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The global economy is facing unprecedented challenges, with the World Bank predicting a sharp decline in growth. The looming threat of a recession has cast a shadow over businesses worldwide, with a recent World Economic Forum survey revealing that 73 percent of respondents believe a downturn is imminent.
While governments are attempting to intervene with fiscal support packages, their limited fiscal space restricts their ability to fully protect their populations from the unfolding crisis. This places a significant responsibility on businesses, prompting a critical question: How should business leaders respond in these challenging times, and what role should they play?
Amidst the mounting pressures facing businesses, including rising energy costs, inflation, and declining consumer spending, a crucial aspect often goes overlooked – the well-being of their workforce. The data paints a stark picture: only a meager 21 percent of employees strongly agree that their organization genuinely cares about their well-being.
“Only a meager 21 percent of employees strongly agree that their organization genuinely cares about their well-being.”
The Impact of the Economic Downturn on Employees
Employees are bearing the brunt of the economic downturn, grappling with a multitude of challenges that are exacerbating their financial and mental well-being. The rising cost of living, relentless inflation, stagnant wages, and the looming threat of job losses are creating a perfect storm of hardship for workers.
The soaring prices of necessities like food and housing are leaving employees struggling to meet their daily expenses. Inflation is eroding the value of their hard-earned wages, further diminishing their purchasing power and ability to maintain a decent standard of living.
In addition to these economic woes, many employees are facing job insecurity, a constant stressor that casts a shadow of uncertainty over their future. The economic downturn is leading to layoffs and a decline in hiring, creating a climate of anxiety and apprehension.
These combined pressures are taking a toll on the mental and physical health of employees. The constant worry about finances, the fear of job loss, and the challenges of making ends meet are contributing to increased stress levels, anxiety, and depression.
Moreover, the physical health of employees is also suffering. The emotional strain of these economic pressures is manifesting as fatigue, headaches, and digestive issues. The overall well-being of workers is being severely impacted by the current economic climate.
Failing to prioritize employee well-being has far-reaching consequences. Organizations are experiencing a breakdown in effective communication, leading to a drastic drop in employee engagement. Critical issues such as unclear job expectations and a lack of connection to the organization's mission are emerging as major pain points.
The impact is particularly severe among younger generations, with Gallup data indicating a higher level of disengagement among millennial and Gen Z employees. This is particularly concerning given their evolving attitudes towards employers.
Are We Losing Sight of Employee Well-being? A Call for Renewed Focus
Employee well-being, once a top priority for many business leaders during the pandemic, is now slipping down the agenda. A recent survey found that 68% of senior HR leaders, including 40% of chief human resources officers, rated employee well-being and mental health as a top priority in 2021. However, this sentiment seems to be waning.
Data suggests a growing disconnect between leaders' perceptions of workplace well-being support and employees' actual experiences. Microsoft's research indicates that employees are embracing flexible work arrangements while leaders are pushing for a return to pre-pandemic office culture.
Microsoft's data, gathered from an 11-country survey of 20,000 people and trends from LinkedIn and Microsoft 365 activity, shows that employees are working more than ever and facing challenges with multitasking, while leaders are concerned about productivity levels.
Another poll by McKinsey revealed a significant gap in how employers and employees perceive mental health at work. Employers consistently rated workplace dimensions associated with mental health more favorably than employees.
“Many talented workers are leaving for workplaces that align with their personal belief system and show an authentic concern for individual employee wellbeing. People want a good job and a life well-lived.”
From Altruism to Advantage: Why Investing in Employee Wellbeing is a Strategic Imperative
Employee wellbeing might have been viewed as a "nice to have" – an added benefit for those companies that could afford it. However, as the Economist Intelligence Unit report "Rewriting the rules: Building a healthy hybrid workplace" highlights, employee wellbeing is now a business essential.
The report cites a study by the Center for Workplace Health Research that found that every $1 invested in employee wellness programs yields a return of $6 to $30 in reduced healthcare costs and absenteeism. Additionally, a study by the WTIA found that companies with strong employee wellbeing programs have 22% higher productivity and 45% lower turnover rates.
Employees who perceive their employer as genuinely caring about their overall wellbeing reap significant benefits, both personally and professionally. Compared to their peers, these employees are:
- 69% less likely to actively seek new employment opportunities.
- 71% less likely to experience burnout.
- 36% more likely to thrive in their personal lives.
- 3 times more likely to be engaged in their work.
- 5 times more likely to strongly recommend their company as a great place to work and to express strong trust in their organization's leadership.
Teams with high employee wellbeing outperform others, achieving higher customer engagement, profitability, and productivity while experiencing lower turnover and fewer safety incidents. Investing in employee wellbeing not only strengthens resilience but also drives business success.
Why wellbeing platforms are more effective?
While traditional approaches to employee wellbeing have focused on initiatives such as wellness programs and employee assistance programs (EAPs), employee wellbeing platforms have emerged as powerful tools for providing personalized, data-driven, and scalable support for employee wellbeing.
Personalized and Targeted Support
Employee wellbeing platforms offer a personalized approach to employee wellbeing, catering to the unique needs and preferences of each individual. By utilizing data on employee health, behavior, and preferences, these platforms can provide tailored recommendations and resources that address specific concerns and promote overall wellbeing.
Scalable and Accessible Support
Employee wellbeing platforms are designed to be scalable and accessible to organizations of all sizes and across diverse geographies. They can be seamlessly integrated into existing HR systems, providing a unified and centralized hub for employee wellbeing initiatives.
Data-Driven Insights for Informed Decisions
Employee wellbeing platforms generate valuable data on employee health, behavior, and engagement. This data can be analyzed to identify trends, assess the effectiveness of wellbeing programs, and make informed decisions to optimize employee wellbeing strategies.
Integrated Support for Holistic Wellbeing
Employee wellbeing platforms can be integrated with other HR systems, such as performance management and benefits administration, creating a holistic approach to employee wellbeing that addresses both individual needs and organizational goals.
Cost-Effective Solutions for Long-Term Benefits
Investing in employee wellbeing platforms can yield significant cost savings in the long term. By reducing absenteeism, presenteeism, and turnover, organizations can redirect resources towards growth and innovation.
The Future of Employee Wellbeing Platforms
The future of employee wellbeing platforms is bright, as technology continues to evolve and organizations recognize the importance of investing in their most valuable asset – their workforce. By leveraging artificial intelligence, machine learning, and data analytics, employee wellbeing platforms will become even more personalized, predictive, and effective in supporting employee wellbeing and driving organizational success.
Crafting a Wellbeing Strategy with Wellics Digital Platform
Wellics is your guide to creating a culture of wellbeing that empowers your employees and drives organizational success. We'll work with you to design a tailored wellbeing strategy that addresses your unique needs and implement it through our comprehensive digital platform. Embrace a thriving organizational culture with Wellics today. Book your demo, today.