Benefits of promoting employee well-being in the workplace

A 2019 survey report by Virgin Pulse showed that 70% of leaders worldwide are investing in well-being programs, and they attributed this decision to the fact that such programs seem to have a positive impact on workplace culture. This means that when employees receive adequate support for their physical, mental, financial, and spiritual health, they tend to be more engaged, productive, and committed to their work. Backed by such studies, many organizations have made concerted efforts to care for their employees’ wellness, making employee well-being in the workplace not just a corporate obligation, but a strategy to enhance employee productivity, involvement, and retention.

In the past, the emphasis on employee well-being centered mainly on providing access to healthcare. However, contemporary work environments place greater importance on well-being programs that induce dopamine and good health for employees. Simply conducting a few one-on-one meetings, gathering employee feedback, and organizing team outings may not be sufficient to bring about meaningful benefits for anyone. These activities are a good starting point for building strong relationships with employees, but they must be complemented with more strategic and comprehensive approaches to employee management. You need to understand employees’ expectations and values before creating and implementing a plan. Read on to find out how can you reap the benefits of promoting employee well-being in the workplace

The importance of employee well-being in the workplace

Employee well-being is not solely about physical health but instead encompasses all aspects of well-being for employees. A healthy and successful employee is one who is thriving in all areas of their life, not just physically. It is important to acknowledge and prioritize all aspects of well-being when striving to create a healthy and functioning workplace.

If employees are better at handling stress, they are less likely to suffer from burnout. When the overall well-being of employees is improved, they tend to be more dedicated to their work, leading to increased productivity.

An employee’s sedentary lifestyle can heighten their risk for developing illnesses such as diabetes and high blood pressure, among others. Additionally, as per Gallup, employees who frequently experience burnout at work are 63% more likely to take sick days. As a result, employee well-being is closely linked to absenteeism and its associated costs for employers. Therefore investing in employee well-being can be financially beneficial for employers by creating programs that help employees take care of their health.

Also, offering employee well-being benefits that align with your prospective workforce is crucial if you wish to attract top-tier candidates who can guarantee the long-term success of your company.

Improved job performance

When employees are feeling their best, their energy levels are high, increased creativity and motivation, and better productivity. But when the employees are down sick, mentally and physically, presenteeism occurs. Presenteeism affects the quality and quantity of work output produced by the employees where employees are physically present at work but are not actually working due to poor health or other reasons. Addressing and understanding the relationship between employee well-being and productivity is necessary because both factors go hand in hand.

The Positive Impact of Employee Well-Being on Task Performance and Efficiency

There are many other factors that can influence the relationship between employee well-being in the workplace and productivity. An unhealthy mind and body directly affect creativity and motivation which leads to a loss of productivity.

There can be many reasons such as job frustration, inability to catch up with deadlines because the employee was sick, or absent mind, all of which are signs of increased stress and burnout and can be avoided by effective communication, task prioritization, and automation. On the other hand, when employees have sufficient resources and support to manage job demands, they are more likely to feel confident and competent, leading to higher levels of productivity.

Another important factor is the organizational culture and leadership style. A positive organizational culture that appreciates employee well-being and prioritizes work-life balance can promote higher levels of productivity. Leaders who prioritize employee well-being and model healthy behaviors can also have a positive impact on employee well-being and productivity.

Examples of how promoting employee well-being can lead to improved job performance

Johnson & Johnson provides its employees with access to a program called Energy for Performance®, which is aimed at improving employee well-being and productivity. According to J&J, 91% of employees who completed the course reported that they expected to see improvements in their productivity. Studies have shown that these expectations are justified, as workers who completed the program were 25% more likely to receive a promotion the following year. This highlights the potential benefits of investing in employee well-being and training programs that support employee performance and career development.

Higher retention rates

Without question, a high turnover rate negatively impacts a company’s image and morale.  Attributes like negative work culture and stress-ridden environment affect employees immensely. If these attributes are not mitigated by the company, it becomes harder for employees to stay which is why higher retention rates are a direct result of promoting employee well-being.  

The impact of employee well-being on retention rates

When employees feel that their organizations truly prioritize employee-wellbeing, they are more likely to stay with the company long-term. Employees are then satisfied with their work and life and feel a clear sense of purpose in their job when their mind and body are harmoniously coordinating, they are more likely to stay with the company and contribute to its success over time. 

Employee well-being has a significant impact on retention rates. When employees feel that their organization cares about their well-being, they are more likely to be loyal and committed to the company. Additionally, promoting employee well-being can help create a positive workplace culture, which can further boost employee satisfaction and retention. Employers can promote employee well-being by offering benefits such as flexible work schedules, corporate health and wellness programs, and opportunities for professional development.

Examples of how promoting employee well-being can lead to higher retention rates

Investing in employee well-being, employers can not only improve retention rates but also increase employee engagement and productivity, which can lead to improved job performance and overall success for the organization. According to HBR ( Harvard business review), SAS Institute has a voluntary turnover rate of 4%, which is attributed, at least in part, to a very successful employee wellness program.

