How happy are your employees? In such a competitive work landscape, employee wellbeing has never been more important, no matter what industry you’re in.
By prioritising employee wellbeing and creating a positive workplace culture, you can build an organisation where everyone reaps the rewards. From increased productivity to accelerated professional development, the benefits can not only lead to a happier team but a more prosperous business.
In this blog, we’ll explore what employee wellbeing truly means, why it’s essential, and practical strategies that leaders can implement to make a meaningful impact.
What Does Employee Wellbeing Really Mean?
Many people ask, “What is employee wellbeing?” It’s often confused with employee engagement, but while the two are related, they are not the same. Employee engagement refers to how emotionally invested an employee is in their work and the company’s goals. Employee wellbeing, however, takes a holistic approach; it’s about supporting the whole person, not just their role within the company.
Work and personal life are deeply intertwined. A stressful work environment doesn’t just affect employees at the office, it follows them home. Likewise, personal struggles can impact workplace productivity, engagement, and morale. That’s why employee wellbeing goes beyond job satisfaction, aiming to create an environment where people can thrive in all aspects of life.
The Key Elements of Employee Wellbeing
True workplace wellness extends beyond perks like gym memberships or mindfulness apps. It encompasses:
- Mental Health Support: Stress management, burnout prevention, and normalising conversations around mental health in the workplace are critical for overall wellbeing.
- Psychological Safety: Employees need to feel comfortable sharing concerns, asking for help, and providing upward feedback without fear of judgment.
- Employee Physical Health: Encouraging movement, promoting healthy habits, and ensuring a safe work environment can lead to better engagement and lower absenteeism.
- Social Connections & Team Building: A strong sense of ‘belonging’ at work reduces stress and increases employee morale.
- Financial Security: Money worries are a major source of stress. Employee wellbeing initiatives should include fair pay, financial education, and employee benefits that promote stability.
By addressing these areas, companies improve the overall employee experience, boost morale, and create a positive workplace culture where people feel valued and supported.
Are Employers Responsible for the Wellbeing of Employees?
Some employers wonder if employee wellbeing is really their responsibility. The reality is that workplace culture plays a crucial role in shaping employees’ overall wellbeing, engagement, and performance.
According to People Insight, only 65% of employees feel their company does enough to support their employee health and wellbeing. That means over a third of employees feel overlooked in this area. Creating a workplace wellness strategy isn’t just beneficial for employees, it’s a game-changer for business success!
Companies that invest in employee wellbeing initiatives experience:
- Higher employee engagement
- Increased productivity
- Greater motivation for career growth
- Stronger team building and connections
- Reduced absenteeism and burnout
- Improved job satisfaction and employee retention
- Enhanced company reputation
- A more positive workplace culture
While employers may not be responsible for every aspect of an employee’s personal wellbeing, they are responsible for cultivating an environment that supports it. Investing in employee wellbeing is not just the right thing to do, it’s a smart performance management strategy.
Mental Health in the Workplace
One of the biggest aspects of employee wellbeing is mental health. Mental health issues affect one in four people at some point in their lives, according to the CIPD. That means, whether it’s visible or not, mental health challenges exist in every workplace.
Beyond the personal impact, poor mental health can take a serious toll on business performance. Mentalhealth.org estimates that poor employee wellbeing costs UK employers between £42 billion and £45 billion annually due to absenteeism, presenteeism, and staff turnover. The good news? Investing in workplace mental health pays off. Research shows that, on average, for every £1 invested in mental health interventions, businesses see a return of around £5. If you are looking for another reason to enhance your employee wellbeing initiatives, it isn’t just the right thing to do – it also safeguards and strengthens your company’s financial stability.
What can Employers do to Improve Employee Wellbeing?
If you’re ready to take the next steps in better supporting your employees’ wellbeing and building a wellbeing-focused workplace, here are our top 6 initiatives that can be easily implemented within your organisation.
1. Create a Positive Workplace Culture
It may seem very apparent, but one of the most effective ways to support employee wellbeing is by cultivating a positive workplace culture. When employees feel valued, supported, and appreciated, they’re more engaged, motivated, and have a stronger sense of belonging within the company.
In our webinar, Belonging: The Next Frontier in Promoting Thriving Workplaces, Dr. Aleen Bayard highlights the importance of creating an environment where employees feel safe to be vulnerable, seek help, and build trust and connection with one another. This sense of psychological safety is a key pillar of wellbeing; when employees know they can be open about challenges without fear of judgment, they’re far more likely to thrive both personally and professionally.
Whilst ‘company culture’ is a term that receives a lot of attention inside many DEI initiatives, it’s far more than just a buzzword or item on a compliance checklist to cross off; it’s the foundation of your organisation. It influences everything from employee benefits and communication styles to goal setting and workplace relationships. A culture that prioritises wellbeing doesn’t just focus on work output but also on how employees feel while doing their jobs.
