives to promote employee health and well-being. By collaborating with leadership and other departments, HR can promote a culture of well-being throughout the organization.

2. Senior Management

Leadership sets the tone for the organization's commitment to well-being. When senior leaders prioritize employee health and well-being, it sets an example to employees that their welfare is a top priority.

3. Managers/Team Leads

Managers play a crucial role in implementing employee well-being initiatives. They can identify early signs of stress, provide support, and create a positive team culture.

4. Employees

Employees are responsible for prioritizing their own well-being through self-care and seeking support when needed. They will only benefit from well-being initiatives if they participate and care for their health and well-being outside work.

5. Occupational Health Professionals

Occupational health is a specialist branch of medicine that focuses on workplace health. Its responsibility is to assist employees and managers with health and safety in the workplace.

Suggested Read: The Role of An HR in Workplace Wellness Programs

7 Management Tips for Improving Employee Well-being at Work

The old saying, "People don't quit bad jobs; they quit bad managers," has stood the test of time.

One of the primary reasons people stay or leave an organization is the management. Managers and leaders play a significant role in supporting employees. An organization's workplace culture, benefits, and employee well-being programs can still be ineffective if the manager is poor.

For any organization, supporting employee well-being begins with training management to be thoughtful and compassionate leaders. Here are seven ways managers can improve employee well-being -

1. Lead By Example

Team leaders or managers prioritizing their well-being demonstrate its importance to their employees. When leaders model healthy work habits, employees are more likely to follow suit and prioritize their physical and mental health.

Here's how leaders can promote employee well-being through their actions:

• Demonstrate a commitment to physical health, mental well-being, and work-life balance.

• Lead by example by taking breaks and vacations to recharge.

• Share your self-care practices and encourage others to do the same.

• Create a culture of open communication where employees feel comfortable discussing their concerns about well-being.

2. Empower Employees By Recognizing and Appreciating Efforts

Leaders must recognize and appreciate employees' efforts to maintain a healthy work-life balance and engage in wellness activities. Their encouragement reinforces the idea that the organization values and celebrates well-being. The Vantage Circle platform, for example, helps you recognize and appreciate employees in this way.
Another crucial step towards well-being is to empower employees by granting them autonomy while linking their roles to the organization's broader goals. This fosters a sense of purpose and recognition, which are essential elements for employee well-being.

To address deep-rooted issues impacting employee well-being, you must identify and address the root causes. You can create a sustainable and long-lasting solution by focusing on the underlying factors.

3. Foster Open Communication About Mental Health

Mental health concerns are no longer a taboo subject. With anxiety and depression at an all-time high, especially in millennial and Genz workers, it's important to acknowledge mental health concerns and build a corporate culture where employee mental health is prioritized.

Leaders should actively promote mental health awareness and create an environment where discussing mental health is destigmatized.

Keeping communication open with employees is crucial to prevent stress and burnout. Asking simple questions can help employees perceive their managers as supportive. These include:

• How do you feel about your workload?

• Would you like some help completing your tasks?

• Do you have any family obligations this week that we need to address?

• Do you need anything from management to support you?

It is also important to follow up on this support. It shows that managers are invested in their team's well-being.

4. Implement an Employee Wellbeing Program

Employee wellness programs are essential for creating a supportive and productive work environment. By investing in employee well-being, organizations can reap significant benefits, including reduced absenteeism, increased productivity, and improved employee morale.

To implement a successful wellness program, consider the following steps:

• Conduct surveys or focus groups to understand your employees' needs and preferences.

• You can implement tailored wellness programs like Vantage Fit that address identified areas, such as mental health, physical fitness, spirituality, or work-life balance.

• Encourage employee participation and feedback throughout the program development and implementation process.

• Track key metrics to assess the effectiveness of your wellness programs and make necessary adjustments.

Implementing effective wellness programs and leveraging tools like Vantage Fit can create a positive and supportive work environment that benefits employees and the organization.

5. Provide Support Mechanisms for Employees Who Are Struggling

Companies that consider their employees' mental health issues can make a big difference in employee well-being. If your employees struggle at work, they might find it difficult to speak up out of fear of embarrassment or judgment. But you can break this stigma around mental health by being more supportive and providing help.

