The Power of Employee Well-being: Why It Matters More Than Ever

What is Employee Wellness, and Why is it So Important?

Gallup research indicates that employee well-being has five pillars—career, social, financial, physical, and community. Purpose Driven Well-being is discussed as a pillar too. These pillars of well-being allow people to flourish.

From money worries to feeling disconnected to burnout, employee wellness is an essential element employer must consider to stay ahead of the curve. Some pay lip service, while others genuinely strive to improve employee well-being.

As mentioned, the pandemic has brought the concept of employee wellness and well-being into sharp focus. A recent Gartner survey of over 50 HR professionals at leading US companies revealed that, since the advent of COVID-19, there had been:

● An 85% increase in support for mental health benefits

● A 50% increase in support for physical well-being

● A 38% increase in support for financial well-being

What is Employee Wellness, and Why is it So Important?

Gallup research indicates that employee well-being has five pillars—career, social, financial, physical, and community. Purpose Driven Well-being is discussed as a pillar too. These pillars of well-being allow people to flourish.

From money worries to feeling disconnected to burnout, employee wellness is an essential element employer must consider to stay ahead of the curve. Some pay lip service, while others genuinely strive to improve employee well-being.

As mentioned, the pandemic has brought the concept of employee wellness and well-being into sharp focus, according to a recent Gallup poll.

Indeed, employee well-being issues such as burnout are experienced individually. However, when a significant proportion of employees struggle with their wellness, it affects company health and the bottom line. Top talent leaves, recruitment costs soar, engagement drops, productivity plummets, and results decline.

Thus, the onus is on companies to take meaningful action to create a workplace culture that facilitates and supports employee well-being – before it's too late.

The question remains: How will organizations and savvy leaders evolve employee well-being practices in 2023 and beyond?

Let's examine the most critical components of successful employee well-being initiatives and assess how they can be implemented or updated in your workplace.

Powerful Strategies for Improving Employee Well-being in Your Workplace

Ignite the Leader Within and Bring Out the Best in Others

Building strong communities in the workplace and having solid relationships with one's boss and colleagues are part of the social well-being pillar and predictors of long-term happiness. Employees want leaders who lead with trustworthiness, transparency, empathy, and authenticity. The cornerstone of authenticity is self-awareness which means being aware of your unique values, purpose, strengths, blind spots, and the impact your behaviors have on others. When leaders consistently work on themselves and their leadership effectiveness to be exemplary role models, they send the message that they care about their development and inspire others to be their best.

Knowing and developing your people is an element of social well-being. The relationship you have with your direct reports is critically essential. Take the time to get to know your people: their talents, strengths, motivators, career aspirations, and communication styles. Leader support matters. People want a leader whose words and actions align, understands the company culture, and helps employees navigate complexities and succeed.

A leader needs to know how to genuinely connect, coach, energize, and get the best out of the multigenerational workforce, merging the best of each generation's talent, experience, and ideas while understanding the different strengths and needs of Baby Boomers, Gen X, Millennials, and Gen Z. You need a team of individuals who bring their unique strengths, skills, and perspectives to the challenges of today. To recruit and retain various talented individuals, leaders need to take serious steps to learn what different generations value and how to lead people different from you.

As a business leader, showing people you care is essential, which takes courage. Empower and engage employees in their work so they find work meaningful while simultaneously achieving outstanding results. As the old adage goes, people don't quit jobs; they quit their bosses. So, it's imperative to address ways to build better leaders and create a culture where people feel they belong, can rise to their potential, and are understood and valued for who they are — then people flourish, and so do the people around them.

Communicate Purpose with Passion

Purpose is one vital key to unlocking human potential. Purpose inspires employees to see they are contributing to something bigger than themselves. It shows people how they fit into the big picture and why they should care. When a leader is committed to the organizational purpose and values and takes a deliberate approach to bring these words to life with action in everything they say and do, from interacting with each other to onboarding to working with clients and engaging in the business, there is a tremendous benefit to employees and the company. Employees who work for more than a paycheck and know their efforts have meaning and a positive impact far beyond the company feel engaged, valued, and inspired. With newfound inspiration, they find creative solutions to problems, persevere when overcoming obstacles, and drive better results.

