If you are familiar with my work at all, then you will know that I am a firm believer in a people-first approach to workplace culture.
What does that mean exactly? Check out this blog, Why a People-First approach is no longer just a nice to have.
And because I adopt a people-centric philosophy, then it’s probably pretty darn obvious that I am going to be a proponent of the importance of workplace wellbeing.
Because a people-first approach means:
The leaders of people-centric companies understand that it’s people who make their company successful. These companies realise that when people feel valued and cared for, they do their work with stronger intrinsic motivation, a deeper sense of meaning, and a greater level of engagement. They go the extra mile simply because they want to contribute to an organisation that cares about them.
If, by the off chance you don’t subscribe to the people-centric approach, and/or are more about the $ and the #s, then let me explain it this way:
- Healthy workers are up to 3 times more productive than unhealthy workers
- For example, an unhealthy worker will deliver 49 hours effective work per month vs an healthy worker who will deliver 143 hours effective work per month
- Healthy workers are less absent from work, and more engaged and productive when present at work
- For example, an unhealthy worker will take on average 18 sick days per year vs a healthy worker who will take an average of 2 sick days per year
- Healthy workers are fit, energetic, alert, more creative, productive and innovative vs unhealthy workers who have more often have low concentration and energy levels
- Research by the CEB, now Gartner (CEB) found that companies that invest in employee wellbeing outperform their peers in terms of financial performance, with a return on assets (ROA) that is up to 3 times higher
- According to a study by the World Health Organization (WHO), companies that invest in employee health and wellbeing see a significant increase in productivity, as much as 25%.
- Being known as an employer who values employee wellbeing makes organisations’ attractive to good talent.
- A study by Gallup found that employee engagement is linked to higher rates of retention. When employees feel that their employer cares about their wellbeing, they are more likely to stay with the company.
- This means a healthy organisation will attract and retain good talent – in turn saving on recruitment and training costs.
- In this social media age, how you treat your employees and a damaged reputation or bad news can spread quickly. No-one wants to work for an organisation known for poor treatment of its workforce.
- A study by Glassdoor found that companies with a strong focus on employee wellbeing and positive workplace culture are more likely to attract top talent and maintain a positive reputation among current and potential employees.
These are just some of the reasons why organisations, whatever their size and irrespective of their industry, should prioritise employee wellbeing.
Because investing a little time and money to create a wellbeing program can deliver a substantial direct and indirect ROI.
PWC reported in 2014 that workplaces who take effective action to create mentally healthy workplaces can expect a ROI of $2.30 for every $1 spent.
I think we can all agree that is a decent ROI!
What happens when you don’t prioritise workplace wellbeing…
We’ve explored all the benefits that come from prioritising the wellbeing of your staff, but what is the fallout if you don’t?
Here are yet more stats to tell the tale…
Work-related stress is the second most compensated workplace illness or injury in Australia, after musculoskeletal injuries.
Poor health and wellbeing has been linked to increased presenteeism and absenteeism. Presenteeism alone is estimated to cost the Australian economy $36 billion annually. (McKinsey)
If wellbeing is not a priority in your business, then your employees are at risk of burnout.
The latest Microsoft Work Trend Index showed that Australian workers suffered a higher level of work burnout than other countries surveyed. The trend index report, published in September 22, showed that 62% of Australian workers reported being burned out at work, compared to the global average of 48% of employees.
Moreover, the report revealed that 66% of Australian managers suffer burnout compared to 53% of global managers.
To address burnout, businesses must make wellbeing a priority. When this becomes normalised and ingrained in the culture, then employees model behaviour and encourage one another to adopt healthier approaches. Part of doing this is organisations recognising that wellbeing is directly linked to performance. When people feel and think their best, they perform their best too. [Flare: How to protect your teams from burnout]
Stress and burnout is a major issue for businesses. Because not only does this often translate into employees problems like high presenteeism and absenteeism plus low productivity- there is also the fact that people who are feeling stressed are more likely to leave their organisation within the next 12 months.
Now what do all these alarming stats tell us?
When coupled with the earlier info highlighting the benefits of healthy workers – it should be pretty darn clear by now that employee wellbeing is crucial when it comes to creating high-performance culture – and, in turn, business success.
A caution – and a plea
I was speaking to my good mate recently, who just so happens to be an HR Executive in the Professional Services Industry.
*Chaz was sharing some of the pain points his organisation currently faces.
And yes, right up there was the economic challenges – and his concern that the workplace wellbeing initiatives introduced during the pandemic, are going to be amongst the first ‘discretionary items’ cut from the budget.
I don’t work for your company, and of course I don’t know the state of your finances.
What I do know is that the current challenges are not forever.
What I also know are all the facts and figures that support why you need to prioritise workplace wellbeing (see above) – and what happens if you don’t (see above).
In short: if you want to have a high performance culture, particularly when times are tough, then you absolutely MUST prioritise the wellbeing of your employees.
They will remember how you treat them during the good times – but especially during the challenging times.
I am therefore politely asking (aka begging) you NOT to cut your wellbeing program in the new financial year. Modify / reduce if you absolutely must. But please, for your own sake as well as that of your employees, do not significantly reduce or slash it entirely.
Perhaps a timely reminder of my favourite quote by Sir Richard Branson will help…
Clients do not come first. Employees come first. If you take care of your employees, they will take care of your clients.
Now that you understand the importance of prioritising workplace wellbeing, I expect you are keen to learn how?
Excellent news! Because Part B of this blog, ‘W is for Workplace Wellbeing’ (coming soon) will answer this very question for you.
But if you can’t wait, pick up the phone, you’re not alone, wellness deeds, done (not) dirt cheap… aka book a time to chat here.