“Health is the state of mind, wellness is a state of being”
- Caroline Myss
People contribute creativity and invention, yet financial records rarely take these intangible contributions into account. Human capital, in contrast to structural capital, is never truly the company's highly valued virtue. A company's failure to keep employees can lead to their departure at any moment. Every facet of an organization's operations, from technology and product creation to distribution channels and service delivery, is driven by its human capital. Professionals in human resources are aware that people, or human capital, are the foundation of every successful business, particularly during difficult economic times.
As human capital is so important to a company's capacity to compete in the global market, HR experts are constantly looking for innovative ways to unlock this potential. Enhancing employee well-being at the workplace is one method to provide your company with a competitive edge. According to recent research by TINYpulse, there are connections between human capital value, work behavior, and health where burnout was considered to be a top concern among employees. Simply put, an employee's health status has a direct impact on their work behavior, attendance, and performance while on the job.
Imagine a ladder with ten levels, the lowest of which are numbered zero. The rungs at the top and bottom of the ladder stand for the finest and worst conceivable lives, respectively.
To effectively meet the new need of managing each person, businesses need to understand how their employees respond to life-scale questions in the best possible way.
Understanding employee well-being here is important. The goal of employee well-being initiatives is to cultivate employee engagement among human capital. When discussing healthy and well-functioning people or employees, it is not just about physical well-being but also other aspects of wellness that cannot be neglected.
According to the Future Workplace 2021 HR Sentiment study, employee well-being and mental health were ranked as a key priority by 68 percent of senior talent management leaders (of whom 40 percent were CHROs). It makes sense that this is a top concern for HR leaders given that the corporate well-being industry in the United States is currently valued at USD 20.4 billion and is expected to reach USD 87.4 billion by 2026. Let us now get to brass tacks, discuss the importance, key elements, and key players in maintaining employee well-being.
“Companies are being more mindful of how employee experience and flexibility can be successfully integrated into their policies and culture”, said Michele Floriani, CMO at Sequoia Consulting Group.
With the recent COVID-19 outbreak, many organizations became aware of the link between employee welfare and performance, and ultimately, business outcomes. Employers had to figure out how to meet the growing demands for empathy toward their employees since employees were concerned and worried.
Psychologists have expressly warned that confinement may lead to an increase in illnesses like depression or even PTSD. As a result, a lot of firms began meticulously making arrangements for their employees' return to work following the pandemic.
The concept of employee health however was becoming very common even before the outbreak. Look at the reasons why employee well-being is more crucial than ever.
Businesses started to recognize that preventing issues like burnout, stress, and illness that affect employee wellness was more profitable than responding to all of these concerns after they had already occurred.
More particular, the sedentary lifestyle of the human resources raises the risk of developing diabetes, high blood pressure, and other illnesses. Additionally, those who report frequently or always feeling burned out at work are 63 percent more likely to call in sick. This implies that employee health and absenteeism's cost to companies is directly related.
Companies have started developing wellness programs due to their many advantages. These initiatives can range in size and focus, but businesses have found them to be cost-effective.
For instance, Johnson & Johnson calculated that over the past ten years, its wellness initiatives have saved the business USD 250 million in healthcare expenses. For every dollar invested in employee well-being, the ROI was USD 2.71.
Data indicates that employees with obesity use three to six sick days more frequently than those with a normal weight each year, and smokers are twice as likely to miss work. Employees who manage stress better, on the other hand, are less susceptible to burnout. In general, when employee welfare is maximized, employees are more concentrated at work, and productivity rises.
We learned throughout the COVID-19 crisis how crucial it is to maintain employee morale. You may greatly raise employee morale by implementing employee well-being programs like fitness competitions across departments or teams or mental health workshops.
To draw and keep employees, 78 percent of firms offer wellness initiatives. High-caliber candidates have many options when choosing their future company because the competition for the top talent on the market is fierce. If you want to draw in the top individuals who will ensure your business' success, offering employee well-being perks that are compatible with your future staff is crucial.
