Employee well-being is an important component of a healthy work environment and organization. Companies that promote well-being make it easier for employees to manage stress levels while also maintaining a positive and productive environment.
Well-being can refer to mental and physical health, as well as to more complex matters such as levels of satisfaction and engagement.
The “HR Sentiment 2021” survey by Future Workplace found that:
68% of HR Leaders (of whom 40% are CHRO ) rate employee well-being and mental health as a top priority.
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It’s little wonder that employee well-being is a priority for HR leaders as the market is now estimated at US$20.4 Billion in the United States and is expected to grow to US$87.4 Billion by 2026.
In this article, Mekari will explain the definition, benefits, how to implement employee welfare comprehensively.
Definition and Concept of Employee Welfare
Employee well-being is defined as the overall mental, physical, emotional and economic health of your employees.
This is influenced by factors such as their relationships with co-workers, the decisions they make, and the tools and resources they have access to.
Working hours, salary, and work safety also have a significant impact on employee welfare.
While it will vary from person to person, employee well-being should be at an average level that allows for a productive and healthy workplace.
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External factors also contribute to employee welfare. Stress around financial, health and family issues all play a role in performance at work.
What Does Employee Welfare Include?
According to a recent study by Alight , overall, there has been a large decline in employee well-being from early 2020 to mid-2021, even as employees return to work in the office.
Future Workplace has identified seven pillars to guide HR leaders as they prioritize the well-being of their employees. Employee well-being includes:
- Physical health
- Good career continuity
- Financial health
- social security
- Adequate community
- Mental health
- Purpose driven well-being
With these seven indicators, HR leaders from various corporate backgrounds can find out how to improve or build employee welfare in their companies. If it can be created ideally, of course this can bring various benefits which also have a big impact on the company.
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Benefits of Employee Welfare
There are many profitable reasons for companies to support and encourage employee prosperity in the workplace, including:
1. Increase Productivity
Research shows that employees who are more prosperous tend to be more productive at work because they are well rested, energized and motivated to complete their work to the best of their ability.
Thus, employees remain focused on maintaining healthy behaviors such as exercise, which has been shown to improve sleep quality and productivity at work.
2. Employees are getting more Engaged
When companies create a culture focused on employee health, they usually have a more engaged workforce.
Weight loss challenges, group walks and other wellness activities help employees feel more connected to the company they work for and to their co-workers.
These activities help strengthen the relationships employees have with each other and their managers, and can increase the likelihood that an employee will remain with the company for a long time.
3. Reducing Health Costs
A culture of encouraging employee well-being can result in measurable savings for companies in the form of reduced health care costs.
By improving the health of the company’s workforce, these employees are less likely to get sick on the job. This indicates that employees receive medical care less often, which saves the company funds for health care costs.
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4. Strengthen Cooperation
When employees work well as part of a team, they are more productive and the quality of their work improves. They also tend to be more creative, as teamwork generally results in better collaboration and the development of more innovative ideas.
In doing so, employees can strengthen their relationships with one another, encourage each other, and hold each other accountable for their goals.
Taking part in wellness activities outside of the workplace can also help with team bonding and friendships, which further enhances communication and collaboration in the workplace.
Implementation of Employee Welfare Program
Here are the essential steps for implementing and maintaining your employee benefits program.
1. Internal Survey
Many companies want to implement employee welfare programs but don’t know where to start. Well, you can start with your employees first.
To build the best program, you must first understand your employees’ fears, needs, wants, problems, and concerns. Only then can you truly be sure that your program will be efficient, and will deliver the expected results.
2. Create a Program according to the Survey Results
Use the employee feedback captured in your survey to better plan your welfare program. Based on the insights gathered, you can make better decisions about the content of your program.
For example, if you find that your employees feel disconnected because of social distancing, the social component of their well-being may be compromised.
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If so, one of the components of your program is to improve workplace communication and implement digital solutions that can help your employees stay connected with their colleagues and managers.
If you find that your employees are stressed or experiencing health problems, your program should focus on providing some mental health benefits.
3. Set Goals
Create a program that is appropriate and align with the goals and problems your company is facing.
For example, to increase employee job satisfaction , increase morale, increase retention, and increase productivity.