2. Provide Flexible Work Life Balance
Forbes highlights that workplace wellness and employee wellbeing are increasingly tied to flexibility; where, when, and how employees work. A healthy work life balance directly impacts employee morale, engagement, and productivity, making it a key driver of employee health and wellbeing. Since the pandemic, companies have embraced more flexible models, offering employees the choice of office-based, fully remote, or hybrid work, giving them greater autonomy over their schedules.
As a new generation enters the workforce, flexibility remains essential for attracting and retaining top talent. People Management explains: “Flexible work environments are a top priority of Gen Zs. This flexibility is not only in the physical workspace but also in how they collaborate to accomplish tasks.”
The takeaway? Motivating employees means adapting to their evolving needs. If Gen Z doesn’t feel their work life balance is a priority, they won’t hesitate to look for an employer that does.
3. Recognise Good Work and Give Praise
When was the last time you praised a team member? Surprisingly, only one in three U.S. workers say they received recognition in the past week, according to Gallup. Yet, recognition is a key driver of employee experience, boosting morale, motivation, and overall job satisfaction. Employees who feel unappreciated are twice as likely to consider leaving within the next year.
Our top tip? Don’t wait for the big wins! Employee recognition shouldn’t be limited to annual or monthly performance reviews, small, frequent moments of appreciation can have a huge impact. Did someone exceed their targets? Give them a shoutout! Did a teammate go the extra mile to help? Thank them! Simple acts of recognition create a positive work environment, strengthen team connections, and improves employee wellbeing, all of which contribute to a thriving, engaged workforce. Recognition should also be tied to SMART goals to ensure clarity in what achievements are being acknowledged.
At emPerform, we make performance management a breeze with innovative software that simplifies ongoing feedback and turns performance reviews into something transparent, structured, and actionable. Recognising and celebrating your employees’ hard work has never been easier!
4. Prioritise Personal Growth
Supporting employee wellbeing isn’t just about health and work life balance, it’s also about personal and professional growth. When employees feel they have opportunities to learn, develop, and progress in their careers, they’re more engaged, motivated, and committed to your company.
Encouraging collaboration and continuous learning within teams not only helps employees develop new skills but also boosts their confidence and sense of achievement. When individuals are given opportunities to grow, take on new challenges, and expand their expertise, they feel more empowered and fulfilled in their careers. A workplace that actively supports personal development cultivates a culture of ambition, resilience, and long-term success, benefiting both employees and the business.
Professional development also ties directly to financial stability. When employees are given the tools and opportunities to advance in their careers, they gain greater financial security, reducing stress and improving overall wellbeing. Plus, aligning personal and professional growth with company OKRs can help ensure that individual development is connected to the overall goals of the organisation.
5. Host Regular Training and Support
The World Health Organisation (WHO) advises that: “protecting and promoting mental health at work is about strengthening capacities to recognise and act on mental health conditions at work, particularly for persons responsible for the supervision of others, such as managers.”
With that in mind, now’s a great time to assess the resources available in your business. Having dedicated mental health first aiders on your team shows employees that you care. Offer them the right training so they can spot signs of poor mental wellbeing and know how to support their colleagues. It’s best to ask employees with strong emotional intelligence to volunteer for this role, rather than assigning it without consent; when people care about mental health, the process will go much more smoothly.
Alternatively, consider hiring a Chief Happiness Officer (CHO). A CHO’s primary responsibility is to “ensure your employees are happy and satisfied in their roles, departments, and workplace.” (Business.com). Bringing someone in to focus on employee wellbeing can lift a huge weight off your shoulders and help create a more positive workplace culture.
6. Make the most of Employee Feedback
Of course, there is no one size fits all answer when it comes to employee wellbeing. The easiest way to understand what your employees specifically need to thrive is by simply asking them. Use ongoing feedback and satisfaction surveys to better understand what your teams value the most, e.g. benefits that will contribute to a better worklife balance or help their improve wellbeing, and then tailor your efforts in line with their wants and needs. As leaders, we sometimes overlook the smaller day-to-day details that can turn a good workplace culture into an exceptional one.
After you’ve surveyed your employees, follow up with upward feedback to assess what worked well and what didn’t, to identify any areas for improvement. Ongoing feedback allows for grow and development in line with employee progress, providing the foundation questions for additional pulse surveys which result in more focused, productive and meaningful answers they better evaluate and target employee needs.
With the changes in how employees work, the rise of burnout, quiet quitting, absenteeism, and shifting employee expectations, it’s time for leaders to rethink employee wellbeing. Prioritising this investment and promoting it as a standard of healthy living within organisations is crucial. By building a positive workplace culture where everyone feels validated, whether it is through team initiatives or integrated services to support wellbeing needs, you will not only have a more motivated and happier team but also see measurable results that add to your own organisation’s financial growth.
Ready to take your performance reviews to the next level? With emPerform in your HR toolkit, you can make performance reviews smoother, more structured, and focused on what really matters; helping your employees and business thrive.
Book a FREE demo today or contact us for any advice on performance management.
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