Why should you invest in employee well-being?

If you intend to invest in employee well-being, understanding how to define it is a good place to start. Well-being can relate to an employee's physical, mental and emotional health, meaning your employee well-being strategy should consider ways to support workplace wellness in various ways.

Well-being differs from wellness in that it also encompasses employees' perspectives on their lives and whether their current situation reflects their goals and values. Research suggests that there are five essential elements to employee well-being:

• Career well-being
• Social well-being
• Financial well-being
• Physical health
• Community well-being

Employers can support employee health and well-being in several ways, including providing help with physical and mental health conditions and access to expert advice and self-help resources.

Investing in employee well-being benefits your team as it can help them improve their physical and mental health and also seek support to improve their financial well-being. However, the support you provide comes at a cost to your company. What are the benefits of investing in employee well-being, and how do they impact business success?

Attract top talent

Gen Z job seekers are increasingly seeking work that aligns with their values and beliefs, and they're more likely to hop between roles to find greater job satisfaction. A 2024 survey found that having a sense of purpose was integral to the well-being of Gen Z and Millennial employees. They would also reject employers who didn't adequately support employee well-being through mental health support and a positive work-life balance. Demonstrating your investment in employee well-being can help to attract talented job seekers and boost your company's reputation.

Investing in employee well-being will impact business success by enabling you to attract top talent.

Improved staff retention

Attracting talented staff can help your company succeed, but the recruitment and training process can be expensive. Retaining staff is equally important, and supporting employee well-being means they're more likely to stay. Research suggests that well-being benefits significantly impact an employee's decision to remain in their job. Workers seek benefits that support physical health, mental well-being, and work-life balance.

PwC's Workforce Hopes and Fears Survey 2023 found that 23% of UK workers expected to change jobs in the next year. The cost of living crisis meant many sought a higher salary to meet increased living costs or improve their financial well-being. However, around a fifth of those seeking a new role were looking for better job quality. PwC's analysis found that well-being benefits could improve employee retention when an increased salary wasn't possible.

Well-being benefits can include flexible working arrangements, employee discounts, career development support, and mental and physical wellness programs.

Reduced absenteeism

Absenteeism can significantly impact business success and the UK economy. In 2022, it's estimated that the UK lost 185.6 million working days through employee illness or injury. This represents 2.6% of working hours, the highest percentage since 2004.

Sickness absence can reduce productivity and increase stress for other team members who must shoulder their colleagues' workloads during absences. In 2023, Vitality's Britain's Healthiest Workplace survey found that employees were absent for an average of 6.1 days per year, but poor health also made them less productive at work even when they didn't take time off. The survey identified poor mental health, musculoskeletal issues, a lack of physical activity, and poor diet as risk factors affecting workplace wellness.

Greater employee engagement

Employee well-being positively impacts engagement, with engaged workers having higher employee morale and a sense of purpose. However, highly engaged employees who struggle to care for their own health are at increased risk of burnout.

If your company has engaged employees, you'll benefit from reduced absenteeism, staff turnover, and fewer accidents, as well as increased productivity, profitability, better quality work, and greater customer loyalty. With results like that, taking care of your team makes sense.

Increased productivity

As we've seen, highly engaged employees are typically more productive. However, research suggests that productivity rates are even greater when workers thrive outside of work. Gallup's report on the impact of employee well-being on productivity found that engaged employees who weren't otherwise thriving were at increased risk of work-related stress, negative emotions and burnout compared to those who reported good overall well-being.

It's vital employers remember that personal issues at home can impact performance in the workplace environment and provide support to help their team cope in a fast-paced world.

We hope we've demonstrated the benefits and encouraged you to invest in employee well-being. As we've mentioned, well-being can apply to many aspects of an employee's life. Your well-being strategy can include various elements. Considering data, including absence records and third-party reports on well-being benefits, is a good idea. You can also ask your employees what they need via surveys, staff forums and one-to-one conversations.

Here are a few ways your business can invest in employee well-being.

Lead by example

When you commit to workplace well-being, it's important to lead by example. For example, you might encourage your employees to take a proper lunch break so they can relax, eat well, or go for a walk. They're more likely to do so if they see their managers going out rather than eating a hasty sandwich at their desks between emails. Equally, if managers work flexibly to suit their family commitments or fit in an exercise class, others will likely do the same.

It's also wise to encourage an open management style in which supervisors discuss their health and wellness goals or mental health struggles. These discussions can motivate employees to set goals and encourage them to seek support for their challenges.

A positive management style is also vital to a good company culture. A work environment that promotes employee well-being helps workers feel valued and supported, increasing employee engagement and reducing work-related stress.

Provide mental well-being support

A recent survey found that mental health support was the fourth most highly valued employee benefit. Providing your team access to counselling or cognitive behavioural therapy (CBT) can help them cope with life's ups and downs. An employee assistance program (EAP) can provide access to counselling and other expert guidance. EAPs are available as a standalone service or via employee health insurance.

You can also provide links to self-help resources from reliable sources, such as the NHS or health insurance providers. Share links on the company intranet to ensure employees can access these resources when needed. It's also a good idea to send regular reminders via email or as part of your workplace wellness programs.

Invest in employee health insurance

Employee health insurance provides access to private healthcare and includes various well-being tools and support services. Most providers offer health and well-being assessments identifying potential health issues and risk factors. They also help employees set healthy lifestyle goals and provide ongoing support.

Your health insurance provider can also support employees' financial well-being. Most include rewards and discounts for members to help your staff save money. Many rewards include health benefits, such as discounted gym memberships and fitness tracking technology.

You can tailor your health insurance coverage to provide quick access to medical treatment and add support services such as an EAP to provide counselling and other guidance.

Create well-being initiatives

Well-being initiatives focus on a particular well-being goal and support your team in achieving it. You can tailor your initiatives to workforce needs and tackle issues such as stress, poor diet, or health issues caused by a sedentary lifestyle. There are various ways to choose your focus. You can ask your team what they'd like to improve about their health and well-being or use sickness absence data to identify patterns. Your health insurer can also provide anonymised data showing health trends from their employee health assessments.

Initiatives should include training, education, and practical support. For example, if you want to encourage your employees to eat a healthy diet, education can show what a good diet looks like and its benefits. Providing healthy snacks and lunchtime cooking sessions helps employees put their knowledge into practice.

Build positive workplace relationships

Positive work relationships are great for employees' well-being. They improve morale and provide support when team members experience stress or personal issues. Good relationships are also crucial for well-being, as strong social bonds can prevent loneliness, improve self-esteem, and reduce symptoms of anxiety and depression. Having a close friend at work can increase engagement and productivity and reduce staff turnover. Employees who feel valued and part of a strong network are more likely to remain part of the team.

Workplace well-being initiatives can help your employees build good relationships across departments and with colleagues at different company levels. You can also organise lunchtime activity groups or social events to provide staff with informal gathering opportunities.

Support a good work-life balance

A positive work-life balance looks different for each employee and will likely change throughout their lives. Flexible working arrangements allow workers to balance their personal and work commitments by changing their hours or work location.

Flexible working can help employees reduce stress, spend time with loved ones, and engage in activities that support their well-being, such as exercise. ACAS research into flexible working found links between work-life balance and various metrics. Employees who felt they had a good balance were more productive, provided better customer service, and were highly motivated. They were also less likely to take time off sick or resign.

Investing in employee well-being benefits your team and supports business growth. At Globacare, we help you find the right insurance products to improve your employees' health and well-being. Contact us for advice tailored to your business.