From covering mental health-related expenses to providing additional EAP resources, you can help your employees get the help needed. Through EAP, you can quickly provide much cheaper or even free accessible mental health services and counseling intervention.

6. Empowering Well-being Coordinators

Wellness coaching, experts, and counselors are essential resources to help employees develop strategies and skills tailored to their situations, strengths, and values.

This is particularly true for mental health, where the best workplaces rapidly expand their support.

Leaders can support well-being coordinators and consultants by providing the necessary resources, budget, and time to implement well-being initiatives effectively.

7. Welcome Feedback

A disconnect often exists between what managers believe their employees need and what they need. The best way to bridge that gap is to ask employees what they need and follow up on their suggestions.

Whether having weekly check-in meetings, emailing, or asking employees to complete a survey, employees should be encouraged to share all their negative feedback.

As soon as feedback is received, the employer should consider it and be transparent about what is and isn't possible.

How Can You Effectively Measure Employee Well-being?

To measure the ROI of a wellness initiative, you must collect baseline data on the population or the members of your organization and monitor data measures periodically to assess progress.

However, here are a few more ways to measure the success of your well-being initiatives at work -

• To ensure that any investment is profitable, you must first collect baseline data for evaluation.

• You can conduct health interest surveys, health risk surveys, health risk questionnaires, and biometric screenings, which provide basic best-practice assessments.

• Design surveys with tools like Vantage Pulse that focus on specific aspects of well-being, such as engagement, workload, mental health, and work-life balance.

• Analyze survey data to identify trends, areas for improvement, and inform well-being initiatives. Track metrics such as absenteeism rates, turnover rates, and productivity levels.

• Track metrics such as absenteeism rates, turnover rates, and productivity levels.

• Schedule regular check-ins with employees to discuss their well-being, workload, and any challenges they may be facing.

• Introduce health risk assessments and biometric screenings at work. It can provide valuable insights into employee health and risk factors.

• Regularly review the data to identify trends and target specific health issues.

Download our free guide on Corporate Wellness Programs for implementing a better employee experience.

Create a Tailored Employee Well-being Strategy with Vantage Fit

Vantage Fit offers comprehensive tools and resources to help organizations create and implement effective employee well-being strategies. Here's how to get started:

1. Assess Your Organization's Needs

• Identify and determine which aspects of employee well-being require the most attention (e.g., physical health, mental health, work-life balance).

• Conduct surveys or focus groups to understand employee needs and preferences.

2. Leverage Vantage Fit's Features

• Create customized wellness plans for employees based on their individual goals and preferences.

• Offer access to meditation, mindfulness exercises, and mental health stimulation tools.

• Organize virtual challenges, fitness challenges, yoga sessions, step challenges, and more to foster a sense of community.

• Track employee progress, identify trends, and measure the impact of your well-being initiatives.

3. Implement and Measure

• Integrate Vantage Fit into your existing HR systems and company culture.

• Promote the benefits of using Vantage Fit and provide ongoing support.

• Monitor employee engagement, satisfaction, and well-being outcomes to measure the effectiveness of your program.

• Regularly collect employee feedback to identify areas for improvement.

• Make necessary changes to your well-being strategy based on evolving needs and trends.

Vantage Fit can provide the tools and resources you need to create a thriving workplace culture that prioritizes employee well-being. By leveraging our platform, you can empower your employees to take control of their health and well-being, leading to increased productivity, engagement, and overall success.

Would you like to explore specific use cases or success stories of organizations using Vantage Fit?

FAQS

1. How does employee wellbeing differ across various industries?

Employee wellbeing can vary across industries due to factors such as job demands, work culture, and industry-specific stressors.

2. Why is employee wellbeing a major concern?

Employee well-being is increasingly recognized as a crucial component of workplace productivity and employee retention. An employee who has positive physical and emotional health is more likely to show better commitment at work.

3. How can employers address wellbeing in a multicultural workforce?

Employers should create a culturally inclusive environment that values diversity and respects individual differences. This includes providing language support, cultural training, and accommodating religious and cultural practices.