The pandemic has taught us starkly that employee health is not just covered by annual health checks covered by insurance. Mass exodus in 2021 has fueled growing employee discontent and decades of corporate structures that have neglected their most valuable asset: their employees. In 2024, while Narayan Murthy trains for a 70-hour work week, others are looking for ways to manage the usual 40-45 hours. Excessive work hours, the expectation to be “always on,” substandard compensation, and the idea that work takes precedence over all other parts of life are roadblocks to corporate failure and long-term disaster.
Wellness is an inherently subjective concept, judged by the level of comfort, happiness and thriving employees feel. With increasing pressure to stay in business in tough economic times, even the highest level of executives are at risk of poor organizational wellness. Companies are realizing the importance of investing in employee wellness. Data shows that a happy, satisfied workforce is not only good for the employees themselves, but also important for increasing shareholder value and delivering greater profits.
Financial health is a central concern
According to a PwC survey, a significant proportion of employees 57% cited financial stress as their biggest concern.Economic challenges in 2023 include inflation, rising prices, sluggish wage growth, and growing credit card debt, placing increasing financial burdens on employees. Introducing financial wellness benefits is key to addressing immediate money management issues. When employees are overwhelmed by day-to-day financial struggles, they are unable to effectively pursue long-term goals or achieve financial resilience. Especially in uncertain economic times, employees need access to unbiased resources for financial guidance without the pressure of product sales or retirement plan bias. Fortunately, the stigma associated with seeking financial assistance appears to be diminishing. 33% of people feel embarrassed, up from 42% in 2019.To promote financial stability, this change should be embraced by executive leadership.
Pioneers have created and protected long-term value by prioritizing human capital management and providing wellness management and oversight because they understand that financially stable, healthy and motivated employees work much more effectively and efficiently, deliver superior results and make better decisions. Psychosocial risks in the workplace not only reduce employees’ mental health, but also have serious implications on company operations.
The role of the Board in promoting health
Boards have a key role to play in working towards a healthier environment, improved employee retention, and improved job performance and productivity. First, boards must understand the direct link between employee health and performance. Research shows that employees in a health-conscious culture are two times more likely to want to stay with their employer and be fully engaged in their work in the future. Second, they must measure and review health and performance data across multiple dimensions, including supply chain impact, replacement costs, reputation impact, and productivity costs. The more data they have, the more control they have over how they manage their responsibilities. Finally, boards must take time out of their busy schedules to practice “CARE” governance, covering the four most important components of health: compensation and benefits, promotion, retirement, and experience.
Employee health is directly tied to a company’s culture. When employees thrive physically, mentally, financially, and socially, so does the company. Company policies must create the necessary structures for health, whether that be encouraging exercise, allowing access to mental health services, promoting financial awareness, or creating opportunities to collaborate and build relationships. Thus, health and wellness programs benefit not only employees but also employers.
Action steps for boards
Now that we know that a healthy workforce leads to lower healthcare costs, better employee retention, increased productivity, and an overall more sustainable business model, let’s discuss what your board can do to steer your company in this direction. Here are some key steps to ensure improved employee health:
Unanimous executive agreement – This is critical to funding and sponsoring successful wellness programs at the board level across the entire careers of employees. When boards understand the long-term benefits of such programs, they are more likely to invest in not only their employees’ health, but their own health as well.
Build a strong health and wellness team – Efficiency and oversight are key, and creating even a small, dedicated team of wellness-focused HR professionals not only increases accountability, but also provides a safe space for employees to provide constructive feedback.
Define and set measurable goals – As with all things, goal setting is key to improving employee wellness. Small, achievable steps contribute to the overall wellness of your company. A calendar with specific activities, programs and workshops is a great place to start.
The 3 Ps – Prevent, Protect, Promote – Prevention saves lives and, in this case, jobs. To prevent poor mental health, psychosocial risks in the workplace must be effectively managed through organisational interventions such as flextime and structural frameworks. Protecting workers’ mental health through management training, mental health literacy and reducing stigma in the workplace can also go a long way. Finally, promoting a healthy workplace culture, from the workplace floor to the boardroom, is the surest way to sustain a healthy culture.
Improving employee health and happiness doesn’t require big budgets or sweeping changes; it just requires a change in our attitude and priorities. Companies will find that investing even a little in employee well-being through comprehensive health and wellness programs can have big results for both employees and the company.