According to studies, employee well-being at the workplace support employee engagement. Employees become more connected, their health improves, and therefore their happiness rises when an employee welfare program is put into place.
All of these elements help to increase employee engagement levels. However, effective feedback procedures and employee appreciation can have an impact on staff engagement. When attempting to improve employee engagement in your organization, be sure to take a comprehensive approach.
The concept that an effective employee well-being plan must go well beyond a collection of individual activities led to the creation of seven interconnected "domains" of employee well-being.
There is no "one-size-fits-all" method for creating a health and well-being strategy; rather, the focus should be on the specific requirements and traits of the business and its staff.
Mental health: Occupational health support, staff assistance programs, conflict resolution training, risk assessments, stress management, teaching line managers how to have uncomfortable talks, and managing a mental illness.
Physical health: Health promotion, effective disability management techniques, health screenings, well-being benefits, health insurance protection, handling affliction, occupational health assistance, and employee assistance programs.
Physical safety: instruction in personal safety, safe working procedures, and safe tools.
Career growth: Mentoring, coaching, performance appraisal and development plans, skill use, and succession planning.
Persistent learning: access to training, performance development plans, mid-career reviews, technical and vocational education, and demanding jobs.
Innovation and creativity: workshops, open and collaborative cultures.
Active employee participation: communication, genuine interaction, and participation in decision-making.
Pragmatic connections: respect and dignity, teamwork, and healthy interactions with managers and fellow employees.
Environment: ergonomically built workspaces and an open, welcoming culture
Team handling: Effective people management practices, line manager training, and sick leave management.
Work demands: workload, working hours, job satisfaction, job quality, job duties, and work-life balance.
Liberty: Control, inventiveness, and independence.
Implementation management: Communication, involvement, and leadership
Pay and reward: Non-financial acknowledgment, fair and open remuneration procedures.
Leadership: people-centered leadership, transparent mission and objectives, a plan for personnel health and happiness, good corporate governance, and trust-building.
Conscience: nobility, community involvement, corporate social responsibility, and volunteering.
Diversity and inclusion (D&I) - Embracing cultural participation, valuing individual differences, and manager and staff training.
Healthy eating: salutary food choices in the canteen and recipe groups.
Exercise - Walking groups, charity walks, Yoga.
Fair reward policies: Inflexible benefit plans and pay rates above the legal National Minimum/Living Wage.
Financial aid for employees: Employee assistance programs that provide debt counseling, referrals to peripheral sources of free advice (such as Citizens Advice), and access to independent financial counselors.
Retirement plans: Pre-retirement classes for those who are close to retiring, phased retirement, such as a three- or four-day workweek.
A company's commitment to employee well-being is not limited to one or two groups. Employee well-being is a collective onus. Individual employee groups have certain obligations when an organization's approach to employee well-being is adopted.
People professionals must support employee well-being as a top priority and incorporate its principles into routine business operations. They must spell out the advantages of a healthy workplace to line managers, who are often in charge of putting people management and well-being policies into practice. Collaboration with all departments of the company and providing helpful advice are paramount for making sure rules and procedures are followed consistently and sympathetically.
Implementation of employee well-being may face significant challenges due to a lack of support from upper management for this proposal. Senior managers must serve as role models for line managers as they will be more likely to participate in health and wellness programs if they see their peers taking part in them. Senior managers hold the power and sway to make sure that wellness is a strategic priority integrated into the daily operations and culture of the company.
Taking part in well-being initiatives and caring for one's health and well-being outside the workplace are both equally important for employees to benefit from them. When employers let their employees know how they can take advantage of the resources and perks at their disposal, they can promote involvement. The company should solicit employee input on how to ameliorate its current offering to improve it and develop new initiatives accordingly.
With employee well-being at work program, employers are manifesting their employees that they respect them, trust them, and want to help them succeed. An organization with high employee morale caters employees to be creative, solve problems, feel shielded and appreciated, develop self-esteem, and achieve their own goals. Having control over their health and lives makes employees contended.
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