Wellness has become a hot topic, and many people are evaluating companies based on how well they support all kinds of well-being—from physical and cognitive to emotional, including mental health.
Organizations are racing to keep up with the trend so they can provide positive work experiences and attract and retain talent. But global data demonstrates they may not be doing enough and that well-being strategies are critical to their competitive advantage, costs, performance and productivity.
The case is compelling, and companies have a critical window to respond in order to see positive effects on both people and business.
Office workers practice yoga. Prioritizing employee wellness can help a business in a wide range of ways. iStock / Getty Images
The Well-Being Challenge
Wellness is frequently defined as physical health. Traditional approaches start with simple health evaluations and also encourage exercise, smoking cessation and improved eating habits.
But truly effective approaches to well-being include a broad variety of approaches, including everything from mental health and financial fitness to support for family systems (think child care or pet care), benefits, insurance, leadership practices and affinity groups.
Unfortunately, wellness strategies are especially necessary, as a large number of people are struggling. Between 44 percent and 38 percent of people report they are overworked or burned out, according to a poll of 5,000 people conducted by Muse. They lack satisfaction or joy, and they feel unappreciated. For 47 percent of respondents, stress is the biggest contributor to their negative experiences.
In addition, 63 percent of people in a poll by Monster said mental health is poor (35 percent) or fair (28 percent). And 7 percent of respondents reported that their company doesn’t do enough to demonstrate a commitment to wellness.
Employers likely need to do more. It’s a big opportunity—for people and business.
Why Leaders Should Invest in Employee Well-Being
Fortunately, there is strong support for employee well-being. A global poll by Gympass found that 90 percent of U.S. respondents said their C-suite executives value employee wellness, viewing it as important to employee satisfaction (92 percent), retention (90 percent) and acquisition (88 percent).
Employees also believe well-being is critical, with 83 percent saying it’s just as important as their salary. But alignment is key. Only 29 percent of employees said their well-being and lifestyle benefits aligned with what they need and want, according to data from Alegeus.
So how do companies justify the investment in well-being and make the case for sustained commitment? The data is clear.
To Stay Competitive
90% of HR leaders who measure the impact of wellness initiatives see positive ROI from the programs and 85% of C-suite executives consider it a competitive advantage, according to the Gympass data.
But companies will need to double down in order to stay ahead of others who are also offering wellness programs. According to a study published in the American Journal of Health Promotion, between 60% and 92% of employers offer health promotion programs.
And the larger the employer, the more likely they were to offer wellness solutions. Most programs in the study focused on physical well-being with almost 30% emphasizing fitness, 19% offering tobacco reduction programs and 17% offering support for weight management programs.
One of the primary reasons to offer well-being programs is certainly to differentiate as an employer brand and enhance the overall employee value equation.
To Help People Work Better
Wellness programs are also correlated with greater productivity. A fascinating study published in Management Science found when companies took steps to support employee health and well-being, they realized a 5% increase in productivity—equal to one day per month of additional output.
The study found that the wellness programs contributed to productivity by enhancing employee satisfaction and gratitude which in turn affected motivation. The strategies also made a difference in productivity by increasing people’s capability—driven by better physical and mental wellness.
The Gympass study also provides evidence that well-being contributes to employee satisfaction. In fact, globally, 88% of HR leaders said a wellness program is very or extremely important to employee satisfaction and 98% of HR leaders saw an improvement in employee satisfaction after rolling out their wellness programs.
People have an instinct to matter and make a contribution to their communities, and work is a great place to feel a sense of purpose and meaning. Humans also tend to behave based on reciprocity—you do something for me, and I do something for you.
As a result, part of the effectiveness of well-being programs is showing that companies care. In turn, employees put more effort into their performance and have a greater sense of esteem.
To Attract and Retain the Best Talent
One of the most compelling links between well-being programs and a positive return on investment is in the data related to attraction and retention. This is one of the most competitive labor markets ever—with companies struggling to find, hire and retain great people.
Sixty-two percent of leaders say they are challenged with hiring and retaining employees, according to data from Coast. And the demand will only increase. Forty-eight percent of businesses are expecting to enlarge their workforces, according to Vistage.
Based on the Gympass poll, 73 percent of employees would consider joining only companies that emphasize employee well-being. And 85 percent are more likely to stay in their role when their employer is focused on wellness.
Globally, HR leaders agree, with 79 percent saying wellness programs are important to retention. In addition, 78 percent say the approach is critical to talent acquisition.
Your well-being strategies are important to implement, but they are also important to communicate as part of the process to attract, recruit and keep the best and the brightest people.
To Reduce Costs
Well-being programs increase everything from productivity to satisfaction and attraction. But wellness-based approaches can also help reduce things, such as costs and sick days.
In fact, 85 percent of U.S. respondents in the Gympass poll reported they have seen a reduction in sick days—by 25 percent. Among U.S. respondents, 75 percent saw a drop in health care costs. And 83 percent of C-suite leaders in the U.S. believe wellness programs are an effective cost-saving measure.
Well-being investments are wise in terms of their payoff for people, but they are also smart in terms of the advantages for the business through the reduction of costs.
How to Take Action on Employee Wellness
When you’re implementing a well-being program, you can achieve success in multiple ways.
First, you can start small. There are few wrong answers in how you take action to increase well-being. If you’re just beginning, you may implement one or two solutions and then build over time.
Perhaps you begin with programs for physical well-being and add new programs over time based on employee feedback. You can also ensure you’re effectively communicating people’s options for well-being programs, from the office walking club to the emotional support group for new parents.
Second, you can pursue a holistic approach. While you might start with physical well-being, you’ll also want to move to a broader view of well-being. The best programs offer a variety of options for people that go beyond the physical to the cognitive and the emotional. For example, you could include emotional support such as mental health counseling.
Third, track and measure results. The emphasis on well-being is likely not a blip but a long-term trend. As a result, you’ll want data about which investments matter most to your employees and what provides the greatest returns to your business.
The opportunities for positive impacts on people are tremendous—and you can also have significant effects on the organization. The key will be to take action and move forward with intention.
About the Author
Tracy Brower is a Ph.D. sociologist studying the future of work, work-life fulfillment and happiness. She is the author of The Secrets to Happiness at Work and Bring Work to Life. She is the vice president of workplace insights for Steelcase and on the United Way’s board, as well as an executive adviser to several organizations. Tracy’s work has been translated into 19 languages. You can find her at tracybrower.com, LinkedIn or any of the other usual social channels.
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