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Client Advice
Employee Well-being: Holistic Approaches to Mental, Physical, and Emotional Health in the Workplace
Business leaders around the world are currently addressing not only economic volatility, geopolitical instability, and the lingering effects of the COVID-19 pandemic but also a range of organizational shifts that have significant implications for structures, processes, and people. The shifts include complex questions about how to organize for speed to shore up resilience, find the right balance between in-person and remote work models, address employees’ declining mental health,1 and build new institutional capabilities at a time of rapid technological change, among others.
In the present situation on the market where there are many different possibilities but at the same time, each one of them comes with its specific conditions people are increasingly struggling to estimate which one would be the best for their personal and career development. For most of them, it is challenging to judge accurately and they always ask themselves should they stay or should they look for a better opportunity. The dynamic of change is growing faster, and the need for constant learning and development is inevitable in order to stay a competitive staff in the labour market. This raises some questions in terms of their physical, mental and emotional health.
In recent studies and researches the topic of Result-oriented[1] vs. People-Oriented business strategies and Leadership shows the positive and negative side of using each of them independently and if they are well balanced together.
A results-oriented strategy prioritizes achieving specific, measurable outcomes. It often involves setting clear targets, emphasizing performance metrics, and driving accountability towards meeting those goals. The advantages are clear objectives that help in setting clear goals and expectations, which can improve focus, and performance measurement for easily measuring economic success and motivation through targets. In many cases, it is observed that this strategy is accepted by money-driven employees who neglect organizational culture and are not bound to any company. This leads to the disadvantages of the strategy – constant high-pressure environment, leading to stress and burnout, short-term focus over long-term sustainability, neglecting of human factors - employee well-being and development.
People-oriented strategy is the opposite of the Performance-Oriented strategy – the focus is on the well-being, development, and satisfaction of employees. It emphasizes creating a positive work environment, fostering teamwork, and ensuring employee engagement. The advantages are employee satisfaction and retention, engagement and Loyalty which potentially lead to better long-term performance innovation and collaboration. This strategy is not focused on metrics and achieving goals. This results in potential lower economic performance because without clear targets, performance may not always meet expectations and requires significant investment in human resources development in which there is a possibility not to be “repaid”.
McKinsey Global Institute research results from 2023 very clearly express that companies who combine the two strategies and build human capital are more efficient and consistent performers in terms of economic profit and at the same time are more effective in attracting and retaining talents.
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[1] Also could be found as Task-Оriented or Performance-Оriented
By comparing and analyzing the results the balanced approach incorporating both Result-oriented and People-oriented elements, tends to be the most effective. This involves setting clear goals while also ensuring that employees are supported and engaged. This is the most secure strategy for long-term success - clear duties combined with higher employee satisfaction and retention, which results in sustainable performance improvements over time.
In today's fast-paced, ever-evolving and uncertain work environment, the well-being of employees has become a pivotal aspect of organizational success. Companies are increasingly recognizing that a holistic approach to employee well-being — encompassing mental, physical, and emotional health — is essential for fostering a productive, engaged, and satisfied workforce. Reminding of various strategies and practices that organizations can adopt to promote comprehensive well-being which does not include financial and social benefits factors is a crucial point for improving people's health.
Understanding Holistic Employee Well-being
Holistic well-being is an integrated approach that considers the interconnections between mental, physical, and emotional health. Each aspect influences the others, and addressing them collectively ensures a more balanced and sustainable approach to well-being.
Mental Health
Mental health in the workplace encompasses stress management, resilience, mental clarity, and overall psychological well-being and avoiding burnout effect. Key strategies to support mental health include:
- Mental Health Programs: Offering access to mental health resources, such as counselling services, therapy, and support groups, can help employees manage stress, anxiety, and other mental health challenges.
- Training and Workshops: Providing training on mental health awareness and stress management techniques empowers employees to recognize and address mental health issues early on.
- Flexible Work Arrangements: Allowing flexible working hours, friendly and understanding organizational culture and environment according to personalized needs, and a manageable number of tasks can reduce stress and uncertainty, to improve work-life balance, contributing to better mental health.
Physical Health
Physical health is fundamental to overall well-being and directly impacts productivity and energy levels. Companies can promote physical health through:
- Wellness Programs: Implementing wellness programs that include regular health screenings, time during working hours for fitness challenges, and nutritional advice encourages employees to maintain healthy lifestyles.
- On-site Facilities: Providing enough time on working days for going to sports activities, or walking trails can make it easier for employees to incorporate physical activity into their daily routines.
- Healthy Work Environment: Ergonomic office setups, healthy snack options, and regular breaks can prevent physical strain and promote a healthier work environment.
Emotional Health
Emotional health relates to how employees feel about their work, their sense of purpose, and their relationships with colleagues. Strategies to support emotional health include:
- Supportive Leadership: Leaders who demonstrate empathy, provide constructive feedback, and recognize employees’ efforts contribute significantly to a positive emotional climate.
- Team Building Activities: Organizing meaningful employee team-building activities and social events helps build strong interpersonal relationships and fosters a sense of community.
- Purpose-Driven Work: Ensuring that employees understand the impact of their work and feel valued can enhance their sense of purpose and emotional well-being.
Implementing a Holistic Well-being Strategy
To effectively promote holistic well-being, organizations need to adopt a multi-faceted approach:
- Assessment and Feedback: Regularly assess employee well-being through surveys and feedback mechanisms to identify areas for improvement.
- Personalization: Recognize that well-being is not one-size-fits-all. Offer open communication for a better understanding of each employee’s challenges and concerns and take timely actions by the upper management to remove them.
- Leadership Engagement: Leaders at all levels should be trained and encouraged to prioritize well-being over short-term results, setting a positive example and fostering a culture of care.
- Communication: Open and transparent communication combined with the correct actions of the importance of well-being can enhance participation and engagement.
- Continuous Improvement: Regularly review and refine well-being initiatives to ensure they remain effective and relevant to employees’ needs.
Conclusion
The effectiveness of either strategy can depend on the industry, company culture, and specific business environment but in every industry employee well-being is a critical component of a thriving workplace. By adopting a holistic approach that addresses mental, physical, and emotional health, organizations can create an environment where employees feel supported, valued, and motivated. This not only enhances individual well-being but also drives organizational success through improved productivity, reduced absenteeism, and higher employee retention. Investing in employee well-being is, ultimately, an investment in the future of the organization.
Reference:
Madgavkar, A., Schaninger, B., Maor, D., White, O., Smit, S, Samandar, H., Woetzel, L., Carlin, D., Chockalingam, K. (2023) “A dual focus on developing people and managing them well gives a select group of companies a long-term performance edge.” Available at: https://www.mckinsey.com/mgi/our-research/performance-through-people-transforming-human-capital-into-competitive-advantage [Visited on: July, 2024]
Lieberman, Ch. (2019) “What Wellness Programs Don’t Do for Workers” Available at: https://hbr.org/2019/08/what-wellness-programs-dont-do-for-workers [Visited on: July, 2024]
Guggenberger, P., Maor, D., Park, M., Simon. P. (2023) “The State of Organizations 2023: Ten shifts transforming organizations” Available at: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-state-of-organizations-2023 [Visited on: July, 2024]
LIT Club, (2023), “Striking the Right Balance: The Dilemma of Balancing Task vs. People Oriented Leadership in Tech Companies” Available at: https://www.linkedin.com/pulse/striking-right-balance-dilemma-balancing-task-vs-people-oriented/ [Visited on: July, 2024]