The Importance of Employee Well-Being in Boosting Productivity

With the advent of remote working and increased employee responsibility in and out of office, focusing on employee well-being has never been more important. Employee satisfaction and well-being improve retention rates in your business, avoiding costly recruitment fees. It has also been linked to increased productivity and output.

From running mindfulness workshops to funding gym memberships, there are several ways to improve employee well-being. The benefits of improving employee well-being in your business have considerable impacts on productivity.

Let’s find out why employee well-being is important, how it can help your business, and how you can improve the satisfaction of your employees.

What are Employee Wellbeing Programs?

Employee well-being programs are initiatives run by a company that improves the physical, mental, and emotional health of a company’s employees. This can range from flexible or remote working options, creches for childcare, dedicated exercise periods, or even lunch and learn seminars with mental health experts.

In recent years, employee well-being programs have grown in popularity. Many businesses — especially in Europe — see it as an essential part of business operations. This is partly because younger employees insist on better working conditions, but also because companies are seeing boosted productivity from satisfied employees.

A healthy work-life balance has never been so important in a world plagued by mental and physical health issues. Employee well-being programs combat these issues and benefit both employees and employers.

Employee well-being programs may include:

• Online EAPs (Employee Assistance Programs) — portals for healthcare services and discounts
• Corporate gym memberships
• Corporate mental health and therapy memberships, including apps like BetterHelp and Headspace
• Cycle-to-work schemes
• Mental health days (separately allocated from vacation days)
• Free fruit in the office
• Seminars with mental health and well-being experts
• “Afterwork” meals and drinks for employees — paid for by the company
• Team building days — fun activities that improve the social dynamic of a company’s staff

Why Do You Need To Think About Employee Well-Being?

While employee well-being benefits the employee, why should businesses and bosses think about it? Well, fundamentally, it’s just good business. When employees are happy and engaged, they’re more productive, focused, and invested in their daily tasks. This directly translates into high productivity, increased profit, and other positive outcomes for the business.

Even with the price of investing in employee well-being, the average return on investment (ROI) on these programs is as high as 6 to 1 [1].

Employee well-being programs and initiatives have been linked to:

• Improved retention
• Better brand awareness for candidates and recruitment
• Fewer sick days
• Less presenteeism at work
• Higher productivity
• Increased focus
• Improved creativity
• Increased employee engagement

These improvements are no small feat. All of these aspects contribute to a boosted bottom line for your business. Logically and financially, investing in employee well-being is a no-brainer.

How Does Employee Well-Being Boost Productivity?

There are several ways in which employee well-being boosts productivity. When people are physically active and their mental health is in check, they’re intrinsically more focused on tasks at home and in the workplace [2].

When stress levels are lower through mindfulness training, therapeutic intervention, or something as simple as spending time outside, people are in a more focused state. This means that a person can think through tasks more rationally and logically. This inherently makes people more productive as employees.

Long-term, having boosted self-worth through mental well-being improves confidence and pride. Confidence and pride in an employee’s work allow them to exceed their expectations and the expectations of their employers.

When it comes to physical well-being, if a person is more active they tend to be more agile. Employees working in a physical role are less likely to injure themselves if they’re physically fit. This is beneficial to the employee and the business as employees are less likely to take time off work from strains, sprains, and more serious work-related injuries.

The mental benefits of physical exercise include clearing brain fog and improving creativity, focus, and sleep regulation — all factors that will improve productivity in the workplace.

How Can Businesses Build Employee Well-Being Programs?

Now that you know the benefits that employee well-being programs can have on your business, how can you get started?

The best thing to do is start small and go for impact over impression. While people appreciate a bowl of free fruit and a yoga session at the office, it won’t have a lasting effect.

Try asking your employees what programs they believe they’d benefit from. Develop a list of options and host a vote. Your employees will feel heard and the program they choose will likely be more effective.

Corporate gym memberships or a discount to a local gym are also cost-effective ways to improve employee well-being and productivity. Plenty of chain gyms have corporate options where you can receive reduced rates for team memberships. It doesn’t have to be at a traditional gym either. If you have more of an adventurous office, climbing gyms, yoga studios, and reformer pilates studios tend to offer corporate membership rates.

Although the initial investment and organization might seem intense, the ROI on these benefits will quickly become apparent. To see the productivity benefits of enhanced employee well-being, you need to be consistent. Once you find a program that works, stick to it — it will benefit your business as well as your team’s mental and physical health.

References:

1. Berry, L., Mirabito, A. M., & Baun, W. B. (2020). What's the hard return on employee wellness programs? (pp. 2012-2068). SSRN.
2. Rampisheh, Z., Ramezani, M., Khalili, N., Massahikhaleghi, P., Hoveidamanesh, S., Darroudi, S., ... & Tayefi, B. (2022). Physical Activity and Well-being Status among Employees of University of Medical Sciences. Medical Journal of the Islamic Republic of Iran, 36.