The importance of employee wellbeing in the workplace has been highlighted significantly during the pandemic. It has transitioned from being a bonus to being a crucial aspect for businesses. Replacing intermittent yoga sessions or nutritious breakfasts, many businesses are now implementing comprehensive wellness programs, specially curated for different employee groups. Although research into this novel trend is still budding, specialists confirm that prioritising employee wellbeing not only facilitates hiring and boosts retention but eventually amplifies profits.
Surprisingly enough, the demand for such programs is skyrocketing – businesses spent an approximated £43.7 billion ($61.2 billion) on wellness initiatives in 2021, a figure expected to escalate to £67.6 billion ($94.6 billion) by 2026. As suggested by a recent study by MetLife, the growth in the wellness programs sector is attributed to demand and supply dynamics: about 78% of Generation X and 79% of baby boomers viewed these programs as essential in 2021, a rise from 56% in both cohorts in 2019.
Accenture’s HR head in Ireland, Aisling Campbell, emphasises that employees are now seeking more from their employers, – a responsible leadership that guarantees their wellbeing. She adds, “To boost workplace morale and allure talent, businesses need to constantly scrutinise and cater to the evolving needs of their employees, covering emotional, physical, and financial wellbeing. For most of us, work is a substantial part of our life, hence a job place that values wellness will generally enhance our overall happiness.”
According to Mary Connaughton, the Director of CIPD, the professional association for HR and people’s development, the notion of wellbeing in the workplace has expanded beyond mere symbolic gestures and is no longer exclusive to large multinationals. She claims it is so integral to operations now that it is perceived as an individual speciality within HR, with many hired for specific ‘wellness’ roles. “Perceptions around wellbeing programs have undeniably transformed. Earlier it was believed those initiatives were merely for show, but now a substantial focus has been placed on the employee’s experience. Endeavours merely designed to appear good will fall short of employee expectations and may instead be counterproductive,” she points out.
Indeed, the concept of employee wellbeing at the workplace has grown to suit the specific needs of employees instead of implementing a generic approach, according to Connaughton. She highlights the rise of policies on menopause and fertility as more commonplace.
Connaughton elaborates that companies are actively engaging and consulting their workforce on what they require for their wellbeing. She suggests that depending on their age group, employees may have different priorities for wellbeing.
For instance, recent hires straight from university may prefer additional leave for travel, whilst staff with children might need a flexible schedule to manage school runs.
In support, Campbell insists that companies must make sure to create fundamental structures that cater to the individuals. He points out that small details truly matter, such as carrying out health checks in workplaces, offering adaptable work policies, and promoting a positive company culture. According to Campbell, these are essential factors for employees to flourish in their work.
Nevertheless, Connaughton reveals that while wellbeing policies in workplaces are considered vital, firms are advancing their wellness programmes to entice and retain manpower. She believes that such investment inevitably has an effect on the company’s profitability.
She explains that many organisations face challenges in retaining staff, thus holding onto them reduces the need for spending additional resources on recruitment, and in turn, impacts the company’s bottom line significantly. Connaughton further adds that she has observed increased mental health support in workplaces due to its contribution to absenteeism, implying that cost reduction resulting from tackling absenteeism also impacts the bottom line.
While research is still ongoing concerning the direct and indirect impact of investing in employee wellbeing, a recent survey by Wellhub – a worldwide wellbeing company, revealed that 99% of HR leaders believe it has boosted employee productivity. Moreover, an Aon survey suggested that companies that enhanced employee wellbeing by 4% observed a 1% increase in profitability and a 1% decrease in employee turnover.
In 2020, Accenture spearheaded a study involving 3,200 high-ranking executives and over 15,600 workers across 10 nations. The research discovered that businesses that tend to the six basic human necessities through work, namely emotional and mental, relational, physical, financial, purposeful, and employable, significantly enhance their employees’ potential. Campbell explains this as the ‘net better off’ model. Employees that feel ‘net better off’, are twice as likely to feel like they belong and able to manage work-life balance. This benefits not only the individual’s potential but that of the business as well. Building meaningful, trusting relationships with employees often leads to an uptick in business performance.
Nonetheless, not all Irish corporations are efficiently addressing employee wellbeing. A study carried out by the University College Cork and Munster Technological University titled ‘The Healthy Workplace Ireland’ reveals that, although 75% of Irish employers claim accountability for employee mental health and wellbeing, 80% do not invest in workplace mental health.
Connaughton warns that businesses falling short in this respect will not experience the advantages. A detailed dialogue concerning the wellness necessities of workers and managers was the focal point of the recent CIPD ‘Wellbeing Conference’ held at Croke Park. “This will become a yearly occasion,” she proclaims, underlining the autonomy of wellbeing.
Sanofi, the pharmaceutical firm incorporating approximately 800 employees and 200 contractors in Waterford, showcases a favourable response and outcome to their wellbeing initiatives. According to Martin O’Leary, who oversees people and culture, a significant effort is being made to foster an inclusive workspace where the diverse workforce feels content, secure and physically and mentally healthy.
For instance, an occupational nurse is stationed on-site, with a physician making regular visits. The company also provides a year-round, 24/7 on-site gym (the annual membership fee is €30), offering 30 hours of weekly classes that employees can register for through an app.
O’Leary asserts that creating a conducive work environment where employees can remain physically fit is crucial. With this in mind, the company encourages exercise either before or after work, provides pathways for walks within the company surroundings, and promotes healthier food choices through their on-site cafeteria.
However, O’Leary emphasises that these incentives are optional for employees who wish to make use of them. Sanofi has taken a comprehensive approach to employee wellness, introducing imaginative plans such as the Cancer at Work initiative. Established earlier this year, this scheme allows any worker adversely impacted by cancer to take a year off, all expenses paid.
Flexibility around work hours is also offered for those caring for family members diagnosed with cancer. In addition, nurses are available to provide counselling and extra support to anyone who may need it. According to O’Leary, the introduction of this scheme has been met with an overwhelmingly positive response, and several workers have already taken advantage of it.
O’Leary believes that promoting a balance between remote and on-site work plays a significant role in boosting employee wellness. He mentions that the company is mindful to provide accommodations, such as flexible hours or job-sharing, for those operating in the manufacturing sector who cannot work remotely.
Such initiatives not only enhance the company’s appeal to potential employees, but they also assist in retaining current personnel. O’Leary adds that whilst a free breakfast may not be a deciding factor for someone considering joining or staying at the company, they’ve seen increased productivity and reduced absenteeism as a result of their investment in employee wellbeing.