Feature: Focus on employee well-being in 2024

A recent study by the University of Oxford1 in conjunction with Harvard University found that companies with ‘positive workplace cultures are more likely than their competitors to experience subsequent sales growth, stronger earnings-to-asset ratios, greater profitability, higher market valuations, and more frequent earnings surprises’.

As we enter a new year, the link between a healthy, engaged workforce and a thriving bottom line has never been clearer. Unfortunately, businesses across the country still undervalue employee well-being and are incurring huge costs as a result. Employee absenteeism is said to cost the economy around R12 billion to R16 billion,1with around 15% of the workforce being absent on any given day.

With choppy economic waters ahead, investing in employee well-being in 2024 is poised to be one of the most effective ways to help firms thrive. Here is how you can use it to your benefit:

THE TRUE VALUE OF WELL-BEING

Despite an increasing awareness of the importance of employee well-being, companies often underestimate its real value. Executives have tended to view well-being initiatives as perks, mistakenly considering them separate from the core business strategy or at the very least, categorising them as ‘nice to haves’.

The data, however, paints a very different picture. According to the above University of Oxford study, companies with high well-being ratings outperformed the market by 115,6% from 2009 to 2014 and by 57% between 2009 and 2019. Locally, research done by YuLife, the tech-driven financial services company on a mission to inspire life, found that organisations that are championing employee well-being experienced roughly a 181%3 return on investment, mainly through reduced absenteeism and increased productivity.

The reason for this success is simple: the costs associated with burnout, turnover, and decreased productivity far outweigh the initial investment required to establish comprehensive well-being programmes. It is estimated that up to 25%4 of all employees in South Africa will experience depression or some mental health problem each year, and this can seriously affect profitability. Understanding and making provisions for employee well-being is not just a moral obligation, but a sound business strategy.

A HAPPY WORKFORCE PERFORMS BETTER

Employee well-being promotes performance in several key ways. Employees who feel supported and valued are more productive, engaged, and creative and exhibit higher levels of commitment to their roles within the organisation. This has tangible benefits. A Gallup study found that companies with engaged employees were 21%5 more profitable than their competitors. Unfortunately, South African workplaces exhibit some of the worst6 mental health outcomes in the world. While some may view that as another hurdle for South African businesses, it should be viewed as an opportunity.

South Africa is well positioned to turn this around and become a business environment where wellness is prioritised. The industry is already seeing it in the expansion of various employee assistance programmes. The key is starting with some easy wins and then building from there. If employee wellness is baked into a company culture from the top down, the rewards will follow.

WELLNESS STRATEGIES

Enhancing employee well-being does not require a complete overhaul of corporate structures. Small, intentional changes can make a significant impact. Here are some actionable employee wellness strategies that can get you started:

• Flexible work arrangements − A recent eBook published by YuLife found that 44% of employees want more flexible working arrangements. The results were similar for recruitment. The pandemic has irrevocably changed the way we work and one of the clearest changes is the fact that companies that can offer flexible schedules, remote work options, and compressed workweeks will have a recruitment edge.
• 
  Wellness programmes − YuLife’s research found that 35% of employees want more and better mental health and wellness programmes. By introducing engaging wellness programmes that encompass physical, mental, and emotional well-being, organisations can quickly boost employee health and create positive, supportive work environments.
• Professional development opportunities − Investing in employees’ skills and career growth creates a sense of purpose and accomplishment. Provide training programmes, mentorship opportunities, and avenues for skill development, fostering a culture of continuous learning. This also cuts down on recruitment costs and builds a more committed workforce.
• Open communication channels − The same YuLife study found that most employees prefer to be in organisations with open communication channels. This includes regular check-ins, town hall meetings, and anonymous feedback mechanisms that empower employees to voice their concerns.
• Recognition and rewards − Acknowledge and appreciate employees for their hard work and achievements. Recognition programmes, both formal and informal, go a long way in boosting morale and creating a positive workplace culture.

In 2024, companies that recognise the link between a healthy workforce and a thriving bottom line are better positioned for sustained growth and competitiveness. By embracing employee wellness strategies and fostering a culture of well-being, organisations can create a ripple effect that benefits their staff and the overall success of the organisation. In short, investing in your human capital is the best way to bolster your bottom line.

NOTES

1 Workplace wellbeing and firm performance, Wellbeing2.web.UK.
2 FA News, The true cost of absenteeism in the workplace and how gap cover can prevent it.

3 YuLife, Cost of employee benefits: How to deliver ROI.

4 EAPA SA, The state of mental health in South Africa.

5 Gallup, The right culture: Not just about employee satisfaction.

6 Wits University, Mental health in SA is at shocking levels but people are not seeking help.

Author
Jaco Oosthuizen, Managing Director of YuLife South Africa and co-founder of the YuLife Group