Increased company success

Happy and healthy employees tend to be more engaged in their work, leading to higher productivity and improved job performance. By promoting health and well-being in the workplace, employers can reduce turnover, which can save the company time and money associated with recruitment and training. This can lead to organizational stability and allow for long-term planning and growth. Promoting employee well-being can contribute to improved company success by improving employee engagement, productivity, and retention, while also enhancing the company’s reputation and bottom line.

How Employee Well-Being Impacts Company Culture and Success

The success of a company is closely related to the well-being of its employees. When companies prioritize the well-being of their employees, it can lead to increased levels of engagement, productivity, and commitment to the organization’s goals. 

Retention rates also rise, as employers prioritize their well-being which leads to long-term growth for the employees. Additionally, promoting staff well-being can enhance the company’s reputation and brand, attracting top talent and improving customer loyalty. Neglecting to give priority to employee well-being can have adverse effects such as increased employee turnover, reduced morale, and lower productivity. Overall, the relationship between employee well-being and company success is mutually beneficial. 

Examples of how promoting employee well-being can lead to increased company success

A study published in the Journal of Occupational and Environmental Medicine found that companies with best-in-class workplace health programs may have a competitive edge in the stock market. The study compared the stock market performance of ten of the healthiest companies in South Africa to the market at large and found that healthy companies outperformed the Johannesburg Stock Exchange All Share Index in all nine investment scenarios tested. Additionally, a trio of studies conducted in the US found that companies with high-performing employee health and well-being programs outperformed the Standard and Poor’s index by 7% to 16% per year.

Cost savings

One of the many advantages of employee well-being is a substantial decrease in healthcare expenses. Wellness programs are initiatives in the workplace that focus on promoting healthy behaviors and tracking and reducing the risk of illness, ultimately leading to lower healthcare costs for employers. Apart from healthcare costs, employees are more likely to be productive at the workplace, thereby giving better output than others. They are less likely to skip a day due to illness and mental stress. 

By offering benefits such as flexible work arrangements or telecommuting, employers can reduce costs related to office space, equipment, and utilities. Lastly, promoting wellness at work can improve customer satisfaction and loyalty, reducing costs associated with customer acquisition and retention. In sum, investing in employee well-being can result in significant cost savings for an organization while improving employee morale, productivity, and job performance.

The potential cost savings of investing in employee well-being

Making a good investment in employee well-being will undoubtedly pay off organizations in ways such as consistently high productivity, better retention rates, and low absenteeism. Engaged employees are more committed to their work, are more likely to stay with their employer long-term, and are more likely to recommend their employer to others. When employees feel physically and mentally well, they are less likely to call out sick or show up to work when they are not feeling their best. Companies that invest in their employees’ well-being are more likely to retain their top talent. This can help reduce turnover rates and the associated costs of recruiting and training new employees. 

For instance, offering workplace wellness programs, healthy food options, and mental health resources, which can prevent chronic diseases, reducing healthcare expenses. Additionally, prioritizing employee mental health can boost productivity and retention, saving companies money on recruitment and training costs. By investing in employee well-being, businesses can create a healthier, more engaged workforce, which can lead to long-term cost savings and improved business outcomes.

Examples of how promoting employee well-being can lead to cost savings

Over the last few decades, Johnson & Johnson has observed a significant decrease in employees who smoke, have high blood pressure, and are physically inactive. This improvement in employee health has not only been beneficial for their well-being but has also resulted in cost savings for the company. J&J has saved around $250 million on healthcare costs over the past ten years due to these positive health outcomes. Additionally, between 2002 and 2008, the company saw a return on investment of $2.71 for every dollar spent on wellness programs, indicating that investing in employee well-being can lead to significant financial benefits for companies.

Conclusion

It is not sufficient for well-being to be merely words displayed on a wall, a standalone online program, or part of the company’s culture description on the website. Instead, it is crucial for leadership and management to lead by example and integrate well-being into the company’s culture.

Corporate well-being not only benefits the employees themselves but also has a positive impact on the bottom line of a business. While there are numerous benefits to implementing a wellness program, one of the most significant advantages is the potential cost savings for the business. When employees are healthier and happier, they are more productive and take fewer sick days. This can result in significant savings for the business in terms of reduced healthcare costs, decreased absenteeism, and increased employee retention. This can result in a more stable, dedicated workforce. 

More and more organizations are recognizing the importance of addressing employee well-being in the workplace. It has become increasingly clear that many workplace issues arise due to a lack of attention to the needs of employees. Failing to prioritize employee well-being can lead to a range of problems, such as stress, conflict, mental health disorders, and substance abuse. To tackle these issues, companies need to focus on potential solutions, such as improving leadership, and communication, and prioritizing employee learning, and overall well-being in the company. These solutions are essential for any organization that is committed to creating a healthier and more satisfying work environment for its employees.