In addition to physical and mental health, employee well-being encompasses the sense of fulfilment and balance between work and personal life. A key challenge for organisations is identifying their employees' needs and implementing effective strategies to meet them.
The 2023 Gallagher Benefits & Consulting Workplace Wellbeing Index Report is one of Australia’s largest and most comprehensive studies into employee wellbeing and its impact on business performance. The key trends highlight the need for businesses to prioritise employee wellbeing to ensure business growth. The data shared shows ‘Low well-being, mental health, burnout and workplace stress significantly and directly impact an organisation’s bottom line.
The key trends emerging from this year's research are:
- Organisations must look beyond just salary and perks to attract and retain top talent.
- Employees' wellbeing is still low and presents a growing risk for organisations.
- Understanding the employee experience is important but taking focused and deliberate action is critical.
What are the benefits of employee well-being?
Employee well-being has numerous benefits for both employees and businesses. It can lead to increased productivity, improved morale, and better customer service. Supporting employees' well-being can also reduce absenteeism and turnover, improve culture, promote work-life balance, and boost a company's bottom line.
Areas where employee well-being impacts business:
Engaged Employees
Businesses with high well-being report 2.3x higher engagement at work.When employees feel valued, they are more likely to engage in their work and the organisation's goals. Regular feedback and recognition help motivate employees to contribute by encouraging autonomy and fostering a sense of purpose. When employees are engaged, there is less absenteeism. The indirect costs of absenteeism are often not accounted for; these are a manager or HR spending time dealing with absenteeism, temporary cover, training, loss of productivity, and overtime.
Reduction in Turnover
The ABS reported job mobility remained at 9.5% for a second consecutive year, which is the highest rate in a decade. Employee turnover places a financial burden on businesses. Josh Bersin of Deloitte shared the cost of losing an employee can range from tens of thousands of dollars to 1.5–2 times the employee's annual salary. Other financial costs include recruitment, employee onboarding, training and loss of productivity.
When employers prioritise employees' well-being at work, they are likely to reduce employee turnover. Employees who feel valued are more motivated and productive and stay with a company longer. Areas that help this are:
-
Clear communication.
-
Competitive remuneration.
-
Work-life balance.
-
Flexible work arrangements.
-
Clear policies on the ‘right to disconnect.’
Work-Life Balance
The 2023 OECD survey reported that 13% of Australian employees worked long hours, highlighting that the work-life balance in Australia is worse than in many other countries.
Poor work-life balance causes employees to experience high-stress levels and burnout. Both have a negative impact on productivity and performance, resulting in lower job satisfaction and increased absenteeism, which in turn impact business performance and customer satisfaction.
Supporting employee work-life balance reduces burnout and turnover and ensures well-being. Flexibility in work hours, remote work options, paid time off for personal commitments, and a policy for the ‘right to disconnect’ can reduce employee stress, which is good for both the employee and employer.
Positive Work Culture
When employees have a healthy work-life balance, it fosters a positive company culture that values their well-being and recognises the importance of having time for personal and family commitments.
Companies prioritising employee well-being and work-life balance increase job satisfaction and reduce burnout. When employees feel supported in their personal lives and have the flexibility to attend to their commitments, they are more likely to be motivated, engaged, and loyal to the company. This ultimately leads to higher productivity and overall success.
How does workforce management software help manage employee well-being?
At its core, workforce management software is designed to optimise employee productivity and efficiency. However, its capabilities extend far beyond these essential functions. Today's advanced systems offer features that can enhance employee well-being in many ways - let's explore some of these.
Flexible Scheduling: One of the most significant ways workforce management software can impact employee well-being is through flexible scheduling options. By allowing employees to have a say in their work schedules, companies can help staff achieve a better work-life balance, reducing stress and increasing job satisfaction.
Time and Attendance Tracking: Accurate time and attendance tracking ensures employees are compensated for all their hours, including overtime. Being paid correctly for the hours worked can help alleviate financial stress and contribute to a sense of fairness and respect in the workplace.
Employee Self-Service: Most workforce management solutions include self-service options via a portal or mobile app—often both. The portal and app enable employees to request time off, view their schedules, and access important documents. Empowering employees with these tools offers them more control and fosters a sense of autonomy and engagement.
Reporting and Analytics: Workforce management software can provide insights into patterns affecting employee well-being, such as excessive overtime, absenteeism, and turnover. The data helps identify areas of improvement and form strategies for improvement.
Implementing workforce management software that prioritises employee well-being requires a thoughtful approach. Organisations should look for flexible solutions, support health and wellness initiatives, and provide actionable insights into workforce trends. Additionally, involving employees in the selection and implementation process can help ensure that the chosen solution meets their needs and preferences.
The benefits of using workforce management software to support employee well-being are clear. In addition to reducing stress and improving work-life balance, it can lead to higher employee engagement and productivity levels. Employees who feel valued and supported are more likely to be committed to their work.
In conclusion, as organisations continue to navigate the complexities of the modern workplace, the importance of employee well-being cannot be overstated. Workforce management software offers a powerful tool for supporting these efforts, providing a win-win solution that benefits employees and employers. By leveraging technology to prioritise the health and happiness of the workforce, you can build a resilient, motivated, and productive team ready for growth.
Learn more about workforce management and how Access Definitiv can help your business with employee well-being. Workforce Management Software | Software For Your Business