An increasing number of employers are starting to take steps to support staff health and wellbeing in the workplace. While this is important from a people-centric perspective, statistics show it can also help a business and impact organizational performance.
The relationship between employee overall well-being and business performance is well-documented. There have been various studies over the years connecting good employee health to being beneficial for business performance and vice versa.
Regarding employee health, effective leadership is important for implementing strategies to support them and increase their wellbeing. An effective leader would be someone with experience in the field and a professional qualification, like an MBA.
What is employee wellbeing?
Employee wellbeing refers to the overall health of an employee. This includes their mental, physical, emotional, and economic health. It can be influenced by a variety of factors, from the workplace environment to the resources they have access to and policies.
On average, Australians actually spend about one-third of their time working. So, a full-time worker could be spending up to 10 hours a day at work. So, it’s important their workplace is healthy and safe.
How can a workplace affect well-being?
A workplace environment can have a massive impact on an employee’s wellbeing. Various factors can contribute positively or negatively to an individual’s health. These could be the environment itself, the nature of the work, workplace culture, and other employees.
For instance, bullying or sexual harassment in the workplace from another employee can have a profound negative impact. It could cause trauma, lead to intense stress, and result in poor business performance.
Workplace culture can also impact employee wellbeing. It is a term that refers to the general ‘vibe’ of a workplace. Forbes defines it as: “The shared values, belief systems, attitudes, and the set of assumptions that people in a workplace share.”
The role itself can also affect wellbeing, especially in demanding jobs like a paramedic or a nurse in the emergency department. They are inherently intense jobs and expose the employee to high-stress situations—which is why employers need to ensure wellbeing-related resources are accessible and foster positive work environments.
The link between wellbeing and performance
The link between wellbeing and performance has been widely studied. For example, there is a popular paper published in 2018, titled ‘Doing well by making well: The impact of corporate wellness programs on employee productivity’.
As the title suggests, the paper investigated corporate wellness programs and how they impacted worker productivity. The researchers did this by using a panel of objective health and productivity data from over 100 workers in five laundry plants.
The findings revealed productivity improvements among the employees who participated in the corporate wellness programs and post-program health changes. When the employees’ health increased, their productivity increased by about 10%.
The study suggests that businesses looking to increase productivity and employee motivation can do so by implementing socially responsible health policies and wellbeing programs. It would also be mutually beneficial for both parties.
The researchers do address the fact the study has a limited sample size, but they argue the results are consistent with other research on wellbeing and productivity. For example, there is a 2022 study on how poor mental health impacts workplace productivity.
Shining a light on how critical workplace wellbeing is for business operations and employees is more important than ever. In Australia alone, professionals estimate that poor mental health at work will cost the economy billions.
Mental health and productivity
According to recent productivity research, Australian organizations are beginning to take employee mental health as seriously as their physical health. This is a much-needed change that will benefit businesses and individuals.
PriceWaterhouseCoopers (PWC) has found that approximately 12 million productive work days are lost annually in Australia due to mental illness-related absences or low motivation. Conditions like depression or anxiety can impact a person’s ability to work.
Mental health conditions impact how a person thinks and behaves. In a workplace environment, a mental health condition can influence a person’s motivation, break concentration, lead to errors, and more.
Workplace wellbeing outcomes
When a workplace environment fosters positive mental health, it can do more than improve organizational performance. Research shows positive work culture, access to support infrastructure, and policies can lead to:
- Higher staff satisfaction, which also leads to reduced staff turnover and increased retention. A good work environment helps attract and keep talent.
- Reduce costs associated with poor mental health, like absenteeism and lost productivity.
- A positive and supportive environment also improves morale and increases employee engagement.
Wellbeing, performance, and the pandemic
Over the past decade, the number of employers increasing health and wellbeing support in the workplace has been on the rise. According to data, many of these employers have prioritized this more since the COVID-19 pandemic.
From the long lockdowns to social isolation and increased workloads, the virus itself and the circumstances caused by the pandemic led to a worldwide mental health crisis—especially in the workplace.
Industries, particularly health care, were seeing all-time high numbers for burnout and worsened employee wellbeing. This has severely led to workforce shortages, like in nursing.
This mental health crisis outlines how important employee well-being is, not only for organizational performance but also for a functional workplace. There is also a silver lining—it is drawing to light how employers need to improve in supporting their staff’s health.
How to promote employee wellbeing
There are various ways management can promote employee wellbeing. Whether you’re a team leader or business owner, we’ve outlined below a few ways to promote workplace wellbeing and boost productivity.
- Speak with your team about maintaining a good work-life balance. Encourage them to work reasonable hours and allow for flexible schedules.
- Where possible, offer wellness programs and gym memberships and encourage taking breaks. Physical health is closely linked to mental health and overall wellbeing.
- Provide mental health resources to staff and participate in awareness events like World Mental Health Day. Good examples of resources include counseling services and stress management classes.
- Organize team-building activities and social events to foster a positive work environment and social connections. For example, this could be a team hike or a group escape room.
