Beyond the Bottom Line: Why Prioritising Well-being is Non-negotiable for Businesses
Businesses are waking up to a world where its success is no longer measured by its profit margin, and the days in which employee well-being was a ‘nice to have’ are over. With almost
one-fifth (19%) of workers in the US deeming their mental health as fair or poor, employee well-being is becoming increasingly detrimental to businesses and society as a whole (Inc, 2022). It’s time for businesses and leaders to take proactive steps in creating positive change. Falling short of this not only risks them falling through the cracks but risks the lives of their employees.
Workplace well-being is no longer a ‘nice to have’
With the ever-growing rise of Environmental, Social, and Governance (ESG) responsibilities within all businesses, leaders have no choice but to acknowledge the second pillar (Social), and the growing demand and importance of employee well-being. The exacerbation of societal well-being by Covid-19 is highlighted by Deloitte’s study, revealing that 28% of employees were contemplating resignation in 2021-22, with 61% of those deeming poor mental health as the reason why (Deloitte, 2022). Today, more than ever, businesses and leaders alike must recognise their integral role in supporting and prioritising employee wellbeing; failure to do so risks a dwindling workforce and further detriment to societal health.
In addition to mass resignation, the economic repercussions of poor employee mental health pose a definitive threat to businesses. With over 60% of employee absenteeism being attributed to poor mental health (particularly burnout), businesses must implement changes
before further damage is caused (Robinson, 2019). Moreover, Gallup estimates that such high absenteeism is costing the US economy $14.6 billion annually (Inc, 2022). This shows that prioritising employee well-being is not just a compassionate and morally necessary investment, but a strategic measure that safeguards both the financial health and well-being of the business, not just its people.
There is abundant research which details the correlation between deteriorating employee well-being and increasing suicide rates – time has run out and businesses must change now. Specifically, Dr Clark Gaither argues that employee burnout rates are rising rapidly in parallel with suicide rates, and that businesses must engage in transforming their conduct to create a safer future (Gaither, 2018). Whilst workplace well-being was once a niche and progressive addition to a business, the world is beginning to acknowledge it could make the difference between, quite literally, life and death. Cultivating a work environment which prioritises inclusivity, support, and understanding is no longer a choice, but an absolute requirement for any organisation.
Businesses must change, starting yesterday
Employee perks such as gym memberships, free healthcare, and flexi-working are certainly helpful, but they are far from enough. Employee well-being largely depends on intrinsic measures, like feeling valued and being cared for by the people around them at work. Alarmingly, only 56% of employees believe their executives care about their well-being, contrasting the 91% of executives who think their employees feel cared about (Hatfield et al., 2022). This problematic difference in sentiment between employees and executives displays
the need for a sociological shift in workplace culture, towards one which educates and advocates for positive mental health and well-being across all businesses, employees, and positions. Businesses wishing to survive must nurture a workplace where well-being as a priority comes from the top down, employees should feel valued without having to ask for it.
Whilst tackling the employee mental health crisis is a multifactorial feat, unity is a factor never absent. Leaders and organisations must work in unison to create a culture of support and empathy, but again, this is the responsibility of those in power. A successful example of a proactive top-down cultural support system is evident at Cisco Systems. Former CEO, John Chambers, issued a mandate to the entire company that, if something difficult or troubling happened to an employee, he would know about it within 48 hours. This created a workplace ecosystem which fostered empathy, community, and awareness at work (Worline, 2017). Having a societal culture of openness and communication drives the notion that a problem shared is a problem halved. Going forward, businesses must ensure an environment which enables a more intimate transparency, creating a safe space for difficult conversations to be heard and listened to.
A new dawn
It is undoubtedly clear that prioritisation of well-being at work is necessary. There is no more time for businesses to simply acknowledge the problem at hand - employee well-being
cannot be an afterthought - it must be an integral part of organisational DNA. Businesses must ensure the terms ‘empathy’, ‘communication’ and ‘support’ are more than just buzzwords of a utopian workplace future but lived experiences of every employee.
So, as the sun sets on the old, let the dawn bring in a new era, where employee well-being is a priority. This marks more than a shift within the corporate landscape, but a promise of a more compassionate and radiant future for all.
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