Business owners are trying countless things to achieve long-term success. Some companies are laying people off, and others are closing unprofitable locations. Budget cuts have been seen, and prices are on the rise. Many owners, however, don’t realize that they need to prioritize employee well-being.
Owners often discuss how their employees are their most valuable assets, but these words don’t translate into actions. Less than 30% of employees thrive at work, and only 33% of managers have a strategy for workplace well-being. To turn this around, they need to turn to corporate wellness programs and other opportunities. These programs must go beyond the physical and include workers’ social and emotional well-being.
Why is This Important?
Business owners may say they have other things they need to focus on that are more critical. The well-being deficit, however, affects millions of workers and leads to economic loss. A company with a high well-being score makes more profit, commands a higher valuation, and outperforms the stock market. Why is this the case?
Well-Being Leads to Success
When business leaders measure well-being in the workplace, they need to consider four factors. They must learn how happy and satisfied their employees are with their jobs. They need to know their stress levels and whether they find purpose in their careers. All four factors must be considered to understand how employees are doing. A company with a high well-being score benefits in numerous ways.
Financial Performance
A high well-being score translates to stronger financial performance. These companies generate higher profits and see a superior return on their assets. They are valued higher than their peers with low well-being employee scores. A business owner may assume this is a snapshot of the business’s current state, but the score also helps predict future performance.
Researchers examined how various companies performed on the stock market. Companies with a high well-being score significantly outperform stock market indices, both in good times and bad. The data shows that companies with high well-being scores are more resilient than their competitors, even when the market is turbulent.
Happy and healthy employees contribute more to their employers. However, some critics say that a successful company leads to employee well-being, not vice versa. Satisfied employees are more productive, and productive employees benefit the company, so all parties benefit.
Driving Financial Success
Well-being leads to productive employees. Happy employees are often more efficient and solve problems rapidly. Happiness usually comes from the relationships people build when they enjoy their jobs. They have more friends and take part in social activities. These relationships allow workers to support one another and collaborate when needed.
People who like their jobs are more creative. Their problem-solving skills increase, and they can provide novel and valuable ideas. They are also healthier, so they miss less time from work. These individuals are less likely to smoke and drink, and they take care of their bodies.
When employees talk about the company they work for positively, others want to work for this company. These individuals may even be willing to take a pay cut to work for a company that prioritizes employee well-being. When a person gets a job with a high well-being score, they are likelier to stay with that company.
Wellness programs are only one benefit a company should focus on when attracting and retaining top talent. However, every employer must recognize that employee well-being drives financial success. If they want the best employees, they cannot ignore this element when determining compensation, benefits, and perks.
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