What Is Employee Wellbeing? And Why Does It Matter?

• What Is Wellbeing?
• Why should HR leaders care about employee wellbeing?
• The elements of wellbeing
• The benefits of employee wellbeing
• The difference between employee wellbeing and employee engagement
• How does wellbeing affect employee engagement?
• How can you effectively measure employee wellbeing?
• Why should employers invest in employee wellbeing?

Given the current global challenges, such as the rising cost of living, economic instability, and geopolitical tensions, people are experiencing heightened levels of stress and uncertainty. This is compounded by the fact that many people spend a significant portion of their time at work, where the demands and pressures of the job can further exacerbate these feelings. Recognising the impact of these external factors on employee wellbeing, it has become increasingly important for organisations to prioritise the mental health and happiness of their workforce. This blog aims to serve as a comprehensive resource for employers and employees alike, offering insights and strategies to enhance workplace wellbeing.

What Is Wellbeing?

Wellbeing encompasses a holistic state of health and happiness, extending beyond physical fitness to include mental and emotional wellness. It’s about achieving a balance in various aspects of life, such as work, relationships, and personal growth. At its core, wellbeing reflects an individual’s overall satisfaction and quality of life.

In the workplace, employee wellbeing refers to the physical, mental and emotional health of individuals within an organisation. Measuring employee wellbeing can be done by looking at things like overall job satisfaction and work-life balance. Factors such as workplace culture, job demands, and access to resources and support can influence employee wellbeing.

Why should HR leaders care about employee wellbeing?

According to Gallup’s State of the Global Workplace Report, 44% of employees worldwide say they are stressed. The data shows that employee stress has been rising over the past decade, but the pandemic has contributed significantly to the rise in numbers. While numerous factors contribute to stress levels, research conducted by Gallup indicates that managers significantly impact the stress experienced by workers in their roles, thereby influencing their overall daily stress levels.

Organisations that prioritise employee wellbeing foster a positive work environment where employees feel valued, supported and motivated to perform at their best. Within the organisation, HR leaders play a pivotal role in shaping the experience of the employees. By prioritising employee wellbeing, HR leaders can encourage a positive work culture, improve retention rates, and boost overall productivity. Additionally, prioritising employee wellbeing can help attract top talent and enhance employer reputation in the competitive job market.

The Elements of Wellbeing

By understanding the key components of wellbeing, HR leaders can learn how to support employee mental health, develop targeted strategies to address the diverse needs of their workforce, creating an environment where employees can thrive.

So, what are the main pillars of employee wellbeing? Here are some domains of wellbeing that CIPD, an organisation dedicated to enhancing HR practices, has outlined:

Health

In the UK alone, approximately 1.8 million employees reported experiencing work-related health issues during 2022 and 2023. Half of these cases were attributed to stress, depression or anxiety. Health is undeniably a cornerstone of wellbeing, encompassing both the physical and mental dimensions. It involves not only access to healthcare services but also the cultivation of healthy lifestyle habits that contribute to overall wellness. Regular exercise, balanced nutrition, sufficient sleep, and stress management are all integral components of maintaining optimal health. Additionally, mental health awareness and support play a crucial role in promoting wellbeing, as psychological resilience and emotional balance are essential for navigating life’s challenges.

In the context of employee wellbeing, prioritising health translates into offering comprehensive healthcare benefits, wellness programs, and resources to support employees in achieving and maintaining their health goals.

Good work

Meaningful work contributes significantly to an individual’s sense of purpose and satisfaction. This encompasses tasks and responsibilities that resonate with one’s skills, values, and aspirations, nurturing a sense of fulfilment and accomplishment. Additionally, autonomy in decision-making empowers individuals to take ownership of their roles and contribute meaningfully to their organisations.

Creating an environment that supports good work involves offering challenging and rewarding tasks, as well as providing opportunities for skill development and advancement, and acknowledging employees’ contributions. This not only enhances job satisfaction but also leads to a positive work culture, conducive to employee engagement and retention.

