Companies that prioritize the health and happiness of their employees have the long game in mind and can excel when it comes to employee retention, revenue, and productivity. That’s because today’s employees, especially those in Generation Z, achieve their fullest potential and contribute immensely to overall productivity in a working environment catered to their well-being. Company leaders focusing on employee well-being and incorporating better work practices will reduce the turnover in their industries, simultaneously fast-tracking business growth.
Could Happy, Healthy Employees Be the Key to Employee Retention?
It’s no secret that employee turnover can have a substantial impact on an organization’s bottom line. With turnover rates hiking up to 60 percent in the corporate business world, according to the U.S. Bureau of Labor Statistics, there’s no better time to adopt proactive strategies that improve employee retention. Companies should invest in a work culture that supports the mental health of their employees, as that will enable them to reduce the constant churn of staff and bypass the staggering cost of recruiting new talent.
We are shifting more towards the next generation of workforce, typically referred to as Gen Z, a generation particularly sensitive to mental health issues. They want to feel heard and seen. The sooner you adopt the right practices that give them that sense of belonging, the longer you can keep them engaged and productive. After all, nobody wants to be in a place where they don’t feel needed.
We’re not aiming to please everybody but with turnover rates in professional services as high as 63% last year, down only 6% from 2020, employers would agree this situation is not ideal. As leaders looking for ways to effect the bottom line, focusing on the people aspect of your organization in 2024 will lower your turnover rate and add percentage points to the bottom line.
By creating healthier employees, you give them the capacity and motivation to go above and beyond, significantly impacting your company’s revenue and growth. By taking care of their health, both physical and mental, companies may notice reduced sick days and callouts for self care days. They may also notice lower stress levels in the office directly translating to a more efficient and effective workforce.
How Leading Companies Are Reacting to The Employee Health & Happiness Culture Movement
While most companies are still coming to terms with the fact that employees deserve better care, others have offered mental health resources as well as wellness programs that support work-life balance. These companies believe that happy, healthy employees are an invaluable asset and are reworking their DE&I policies to prioritize employee overall well-being.
- NIKE, Inc.
The world leader in sports apparel, NIKE, Inc., incorporates a work culture that is focused on employee satisfaction. They offer comprehensive mental health benefits, such as 20 free therapy and coaching sessions for employees and their families through EAP, with the addition of meditation and caregiving resources. They also ensure their staff keeps up with fitness by allowing them into Nike Sports Centers and providing great healthcare benefits. NIKE, Inc. also permits their employees to go on short leaves, including Summer Fridays and a Well-Being Week in August, enabling employees to recharge and be at the top of their game.
- Microsoft
Microsoft is another company that believes in the importance of open dialogue in relation to mental health. Employees at all levels are allowed to share their personal struggles through Microsoft Cares, a subsidiary of Microsoft, so they can receive support. The culture at Microsoft fosters open dialog and encourages in person, on social media, and on podcasts to share their mental health journey and many leaders have come forward to share their stories and struggles, paving the way for other employees.
- Salesforce
At Salesforce, employees are well taken care of thanks to a five-pronged approach that includes personalized care, stress management, therapy and coaching, generous time off, and rehabilitation services. The company partners with Lyra Health to provide therapy for staff and their family members. When it comes to physical health, they offer healthcare solutions like medical reimbursement and personalized counseling services to their workforce.
- Palo Alto Networks
As a global cybersecurity leader, Palo Alto Networks is dedicated to creating a healthy work environment that caters to the physical and mental well-being of its staff. It achieves this goal by helping employees and their eligible dependents access self-serve resources through Modern Health, the organization’s global wellness partner. These resources range from private counseling sessions with licensed clinical therapists, guided meditations, and unlimited live group or private sessions with certified mental health, career, and finance coaches. Additionally, employees receive $1000 annually for health support as well as other perks like Flexible Time Off, a non accruing perk that just needs a manager’s sign off.
Strategies for Fostering Employee Health and Happiness
Burnout is one of the top HR challenges today. In fact, experts say that stressed workers are costing employers billions of dollars each week. And considering that there are more Gen Z in the workforce everyday, these employees are aware of their stressors, and it’s important to level up employee engagement strategies to prevent losing talent to competitors. Whether you’re setting up a new team or making changes to an existing one, here are a few steps to consider:
Employee Engagement Education:
Ever heard the quote, “If you think education is expensive, try ignorance”? A lot of companies chose ignorance over the needs for their employees, and the result was an exodus of their talented workforce during the great resignation. Ensuring leaders are given the right education on employee engagement and passing down education to employees on managing happiness can be the right first steps.
Thankfully, Harvard is offering courses on Managing Happiness and Improving Your Business Through Implementing a Culture of Health for free. These are in addition to Web Programming, Computer Science, Entrepreneurship, Python, and AI classes, indicating that managing health and happiness are two critical skills, in additional to top technical skills, for long-term success in business. In order to create a growth-driven environment, take your company to the next level, and improve your company’s reputation in the marketplace, take advantage of these Harvard courses while they’re still free.
Flexibility:
A flexible work arrangement continues to be a top driver for job seekers and employees when seeking alignment in their current or next organization. With more companies offering flexible options to workers, it’s becoming imperative to offer flexible options in order to retain yours.
Allowing your employees to choose their hours, or implementing a 4 day work week can lead to increased productivity and reduced turnover rates. By introducing a 4 day work week, or hybrid work schedules that require less commute time, or allowing employees to work fully remote, have been shown time and time again to drive high levels of employee engagement, productivity, and well-being. Better still, in cases of high work demands, distributing tasks more evenly, adding in Flexible Time Off after peak demand passes, and reminding employees of resources or tools available to help manage their responsibilities efficiently will decrease the odds of burnout and prevent additional health risks.
Ask for feedback:
Be subjective in your approach when dealing with your employees. Interact more with them and ask for their opinions on issues, especially ones concerning them. They’re a huge part of your company and deserve that recognition. By allowing your staff to participate in the decision-making by identifying and solving workplace problems, you earn higher levels of loyalty, decrease turnover, and drive buy-in, which can increase engagement and productivity.
Promote a Welcoming Environment
Another strategy to improve employee well-being is to create a work environment where employees support each other. Encourage open communication, active listening, and a non-judgmental atmosphere where employees feel comfortable sharing their concerns, both personal and professional. When employees have psychological safety within work relationships, it can reduce psychological distress and enhance attitude toward work.
Fostering a sense of belonging at work doesn’t have to be over complicated. By appreciating employees for their hard work and celebrating their achievements, you can tie their work and accomplishments to company goals, allowing them to feel more connected to your company, illuminating how their work is contributing to the big picture.
Encourage Physical Health
Physical health is closely linked to well-being. Absenteeism due to illness results in low production, affecting the bottom line in the long run. However, you can prevent that by promoting regular exercise, healthy eating, and providing opportunities for employees to stay active during the workday. Implementing wellness programs, including workshops, fitness classes, meditation sessions, or access to counseling services, will help employees develop healthy habits and manage stress.
Improving employee well-being is not just a way to help your employees feel better; it’s a needed strategic investment. When you prioritize the health and happiness of your employees, they become more engaged, productive, and will likely stay with the company for the long term. Leaders need buy in from employees to create an impact, and employees drive more results when they are healthy and happy. Thriving companies in 2024 will have leaders that prioritize their employees’ needs and top talent will no longer settle for companies that value them, completely.