For an organisation to reach its full potential, it needs people to be working at their full potential.
Unfortunately, modern workers are under pressure. As a result, many are turning up but turning off, leading to lower productivity and problems of engagement and commitment.
At the same time, many organisations need to get more done with fewer staff and resources. Rising costs associated with absenteeism, presenteeism, stress claims and employee turnover are common. These problems cost organisations thousands, if not millions of dollars each year.
Mental wellbeing is the key to addressing many of these issues. Individuals can’t thrive without it. That means organisations can’t either.
Why invest in employee wellbeing
Individual employee wellbeing directly affects organisational wellbeing indicators such as turnover, engagement, productivity, and profitability. For organisations to work at their best, they need their people to work at their best. And people work best when they’re happy; not neutral or stressed.
Here are some key benefits:
• Increased engagement – A Gallup survey on employee engagement, showed only one-third “strongly agree” with the statement “At work, I have the opportunity to do what I do best every day.” Another Gallup poll of over 1000 people, showed that of people who “strongly disagreed” or “disagreed” with the above statement, not a single person was engaged with their job.
• Increased retention – Participation in organisational wellness programs is linked to reduced stress levels, lower absenteeism, higher job satisfaction and increased productivity.
• Cost reduction – The direct cost to Australian employers of stress-related presenteeism and absenteeism is now over $10 billion. (Safe Work Australia, 2012)
• Risk reduction – Work related mental stress workers compensation claims are the most expensive form of claim as they usually involve lengthy periods of absence.
Employee wellbeing has been proven to be associated with higher levels of staff satisfaction, productivity and effectiveness. It improves both individual performance and teamwork, leads to lower turnover and is a key to developing an ‘employer of choice’ reputation.
Some of the evidence
1. A two year study, published in the Canadian Journal of Behavioural Science, showed that psychological wellbeing reliably predicts job performance.
2. A five year study of psychological wellbeing and performance, published in Consulting Psychology Journal: Practice and Research, showed a strong correlation between wellbeing and work performance.
3. A study of 16,000 employees found that 23% of the variance in employee productivity is explained by: psychological wellbeing, perceived commitment of the organisation to the employee, and resources and communications.
4. In nearly 8000 separate business units in 36 companies, employee engagement/ wellbeing correlated with business unit performance.
The more that employers can embed wellness-related practices into normal workplace culture, the better it is for the employees and organisation alike.
If you’d like information about how your organisation could boost wellbeing in your workplace, get in touch for a free no-obligation phone chat about your options.