The Healthy Organization: Next Step In Employee Wellbeing
Oct 26, 2021
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Explore the evolution of employee well-being and how it ties to modern wellness initiatives. Learn about the challenges organizations face in creating effective benefits and the importance of a supportive work environment. Delve into the connection between employee wellness and organizational health, revealing how well-being efforts can lead to improved financial performance. Discover why integrating these initiatives into core operations is crucial in today’s competitive landscape.
Companies are evolving their approach to employee well-being by moving beyond basic benefits to develop a truly healthy organization.
Organizations investing in higher levels of well-being see improved employee retention, reduced absenteeism, and enhanced financial performance.
Deep dives
Evolution of Employee Well-Being Programs
The concept of employee well-being has evolved significantly since its origins in the 1700s and 1800s, when companies sought to enhance safety and health through housing and employee benefits. Notable examples, such as the Cadbury factory, laid the groundwork for modern well-being initiatives. Today, organizations implement a wide range of programs, including health centers, mental health support, and digital wellness tools. Despite the plethora of options, many companies struggle to measure the return on investment of these programs, leaving them overwhelmed by the complexities of the well-being market.
Four Levels of Investment in Well-Being
The research identifies four distinct levels of investment in employee well-being, starting with employee safety, crucial in high-risk environments such as manufacturing. The second level expands to employee well-being, addressing factors like financial health, sleep quality, and mental well-being, yet companies often report low utilization of these benefits due to employee workloads. The third level emphasizes creating a healthy workplace environment, wherein management plays a key role by preventing burnout through better job design and goal-setting. Finally, the fourth level focuses on fostering a healthy organization, where employees feel valued and engaged, ultimately driving better business outcomes.
Impact of Well-Being on Organizational Success
Research indicates that companies achieving higher levels of well-being, specifically levels three and four, see significantly improved outcomes, such as reduced absenteeism and enhanced attractiveness to top talent. Companies at these levels are not only better at retaining employees but also experience higher financial performance and innovation. Transitioning from level three to level four results in even more substantial benefits, revealing that focusing on cultural and growth issues is critical for sustained success. In light of the evolving economic landscape post-pandemic, prioritizing these aspects of employee well-being is essential for attracting and retaining a committed workforce.
What’s the next step in Employee Wellbeing? Well as our new research points out, companies are moving well beyond benefits to a new world of The Healthy Organization. In this podcast I describe the...
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