Workplace Wellbeing

strategic asset or Fundamental risk mitigation?

Workplace wellbeing has evolved beyond physical safety to include psychological health, prompting organisations to update their policies and practices, to mitigate against risks such as psychosocial hazards. But is wellbeing merely a risk management tool or an underutilised driver of business success?

An interesting study by the University of Oxford, examined the relationship between employee wellbeing levels and business performance. Utilising crowd sourced data from the Indeed Work Wellbeing Score, researchers analysed responses to wellbeing questions submitted by employees from over 1,600 U.S. listed companies. They compared these against key business performance measures, with their findings showing, higher levels of employee wellbeing are a strong predictor of both present and future organisational performance, correlating with:

·       greater company value,

·       higher annual profits,

·       higher returns on assets,

·       stronger stock market performance.

Forward-thinking organisations are leveraging these insights to look at wellbeing beyond a risk management perspective and are instead, recognising that developing thriving individuals, fosters a thriving organisation, with the two being mutually reinforcing. Yet how many companies use wellbeing strategies to move beyond this first step of risk mitigation and fully embrace wellbeing as a driver of business success?

Whilst company benefits such as access to gyms, healthy snacks and wellbeing days off are nice to have, the real opportunities to support thriving lie within the day-to-day interactions, mindsets and practices within an organisation. Attributes such as those which contribute towards higher levels of job satisfaction, happiness and connection to purpose and others.

By adopting a pro-active approach to wellbeing, we can support people to not only be safe and productive at work, but be energised, engaged and motivated. Allowing individuals and leaders to harness potential and not just performance to drive optimal functioning.

To summarise, wellbeing strategies can be actioned to not just manage risks, but instead become a strategic asset which fosters both thriving individuals and organisations alike.

To harness this potential, we should start by asking ourselves:

·       How does our current wellbeing strategy go beyond risk management?

·       What changes can we implement to support employee thriving?

·       How can we both build and sustain elevated levels of employee wellbeing and performance?

If you would like to learn more on the study, further information can be found within the: University of Oxford Wellbeing Research Centre Working Paper 2304.