Values/principles

Values and principles form the ethical and moral framework that guides individuals’ actions and decisions in both personal and professional settings. They encompass beliefs, attitudes, and standards that shape behaviours and purpose. According to McKinsey, 70% of employees derive their sense of purpose from their work, highlighting the importance of aligning personal values with organisational principles.

If personal values and organisational principles align, they create a sense of authenticity and integrity, promoting psychological well-being and job satisfaction. An organisation that prioritises employee values creates a supportive and inclusive culture where individuals feel heard, respected and empowered. By upholding ethical standards employers can cultivate trust and loyalty among employees, contributing to a positive work environment and overall wellbeing.

 Collective/social

Collective and social wellbeing refers to the quality of relationships and sense of belonging within a community or social group. It encompasses feelings of connection, support, and camaraderie among individuals, both within and outside the workplace.

Fostering a sense of community and belonging in the at work is crucial. Teamwork, open communication, social and team-building events are all ways of enforcing this aspect of wellbeing within the company.

Personal growth

Personal growth is an integral component of wellbeing, encompassing the pursuit of self-improvement, learning, and development. It involves setting and achieving personal goals, expanding one’s skills and knowledge, and embracing new experiences and challenges. Individuals who prioritise personal growth are more likely to experience a sense of fulfilment, purpose, and satisfaction in their lives.

For employees, opportunities for personal growth and development are essential for fostering engagement, motivation, and career advancement. Employers can support personal growth by offering training and development programs, mentorship opportunities, and resources for continuous learning.

Good lifestyle choices

Making good lifestyle choices is vital for overall wellbeing, encompassing habits and behaviours that promote physical, mental, and emotional health. This includes maintaining a balanced diet, engaging in regular exercise, getting an adequate amount of sleep, managing stress effectively, and avoiding harmful substances like tobacco and excessive alcohol consumption.

Wellness programs, access to fitness facilities and mental health resources are ways employers can educate about and guide employees into making good lifestyle choices. Encouraging healthy habits among employees not only improves their wellbeing but also boosts productivity, reduces absenteeism, and creates a positive organisational culture focused on employee health and happiness.

Financial wellbeing

Financial wellbeing involves effectively managing finances, including budgeting, saving, investing, and planning for the future. It is a crucial aspect of overall wellbeing because it influences individuals’ sense of security, stability, and freedom.

Having employees prioritise financial health contributes to their overall well-being, enabling them to perform optimally in the workplace. According to the Harvard Business Review, 80% of employees admit to experiencing financial stress, yet only 28% of employers provide financial wellness initiatives. Financial wellbeing programs and initiatives can provide employees with financial education, tools for managing debt, retirement planning resources, and access to financial counselling services. By supporting employees’ financial wellbeing, employers can reduce financial stress.

The benefits of employee wellbeing

 Over the years, we have observed that investing in employee wellbeing yields benefits that extend far beyond health outcomes. It directly impacts various facets of the business, contributing to long-term success and sustainability. We caught up with CEO of CCS Konstantin Von Vietinghoff to discuss success stories of companies that have implemented strong mental health support programs –

“There are many success stories, and in various countries. The level of awareness has clearly seen a strong uplift during the Covid period. Regulatory frameworks address the issue in a much more pointed way, leading to better recognition of impact and relevance. Educational elements play more and more of a major role, involving middle management.”

– Konstantin Von Vietinghoff, CEO, CCS (See LinkedIn profile).

Wellbeing directly impacts engagement, which in its turn, directly impacts how committed people are to the organisation’s mission and goals. Stability in the workforce establishes a solid foundation for sustainable growth, resilience, and success in an ever-evolving business landscape.

Drawing from our 35 years of experience in this field, here are some of the advantages of investing in workplace wellbeing:

Reduced healthcare expenses

As stated by the Centers for Disease Control and Prevention, stress contributes to 75% of all medical consultations. By investing in employee wellbeing programs, organisations can lower healthcare costs associated with preventable illnesses and chronic conditions. These programs often include Employee Assistance Programs (EAP), wellness workshops, and access to fitness facilities, which contribute to overall health and well-being.

