How to craft an impactful and cost-effective employee wellness strategy
Over the past three years, there has been a significant shift in societal understanding of mental health in the workplace. Today, most HR managers agree that improvements in employee well-being can greatly impact employee energy levels, engagement, productivity, and overall company culture.
These aren’t just opinions, either. Recent research backs this up, showing that overlooking employee wellness leads to:
- $322 billion in global turnover and lost productivity,
- Lost opportunities that can total up to $20 million for every 10,000 workers, and
- Voluntary turnover related to burnout, making up 15-20% of total payroll.
After looking at these statistics, you may feel the need to heavily invest in employee well-being initiatives. But here’s a critical point to remember: not all wellness strategies are equally effective. In fact, most wellness initiatives have an uptake rate of around 2-8%, raising questions about their return on investment (ROI).
Common HR mistakes when building a corporate wellness initiative
Offering one wellness tool to everyone
There’s no ‘one-size-fits-all’ approach to mental health. While a yoga app might be helpful to some, it’s unrealistic to expect that it will resonate with the diverse needs of the entire workforce.
Ignoring critical issues within the corporate culture
Offering mental health benefits to employees who feel burnt out due to an unmanageable workload, time pressure, or lack of role clarity is the same as putting a band-aid on a bullet wound; it may provide temporary relief but doesn’t address the root of the problem.
Failing to measure the impact it’s making
If HR departments aren’t aware of the success of their strategies, the initiative could be competent at best and harmful at worst. Essentially, it could be a waste of money.
To prevent this from happening, the Mindletic app measures employee wellbeing dimensions and provides analytics showing areas of concern. This approach ensures effective resource use by anticipating and preventing destructive behaviors like bullying and burnout.
Top 6 KPIs that reflect the status of well-being within your organization
To gain further insight into your employees’ well-being, you might want to consider paying closer attention to factors that reflect the status of well-being within your organization. Ask yourself these six questions:
How happy are your employees with their position in your company?
Job satisfaction and happiness are integral to employee retention. Studies highlight a significant link between job dissatisfaction and employee turnover, revealing that unhappy employees, particularly those from Gen Z, are more likely to leave their jobs prematurely.
If you’d like to gain deeper insights into the happiness of your employees, check out this WHO-5 Wellbeing survey which we are now offering absolutely FREE for a limited time only.
How likely is it that employees will stay with your company long-term?
A Harvard Business Review report states that replacing a lost employee can cost up to 1.5-2x their annual salary, taking into account recruitment, training, and lost productivity costs.
Employee satisfaction isn’t just an ‘extra’; it directly influences the bottom line. By cultivating a psychologically safe environment, employees feel at ease expressing their concerns, dissatisfaction, and unmet needs in the workplace. This way, HR managers aren’t left wondering why a formerly motivated employee has suddenly quit just a few months into their role.
Not sure where to begin? Mindletic’s Balance Teams tool is designed to encourage psychological safety by offering structured activities where team members can respond to various prompts, effectively fostering an open exchange of ideas.
How driven and invested are your employees?
When employees feel disengaged or uninvested, their productivity and quality of work often suffer, leading to losses in potential revenue. According to a Gallup report, disengaged employees cost U.S. companies between $450-$550 billion each year in lost productivity.
By providing tools for stress management, resilience training, and personal growth, the Mindletic app can boost employee motivation, encouraging a more ambitious, healthier workforce. It’s not enough to recognize low motivation; Mindletic helps actively address and rectify it.
How satisfied are your employees with your management style?
Productive employees begin with effective management. A Harvard Business Review report found that employees whose managers hold regular meetings with them are almost three times as likely to be engaged compared to employees whose managers do not hold regular meetings. Investing in strong management practices not only fosters employee happiness but also drives higher levels of performance and organizational success.
How satisfied are employees with their coworkers?
Team cohesiveness and harmony play a significant role in overall employee wellbeing. However, as remote work continues to gain momentum, a growing number of workers are experiencing a sense of disconnection from their managers, coworkers, and the broader company culture, as highlighted by the Corporate Communications Journal.
To prevent these issues in remote workplaces, Mindletic’s Balance Teams tool offers team-building activities and group exercises designed to foster stronger relationships, promote peer satisfaction, and a highly efficient workforce.
How happy are employees with their work environment?
If your organization has a toxic work environment, one-off wellness initiatives alone will not address the underlying issue. It’s crucial to implement a culture change throughout the company.
The first step towards change is assessing your current work environment. Understanding how your employees perceive their work environment is essential. Is it excessively lenient or overly strict? Do they consider it a healthy and supportive working environment or a toxic one?
These questions can be answered by cultivating psychological safety at work, where employees feel safe to voice their concerns, or via anonymous surveys, where employees can provide their honest thoughts.
Summary
- Not all well-being strategies are created equally. Some will improve employee productivity and bottom-line results; others will not.
- Mental health doesn’t have a ‘one-size-fits-all’ approach; a single wellness intervention won’t benefit the entire workforce.
- Employee wellness initiatives should be data-driven, rather than relying on subjective opinions about the workforce.
- Employee wellbeing data can be collected using tools such as the Mindletic app, prompts via Balance Teams, or the free WHO-5 Wellbeing Analysis questionnaire. Alternatively, HR managers can observe other indicators of employee satisfaction, engagement, and retention.
Want to learn more about psychological safety at work and employee well-being? Reach out to our team and get a free consultation now.