Why wellbeing programs are essential for sustainable organisational success.
Are you focusing on your employee’s wellbeing?
Do you take the time to understand how they’re really doing?
The importance of employee wellbeing has never been more critical. Many organisations view wellbeing programs as a mere band-aid fix — a temporary solution to deeper issues. However, when functional, embedded wellbeing programs are implemented correctly, they are a sustainable strategy that drives long-term benefits for both team members and organisations.
Workplace wellbeing is a challenge that is here to stay. In light of recent pressures, cost of living increases, interest rates, housing affordability and more, the workplace has become an environment where team members are seeking more than a weekly paycheck. This has been a growing trend as we see new generations enter the workforce and want more from their workplaces.
Here are the five trends you need to know.
Understanding the True Cost of Employee Turnover
One of the most significant organisational impacts of poor wellbeing in the workplace is the cost of employee turnover. “Most cite the cost as $4,000 an employee, which is simply an estimate of the marginal administrative costs of hiring a new person. It ignores things like training expenses, new hires’ lower initial performance, and the time coworkers have to spend interviewing candidates.1”
If leaders were aware that the true cost of turnover often amounts to multiple times an employee’s annual salary, they would be more proactive in addressing the underlying issues.
“If leaders realised that the true cost of turnover is often a multiple of an employee’s annual salary, knew what the value of the firm’s best employees was relative to that of average employees, and understood that 29% of people who have just been promoted quit (perhaps because 39% of employers routinely fail to give promoted employees more pay), they would immediately demand changes.2” Understanding the immense value of retaining top talent compared to average team members should drive leaders to prioritise wellbeing programs that foster a supportive and engaging work environment.
As the demand on leaders continues to rise, it’s incredibly important to retain your top talent by understanding and addressing their needs as an organisation, complying with legislation and duties.
The link between workplace culture and wellbeing is undeniable. Read more.
Why Wellbeing at Work is Vital Now
For Australian businesses, the urgency to focus on workplace wellbeing is underscored by the new psychosocial hazard legislation. This legislation mandates employers to identify and mitigate risks that could impact workers’ mental wellbeing. Neglecting employee wellbeing is not only a legal risk but also a threat to the overall health of the organisation.
Wellbeing programs that address mental, physical, and emotional health are crucial in creating a resilient workforce. Resilience is the foundation of our wellbeing program, understanding the impact of a person’s mindset is significant when it comes to overcoming challenges and pushing through tough times. These programs are more than just perks; they are strategic initiatives that can reduce absenteeism, improve productivity, and enhance employee engagement. When employees feel valued and supported, they are more likely to stay with an organisation, reducing turnover and its costs.
The Sustainable Solution
Effective wellbeing programs are not quick fixes; they are comprehensive strategies that involve ongoing commitment and measurement. Sustainable wellbeing programs incorporate various elements such as:
- Leader-Led Initiatives: Leaders must model and promote wellbeing, setting the tone for a culture of care and support. A core part of our wellbeing program addresses these fundamentals for all levels of leaderships, taking a top-down approach.
- Individual-Led Programs: Empower team members to take charge of their wellbeing through personalised resources and support systems, giving them the tools to own their development.
- Continuous Improvement: Through Skodel, we regularly measure the impact of wellbeing initiatives and adjust strategies based on data and feedback. This ensures a sustainable and targeted solution that will continue to serve the organisation and the people involved.
- Holistic Approach: Address all aspects of wellbeing, including mental health, physical fitness, work-life balance, and professional growth for a well-rounded view of wellbeing and how each person can bring their whole selves to work.
These measures ensure that wellbeing programs are not just reactive but proactive, embedding a culture of care and support throughout an organisation.
We truly believe that culture and wellbeing go hand in hand. They are two sides of one strategy that creates a culture of wellbeing where people can truly thrive and reach their potential.
The Impact of Wellbeing Programs
Data supports the significant positive impact of wellbeing programs. Companies that invest in comprehensive wellbeing initiatives often see higher employee satisfaction, reduced turnover rates, and improved financial performance. According to Gallup3,
“We know that engaged employees produce far better outcomes, but Gallup recently discovered that engaged workers who are not thriving in their lives are much more vulnerable and add risk to your organization.”
“Comparing employees who are engaged but not thriving with those who are engaged and thriving, those who aren’t thriving report the following risks:
- 61% higher likelihood of burnout often or always
- 48% higher likelihood of daily stress
- 66% higher likelihood of daily worry”
With a wellbeing program, common negative experiences like daily stress and burnout can be identified, monitored and addressed earlier than ever. When organisations intentionally address wellbeing and engagement, it’s a mutually beneficial decision to overcome these challenges for both the team members and organisation. Wellbeing programs also enhance an organisation’s reputation, making it an attractive place for top talent. In a competitive job market, this can be a decisive advantage.
Investing in sustainable wellbeing programs is not just beneficial — it’s imperative. For tailored solutions that meet your organisation where it’s at and support meaningful change, reach out to our wellbeing expert, Eliza.
Let us help you implement sustainable strategies that go beyond band-aid fixes, ensuring your workforce thrives in a supportive and engaging environment.
Contact Eliza today to start transforming your workplace wellbeing.
Sources
1 https://hbr.org/2024/05/hrs-new-role
