Organizations have an engagement problem. And a productivity problem. It was understandable — and expected — during the 2020 pandemic, but the ongoing drop in employee engagement and productivity has made it a top priority for businesses everywhere.
A recent Gallup survey revealed a continual decline in employee engagement in the U.S. — the first decline in nearly a decade. Thirty-six percent of employees were engaged in 2020, 34% in 2021, and 32% in 2022.
But it's not all doom and gloom. Gallup's 2022 Exceptional Workplace Awards highlighted companies that have achieved an average employee engagement rate of 70%, almost twice the average. How do they do it? One of the ways they've maintained enviable engagement rates is by putting employee well-being at the center of work.
You can, too. It starts with an employee-focused total rewards program that offers the perks and benefits employees need to prioritize their well-being.
Health insurance, compensation, paid time off (PTO) — they're all part of a total rewards program. But total rewards also include mental health benefits, professional development courses, savings accounts, and other non-monetary rewards. So, when you start putting together your total rewards program, be intentional about what you include and how you’re supporting employee well-being.
You'll also need to define a clear strategy for rolling out your total rewards program. Consider who you need to get buy-in from, when to bring in your employees' perspectives, how to streamline implementation, and how to measure the success of your program.
As you implement your total rewards program, keep an eye on employee engagement and productivity. Like the Gallup Exceptional Workplace Award (GEWA) winners that prioritize employee well-being, you'll likely see increases in both.
Employee well-being is about an employee's mental, emotional, physical, and financial health, as well as an employer's role in each. While taking care of your employees is the right thing to do, many organizations are also reaping the benefits of building total rewards programs around well-being.
When employees feel that their employer cares about their overall well-being, they're:
On top of that, 71% of human resources (HR) practitioners, managers, and executives can clearly see a return of investment of their well-being efforts.
Not sure what to include in your total rewards program? Start with employee well-being. Not just healthcare or employee assistance programs (EAP) — give employees comprehensive benefits that address overall well-being.
These benefits help keep employees healthy, allowing employees to show up and do their best work. You can support employee health by providing impactful health benefits and supporting movement and activity throughout the workday.
Some physical well-being benefits to consider are:
These initiatives aim to support employee health but also have some serious business benefits. Research from Harvard shows that companies prioritizing employee well-being have lower healthcare costs, less absenteeism, and higher retention rates. Standard healthcare benefits, like preventative care, on-site nutritionists, or access to a virtual health coach or personal trainer, also reduce healthcare costs.
BetterUp recommends supplementing with some less common perks:
In part because of the 2020 pandemic, employers started offering more comprehensive mental health offerings. And for good reason — studies show that workplace stress costs organizations $200 billion in healthcare expenses annually.
That's not all. A joint survey from FlexJobs and Mental Health America (MHA) highlighted other reasons to put mental well-being first:
The good news: a Gartner survey showed that businesses offering mental and emotional well-being support saw more than a 5% increase in employee engagement. You can, too, by supporting employees through well-being benefits like:
These benefits all aid in improved employee engagement, but EAPs go beyond that. They support employees and indirectly support the business by increasing employee productivity and retention and reducing sick days. Plus, organizations see cost savings between $2,000 to $3,500 per employee through reduced absenteeism and presenteeism.
Lastly, work-life balance. The best strategy is based on what matters to your employees, but a few common practices generally help employees find a healthy balance. Giving employees schedule flexibility, paid time to volunteer, and meetings-free and mental health days are a good start. Also think about empowering employees to set strict boundaries, like not answering calls after hours.
Between inflation, mass layoffs, debt, and economic uncertainty, employees have every reason to stress about money. And, as PwC's 2023 Employee Financial Wellness Survey shows, employees are exceedingly worried about their finances.
But it goes beyond just worrying about finances — nearly half of the employees surveyed find it difficult to meet their monthly household expenses on time, while 44% can't make their minimum credit card payment every month.
Employees are carrying a lot of financial stress and worry and are looking to their employers for help. If you're not already building financial well-being into your total rewards program, it's time to start.
PwC's survey revealed that 68% of employees report using the financial well-being services their employers offer. They want help. And, like with every other facet of overall wellness, your organization benefits from giving employees access to financial benefits.
Data from PwC's survey shows that financial stress negatively affects many aspects of an employee's life, from sleep to mental health to self-esteem. Compounded, people show up at work distracted, disengaged, and looking for a way out.
Thirty-three percent of full-time employees say their financial worries have made them less productive at work, with 56% spending more than three hours per week thinking about or dealing with personal finance issues.
Not only are they less productive, but employees dealing with money stress are twice as likely to look for a new job with an employer that cares more about their financial well-being.
You can lessen this burden in a few ways:
Personal development typically focuses on personal growth. In the workplace, it's about self-improvement and expanding skills, knowledge, and abilities to help employees advance their careers. It benefits both the employee and your company.
How? Organizations need employees to grow in their careers to continue providing value to the business. Nothing has made this more apparent than artificial intelligence (AI). Along with other new technologies, AI has highlighted the need to upskill employees to remain competitive.
Great Place to Work has a few suggestions on how to do that:
Want to empower and engage employees their way? Personal development is the answer. It helps employees build their confidence as they broaden or deepen their skill sets and empowers them to put their career trajectory in their own hands. This newfound confidence and control over their futures gets employees excited about accomplishing something new.
Let’s say an employee struggles with leadership. As they build those skills, they may begin volunteering to lead projects and experience the positive outcomes of their leadership. The result? They’re even more motivated to continue their development, a key driver of employee engagement. You’ve now got engaged, motivated, and empowered employees.
Countless research and surveys have come to the same conclusion: employee well-being matters. It drives increased employee engagement, satisfaction, and productivity. And businesses are catching on.
A global well-being survey from Aon shows that most organizations (80%) have begun integrating employee well-being benefits into their business strategies. They're finally thinking about the whole employee and how to support their physical, mental, and financial well-being while providing benefits that support their personal development.
It starts with implementing a total rewards program focused on employee well-being. So, if you want to prioritize overall wellness and realize the benefits of happier, healthier employees, it's time to get on board.
Looking for advice on how to best build out a total rewards program focused on employee well-being? This blog outlines how to get buy-in for, build, and deploy a successful program.
We’re also here to help you roll out the benefits in your total rewards program. OneSource Virtual (OSV) delivers in-tenant technology and expert services to automate the administrative, transactional tasks of Workday Benefits. With over 1,000 customers and a 95% customer retention rating, OSV is the leading exclusive provider of Workday Business-Processes-as-a-Service (BPaaS) solutions.