The concept of workplace wellbeing came into sharp focus during the pandemic and it is now seen as a priority for organisations, rather than a nice to have. The one-off yoga classes or healthy breakfasts have been replaced in many organisations by integrated wellness initiatives, often tailored to a particular employee cohort. Research on this relatively new phenomenon is still emerging; however, experts say that not only does looking after employee wellbeing aid recruitment and increase retention, but the investment is ultimately rewarded with increased profits.
Perhaps unsurprisingly, the market for these offerings is booming – an estimated $61.2 billion (€54.7 billion) was spent by organisations on wellness interventions in 2021, with that amount projected to grow to $94.6 billion (€85 billion) by 2026. It’s a simple case of supply and demand: according to MetLife’s recent Employee Benefit Trends Study, most workers now see wellness programmes as “essential” – some 78 per cent of Gen X workers and 79 per cent of boomers, compared with 56 per cent in each category in 2019.
Aisling Campbell, head of HR with Accenture in Ireland, says employees are expecting more from employers; they’re expecting them to lead responsibly, and that includes caring for their wellbeing.
“Organisations must continuously evaluate and address the changing needs of their workforce, covering emotional, physical and financial aspects to enhance workplace morale and attract talent,” says Campbell. “For so many of us, work is a huge part of our lives, so working somewhere that prioritises wellness will likely have a positive impact on our overall wellbeing.”
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Mary Connaughton, director of CIPD, the professional body for HR and people development, says workplace wellbeing no longer takes the form of token offerings, nor is it solely the preserve of larger multinationals. Connaughton says it has become embedded in operations to the point where it is viewed as its own specialism within HR, with many employed in specific “wellness” roles.
“The perception of wellbeing programmes has definitely changed,” she says. “Years ago it was felt that some of those things were simply being done for ‘gloss’ but we now put much more attention on the employee experience. And if you are doing something to just look good, it doesn’t land with the employees and can even have a negative impact.”
Indeed, workplace wellbeing has even evolved to the point where it is being tailored to the needs of employees, rather than a one-size-fits-all approach, adds Connaughton, who also notes that menopause and fertility policies are becoming more common.
“Companies are talking to their employees more and surveying them, about what they need and what would be helpful around wellbeing in terms of initiatives,” she explains. “A different age cohort might come up with a different ask in terms of employee wellbeing.”
For example, newly hired graduates may want more leave so that they can travel, while workers with families may require flexibility around school drop-offs and collections.
Campbell agrees. “It’s imperative that organisations ensure they’re getting the basics right for people – the small things really do matter,” she says. This can include things like ensuring healthy workplace assessments are carried out, offering flexible work policies and fostering a positive workplace culture. “These are the building blocks to enable people to thrive at work.”
Connaughton points out, however, that with workplace wellbeing policies now viewed as a necessity, companies are taking their wellness offerings to the next level in an effort to attract and then retain staff. This investment invariably has an impact on company profits, she believes.
“Most companies are still struggling with staff numbers, so if you are retaining your people and not losing them, that has a bottom-line impact because it means you have more skilled people and you are not investing more time and money in recruitment.”
She says research has shown how mental health issues are contributing to absenteeism in the workplace. “Now we see more support for people around mental health in workplaces than before – if you tackle absenteeism, you are reducing your costs and that also has a bottom line impact,” she says.
Connaughton is right when she says the research on the direct and indirect impact of investing in employee wellbeing is still emerging. But a recent survey by Wellhub, a global wellbeing company, found that 99 per cent of HR leaders felt it had increased employee productivity, while a survey by Aon suggested companies that improve employee wellbeing by 4 per cent see a 1 per cent increase in profits and a 1 per cent decrease in employee attrition.
Accenture carried out research into this area back in 2020, speaking to 3,200 senior executives and more than 15,600 workers spanning 10 countries. They found that by meeting six fundamental human needs through work – emotional and mental; relational; physical; financial; purposeful; and employable – companies unlock significantly more of their employees’ potential.
“We call this framework ‘net better off’,” explains Campbell. “When workers are ‘net better off’, they are twice as likely to feel like they belong and to feel like they can balance work and life. But our research also found that it’s more than people’s potential that is unlocked – it’s also business potential. As employers boost these dimensions and create meaningful and trusting relationships with employees, they tend to see an increase in business performance.”
Research also shows, however, that not all Irish companies are walking the walk when it comes to employee wellbeing. The Healthy Workplace Ireland: A Survey of Mental Health and Well-being Promotion in Irish Firms carried out by University College Cork and Munster Technological University, found that while three-quarters of Irish employers said they see employee mental health and wellbeing as their responsibility, 80 per cent of them are not yet investing in workplace mental health.
Laggards in this area will not reap the benefits, says Connaughton. Provision for the wellness needs of employees and managers was discussed in detail at CIPD’s recent Wellbeing Conference in Croke Park. “This will now be an annual event,” she says. “Wellbeing now deserves attention in its own right.”
Sanofi wellness initiatives have had positive reactions and results
Martin O’Leary is head of people and culture with pharmaceutical company Sanofi, which employs around 800 people and 200 contractors in Waterford. He says the organisation places huge emphasis on the wellbeing and happiness of its diverse workforce.
“A lot of work goes into creating an inclusive work environment, where people can come to work and feel happy, safe and physically and mentally good,” says O’Leary.
For example, the company has an occupational nurse based on-site, and a doctor that visits regularly. An on-site gym is open 24/7 (the yearly joining fee is €30), which offers 30 hours of weekly classes that can be booked by employees via an app.
“People can get their exercise done before or after work, and we also have walking areas on their grounds and offer healthy options in the on-site canteen,” says O’Leary. “We want to create an environment where people feel they can come to work and still feel physically good.”
While this goes far beyond a token offering, O’Leary stresses it is very much opt-in for those who want to avail of it.
A holistic approach to wellness has led Sanofi to introduce some innovative schemes, such as its Cancer at Work initiative, which commenced earlier this year.
“This means any employee on site unfortunate enough to be impacted by cancer, directly or indirectly, receives 12 months off fully paid,” explains O’Leary. “There is also a lot of flexibility around working hours for those who have family members who have been diagnosed with cancer. We also provide counselling or any additional support they might need from our nurse.”
There was a hugely positive reaction to the introduction of the scheme, he adds, and several employees have already availed of it.
Hybrid working and flexibility also contributes hugely to employee wellness, O’Leary believes. “We are really conscious in a manufacturing environment that half the population can’t avail of hybrid, so those who have to be on site can job share or work flexibly,” he adds.
Not only do the initiatives under the company’s wellness umbrella make it a more attractive employer, they also help to retain Sanofi’s existing employees, says O’Leary.
“People aren’t going to decide to join or stay at a company because you give them a free breakfast but productivity has gone up and absenteeism has decreased,” he says. “The wellbeing piece and the investment we have put into it absolutely pays off.”