Turnover and morale issues often stem from a need for more purpose and clarity about how their work makes a difference. Today, employees know they will spend almost a third of their life at work. So, their efforts must have a clear, concise purpose closely aligned with their values and interests, especially with Millennials and Gen Z. When employees feel their work needs more meaning, staying engaged and motivated is difficult.

So, it's wise to create a shared purpose that gives employees a sense of meaning and fulfillment critical to their overall well-being. A purpose-driven culture foments more incredible camaraderie, productivity, and loyalty. So be clear about your company's purpose, and ensure it's communicated to your employees passionately and aligned with action.

Offer Modern Employee Benefits Packages

Many organizations invest the most in salary and a job. While salaries and jobs are crucial in attracting and retaining high-performing employees, the associated benefits are just as significant. Let's start with the most apparent element of employee wellness: great employee benefits packages.

In fact, in MetLife's most recent Employee Benefit Trends Study (EBTS), it was discovered that employees with comprehensive benefits packages were:

● 74% more likely to be satisfied with the job they have now

● 74% more likely to be resilient

● 59% more likely to feel engaged

● 53% more likely to be productive

● 51% more likely to say they intend to be at their organization in 12 months.

And it's not just healthcare coverage that's important. Employees across the generational spectrum value 401(k) contribution-matching, health and wellness benefits, paid vacation and sick time, childcare support, parental leave, work-from-home and flex time, volunteer time-off, and newer technologies.

Employees will likely encounter well-being challenges such as stress, low burnout, and low engagement if you're not offering a comprehensive benefits package with a few modern-day additions. Therefore, creating a benefits strategy tailored to your employees' needs is a top priority, and when doing so, many employees show higher job satisfaction, better job performance, and more loyalty.

Provide Clear Career Advancement Paths

Do your employees know where they will be one, two, and five years from now at your company should they continue to be productive and successful?

If not, why?

You can only expect talented, engaged employees in it for the long haul who will want a clearly-defined career progression path. Employees, especially Millennials, will be more likely to stay with incentives, increased responsibility, opportunities to learn new skills, and the prospect of meaningful career growth.

Provide training and development opportunities to help employees improve skills and gain new knowledge. Whether it's online learning resources that help push an employee toward a professional certification, in-house training to gain exposure to new areas of your organization, executive and leadership coaches, growth opportunities in their current role, or career advice from your leadership team, make sure your employees have access to the resources they need to succeed to keep them engaged and rising to their potential. The best leaders will lead by example and provide the necessary coaching, feedback, and tools to grow their careers and succeed.

Implement Tailored Rewards and Recognition Programs

One of the most effective strategies for engendering the right workplace culture is celebrating your employees' accomplishments and achievements.

According to the Society for Human Resource Management (SHRM), an employee who has been recognized is 63% more likely to stay at their current job within the next three to six months, demonstrating the effectiveness of recognition programs as a talent retention tool.

Start by finding out what's important to them. Not everyone is motivated by the same things. It's essential to tailor your rewards and recognition to your people individually to maximize their impact and vary them across the organization.

For instance, traditional workplace rewards like a gold watch or corner office may still appeal to Baby Boomers, but rewards like these will be less effective for Millennials who want to be praised for a past contribution and see a new opportunity as a reward. Millennials may want to use their professional skills and time to benefit a cause, so volunteer time off is appealing.

There are so many ways to celebrate successes and reward your teams. Regardless, it's essential to create a meaningful and motivating system for your employees.

Employee Wellness is the Key to Unlocking the Potential Contained within Your Teams

Companies that take employee well-being seriously will see a significant increase in employee engagement and a reduction in employee turnover. With the COVID-19 pandemic refocusing people's minds on what's truly important, businesses must take the time to understand and appreciate their employees.

Implementing employee wellness initiatives like those mentioned above can create a supportive and empowering workplace culture that delivers an engaged and productive workforce.

The Post-Coronavirus workplace has created a new normal. So don't wait – re-evaluate and evolve wellness programs so employees can thrive in the new normal.

Filed Under: Leadership | HR | Employee Wellness | Organizational Effectiveness | People Manager | Employee Retention