According to the Harvard Business Review Analytic Services Report (2019), 87% of survey respondents believe that prioritizing workforce wellbeing adds business value, with 76% noting increased expectations compared to five years ago.

Work is a major contributor to our health and wellbeing. Based on a recent study, (Peters et al, 2021) the importance of work-related wellbeing, and thriving from work, as critical worker outcomes are supported by evidence and practice.

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THE EVOLUTION OF WORKPLACE WELLBEING OWNERSHIP

In our fast-paced world, the lines between personal and professional life blur, marking a significant shift from the past. The ownership of wellbeing was once primarily in the hands of individuals and society.

As work becomes an integral part of our lives, companies are taking on more ownership of their employees' wellbeing. They are responsible for breaking down systemic barriers to wellbeing by transforming policies and systems to be more inclusive, equitable, flexible, and human-centered.

Burnout is not the employee’s problem. Losing top talent is a sign of systemic failure, not a ‘trend’. (Lisa Duerre, 2023)

A paradigm of shared responsibility for employee wellbeing involves individuals, organizations, and society. This perspective signals a transformation, acknowledging companies as vital contributors to individual wellbeing.

Thinking of employee wellbeing, what does your company stand for?

What is your company's guiding philosophy when it comes to prioritizing workplace wellbeing? How and where do you see this value alive in your organization?

Many companies often assert that “our people are our most important asset,” yet, in practice, they frequently fall short in strategically prioritizing this commitment.

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THE BUSINESS CASE FOR INVESTING IN WORKPLACE WELLBEING

In today's dynamic business landscape, leaders face the intricate task of striking a balance between driving profitability and prioritizing employee wellbeing. The ongoing pursuit of productivity often overshadows the significant element of the workforce's wellbeing.

Measuring the positive impact of employee wellbeing on business success is uniquely challenging, as conventional business KPIs struggle to capture its intangible elements.

The challenge is to define indicators that link employee wellbeing with productivity, job satisfaction, and overall business performance, forming a comprehensive measurement framework. Gartner research shows that just 10% of HR leaders tracked wellbeing ROI with formal, quantitative metrics in 2020.

Metrics for employee wellbeing are still evolving, and their connection to main business KPIs requires nuanced exploration.

How do companies justify the investment in wellbeing and make the case for long-term commitment?

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UTILIZING EVIDENCE-BASED RESEARCH TO INFORM STRATEGIC DECISION-MAKING

In making informed decisions to invest in workplace wellbeing, leaders are using evidence-based research and case studies that give insight into workplace wellbeing positive, tangible benefits to employee engagement, productivity, and overall business growth.

The evidence base for why workplace wellbeing matters is well established.

Numerous studies highlight the tangible business benefits of prioritizing workplace wellbeing for organizational growth.

Lower costs

What companies may not realize is the substantial cost of ignoring employee wellbeing. Global costs associated with turnover and lost productivity because of low wellbeing reach an estimated $322 billion, with employee burnout being a significant contributing factor.

Research by Gallup & Workhuman (2023) indicates that neglecting employee wellbeing results in decreased productivity, low engagement, burnout, and high turnover rates.

To help employees work better

Multiple research studies consistently indicate that companies investing in employee wellbeing experience tangible benefits such as lower turnover, improved engagement, and increased productivity.

• Companies with robust wellbeing programs experience a significant increase in productivity, with a 20% boost in employee performance.
• A study published in Management Science (2018) revealed that companies fostering employee health and wellbeing experienced a 5% boost in productivity, equivalent to an extra day of output each month.
• The correlation between employee wellbeing and reduced turnover is evident, as organizations embracing wellbeing initiatives report a 30% lower turnover rate.

Great Place To Work® adopted a workplace wellbeing element, besides profit to survey companies to recognize “The 100 Best Companies to Work”. According to them, the 100 Best Companies prove that employee experience is not only compatible with profitability, it’s vital to achieving fiscal goals. Wellbeing is viewed as “whole-being” at these companies, where 58% of employees are flourishing.

To stay competitive

A recent Oxford University paper (Workplace Wellbeing and Firm Performance, 2023) highlights that prioritizing employee wellbeing has the potential to transform companies and drive long-term business success.

To attract and retain the best talent

If organizations resist improving their workforce wellbeing, they will increasingly find it difficult to compete for talent that values these critical missions.

According to a Gympass poll, 73% of employees would contemplate joining firms prioritizing employee wellbeing. Furthermore, 85% are inclined to remain in their current roles when their employers prioritize wellness.

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LEADERS, WE ARE INVITING YOU TO ENGAGE IN A WORKPLACE WELLBEING CONVERSATION WITH YOUR TEAM.

The quote by Linda Lambert “One good conversation can shift the direction of change forever”. We believe that intentional leadership conversations focused on workplace wellbeing in relationship with business objectives can help justify the investment in wellbeing and make the case for long-term commitment.

Following XCHANGE approach guidelines, we created a set of questions that can help leaders facilitate this conversation with the leadership team.

INITIATE CONVERSATION

What do you want to achieve, thinking about workplace wellbeing (context)?

What results and specific impact would you like to see?

How do you want to position workplace wellbeing in your company mission/strategy?

IDENTIFY THE PURPOSE

Why is prioritizing workplace wellbeing important? For you? For the leadership team? For employees? For the company?

How and where do you see the wellbeing value alive in your organization? What are specific work examples or practices? What do you want to carry forward?

Where do we see wellbeing value in alignment with the actions?

IMAGINE THE FUTURE OPPORTUNITIES

What becomes possible when you start prioritizing the wellbeing efforts in the company? For you? For the employees? For company?

One year from now, what future would you like to see? For yourself? For your leadership team? For the company?

INNOVATE SOLUTIONS AND PROGRAMS

Focusing on the future image(s), what are some workplace wellbeing initiatives that energize you? Generate 3-5 ideas in the context of How Might We (HMW) ….

• HMW understand what wellbeing means. For the leaders? For the employees?
• HMW create inclusive work environments.
• HMW treat employee mental health and wellbeing as a strategic priority.
• HMW effectively addresses toxic behaviors.
• HMW invite employees’ voices to cocreate the wellbeing culture?
• HMW measure workplace wellbeing?
• HMW communicate our workplace wellbeing efforts and initiatives to the employees.
• HMW resource our leaders with tools and support to prioritize wellbeing.

IMPLEMENT

Choose 3-5 actions to prioritize and act on to move yourself and your team forward.

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We have an invitation for you...

Are you passionate about rebooting workplace wellbeing for your organization?

Join us in our next interactive RLD Executive Forum

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REFERENCES

1. Thriving from Work (2021): Conceptualization and Measurement, by Susan E. Peters, Glorian Sorensen, Jeffrey N. Katz, Daniel A. Gundersen and Gregory R. Wagner.

2. https://community.thriveglobal.com/lisa-duerre-on-how-we-need-to-adjust-to-the-future-of-work-2/

3. https://www.gartner.com/en/articles/5-key-trends-that-make-well-being-programs-effective

4.  What’s the Hard Return on Employee Wellness Programs? (HBR, 2010) by Leonard L. Berry, Ann M. Mirabito, and William B. Baun

5. https://www.fastcompany.com/90899166/the-business-case-for-investing-in-employee-well-being

6. Doing Well by Making Well: The Impact of Corporate Wellness Programs on Employee Productivity (2018): Timothy Gubler, Ian Larkin and Lamar Pierce

7. https://www.forbes.com/sites/jimpurcell/2020/02/11/employee-wellbeing-a-new-perspective-on-roi/?sh=782bc65d574d

8. https://learninglab.xchangeapproach.com/