Less absenteeism

According to the Centers for Disease Control and Prevention (CDC), in the United States, absenteeism-related productivity losses amount to $225.8 billion annually, equating to $1,685 per employee. Employees with higher levels of wellbeing are less likely to take sick leave or experience absenteeism, resulting in improved attendance and productivity. When employees feel physically and mentally healthy, they are more likely to show up for work consistently and perform at their best.

Improved employee engagement

Low employee engagement is estimated to cost the global economy $8.8 trillion, representing 9% of global GDP. Joe Clifton, CEO of Gallup, also states enduring a job one despises can be more detrimental to overall well-being than being unemployed and that the negative effects of workplace dissatisfaction often spill over into personal lives, affecting relationships with family members.

Employees who feel valued and supported by their employers are more engaged in their work, leading to higher levels of job satisfaction. Organisations that prioritise employee wellbeing often see increased employee loyalty, commitment, and enthusiasm for their work.

 Enhanced employer reputation

Organisations that prioritise employee wellbeing are perceived as desirable employers, attract top talent and are recognised as a positive employer brand. Employees are more likely to recommend their employer to others and speak positively about their workplace culture, contributing to a strong reputation in the industry. 

Heightened feelings of empowerment

When employees have access to resources and support for their wellbeing, they feel empowered to take control of their health and happiness, leading to increased motivation and morale. Employers can empower their workforce by offering flexible work arrangements, mental health training and webinars, and opportunities for personal and professional development.

Avoids burnout

Employee wellbeing initiatives can help prevent burnout by promoting work-life balance, stress management, and resilience-building strategies. By addressing the root causes of burnout and providing support for employees’ mental and emotional health, organisations can create a more sustainable and fulfilling work environment for their employees.

What is the difference between employee wellbeing and employee engagement?

While employee wellbeing focuses on the overall health and happiness of employees, employee engagement refers to the level of commitment and enthusiasm employees have towards their work and the organisation.

How does wellbeing affect employee engagement?

Employee wellbeing and engagement are closely intertwined. When employees feel physically, mentally, and emotionally well, they are more likely to be engaged in their work, committed to organizational goals, and motivated to perform at their best. 

How can you effectively measure employee wellbeing?

There are various methods to effectively measure employee wellbeing, including surveys, interviews, focus groups, and assessments. Surveys can gauge employee perceptions of their physical health, mental health, work-life balance, job satisfaction, and stress levels. Interviews and focus groups allow for in-depth discussions to explore employees’ experiences and identify areas for improvement. Assessments, such as the Psychological Stress Risk Assessment (PSRA), provide quantitative data on stress levels and potential risk factors within the workplace. Additionally, Employee Assistance Programs (EAPs) play a crucial role in measuring and supporting employee wellbeing by offering confidential counselling services, mental health resources, and proactive interventions. EAPs can track utilisation rates, employee feedback, and outcomes to assess the effectiveness of their programs in improving employee wellbeing. Integrating these measurement strategies can provide valuable insights and support for promoting a healthy and thriving workforce.

Why should employers invest in employee wellbeing?

Employers should invest in employee wellbeing because it leads to a happier, healthier, and more productive workforce. By prioritising employee wellbeing, organisations can reduce turnover, enhance performance, and build a positive workplace culture that attracts and retains top talent. Investing in employee wellbeing is not just beneficial for employees; it’s also a strategic business decision that yields long-term benefits for the organisation as a whole.

Choosing the right partner for employee wellbeing initiatives is crucial for ensuring the success and effectiveness of these programs. With over 35 years of experience in providing corporate counselling services, CCS offers unmatched expertise and support in promoting employee wellbeing. Our scientifically driven services incorporate validated methods and approaches to counselling, ensuring measurable outcomes and sustainable results.

For more details or personalised offers we welcome you to get in touch with us at: https://ccsint.com/contact/