The value of ensuring wellbeing at work
The subject of employee wellbeing has become a key talking point in recent years. But what is employee wellbeing? Why should organisations invest in it? Dr Sue Shortland reports on recent research in the field.
Academic research suggests there is no unanimous definition of wellbeing. It is described in different ways across various disciplines. Hence, definitions and the components of wellbeing can vary considerably. Wellbeing is sometimes described as the absence of ill-health symptoms. However, the literature suggests that, although the concepts of health and wellbeing overlap, wellbeing amounts to more than just health alone.
In a potentially more helpful frame, the literature regards wellbeing as a subjective state of satisfaction and contentment with one’s quality of life. Wellbeing can include physical, mental, social, emotional and material forms of happiness. So, for example, the components of workplace wellbeing have been reported as including interpersonal relationships, job design and fulfilment, work-life balance, psychological safety and mental, physical and financial health. From this, it is clear that employee wellbeing must be seen as a holistic concept.
To address employee wellbeing, employers need to consider a wide range of components that potentially comprise a subjective state, namely, employee evaluations of how they feel about their working lives. Clearly, this is not a straightforward task. For organisations to address wellbeing successfully, they must identify relevant factors and demonstrate willingness to create the environment that provides the appropriate mix of wellbeing components to enable employees to thrive. But employees will likely have different views as to what wellbeing is and exactly which aspects of it are important to them.
Perhaps unsurprisingly, given the somewhat hazy nature of exactly what wellbeing is, it is not viewed as a strategic priority for many firms. A recent survey from Aon* suggests that although wellbeing is recognised as an important area for organisations to address, only just over half of multinationals currently regard it as a strategic priority. Instead, more easily identifiable goals such as compliance, competitiveness, cost management, governance and communications lead the field as current organisational strategic priorities.
Why is wellbeing important?
A recent report, ‘The State of Employee Wellbeing in the Workplace: 2024’**, indicates that a focus on employee wellbeing improves organisational performance by raising employee productivity, loyalty and discretionary effort. Wellbeing is also found to reduce absenteeism and labour turnover.
The report finds that there appear to be significant differences in wellbeing experiences across industrial sectors. Technology and biopharmaceutical sectors lead the field in terms of a positive general overall evaluation of employee wellbeing. Retail, education and training and manufacturing and production sectors are notable as ranking lower. This has implications for employee attraction and retention.
Employers should review their strategic priorities and ensure that wellbeing is encompassed in them. Organisational efforts to improve wellbeing should also be communicated effectively to the workforce.
The global mobility context
With respect to global mobility, wellbeing has become a key issue of concern in recent years, particularly post-pandemic. Increasingly, organisations have come to recognise the increased demands and pressures on individuals and their families when working in different cultural and linguistic environments. Lack of understanding of culture and language increases stress for employees and family members, particularly in difficult, dangerous or challenging locations. The stresses associated with undertaking different types of assignments, including unaccompanied mobility, frequent international business travel and the challenges faced by minorities who are relocated abroad, are also recognised.
Research has shown that international assignees’ perceptions of supportive organisational environments can have a positive effect on their psychological wellbeing. In the global context, assignees look for support both from their home country and the receiving host location. Wellbeing is improved when host country organisations visibly provide support. Social aspects associated with wellbeing are particularly important for both employees and family members and aid adjustment.
Support systems that contribute to international assignees’ wellbeing include flexible working and perceived fair reward practices. Organisational support that addresses safety and security also contributes significantly to wellbeing. In terms of international relocation policies, career management practices, mental health support interventions and home and host country mentors have been found to be particularly relevant. Clear policies that address terrorism preparedness and programmes that provide support in hostile environments are also critical, as is access to medical care.
Conditions at work also play an important role in assignees’ wellbeing. For example, good relationships between host country supervisors and international assignees lead to improved wellbeing. Good co-worker and peer relationships also result in positive effects. Meaningful work, role clarity and autonomy, and a good match between job demands and resources are further factors.
Research has demonstrated organisational outcomes of good wellbeing-support practices include improved assignee adjustment, job satisfaction, performance and organisational commitment, as well as knowledge transfer and sharing and overall greater work effectiveness. Assignment success is likely to be correlated to positive assignee and family wellbeing.
Tailoring organisational support
Given the wide range of factors that comprise employee wellbeing – for domestic as well as internationally mobile personnel – it is likely that each individual will place different emphasis on their importance.
So, for example, while some employees may value flexible working and work-life balance most, others may prioritise supportive work relationships such as mentors. For others, financial wellbeing may be of greater significance. Tailoring wellbeing support such that each individual can maximise the benefits from the wellbeing programme is clearly advantageous to raising workforce wellbeing overall. Financial rewards must be transparent and equitable.
Organisational policy and programme design should not only provide an underpinning to ensure general employee wellbeing, but also allow for flexibility so every member of the workforce can achieve their own personal satisfaction and contentment. While flexibility in policy and programme design is to be encouraged, this must be combined with excellent communications, supported by appropriate technology, to ensure perceived equity and fair treatment.
*Aon Global Benefits Trends Survey 2024 available from: https://www.aon.com/en/insights/reports/2024-global-benefits-trends-study#:~:text=Our%20study%2C%20based%20on%20input,are%20employing%20to%20address%20them.
**The State of Employee Wellbeing in the Workplace: 2024. Available from: https://uk.greatplacetowork.co.uk/workplace-wellbeing-report
