Unpacking the Misalignment between Workplace Well-being Initiatives and Business Strategies
Many businesses today invest in well-being programs with the aim of enhancing employee morale, fostering a stronger company culture, and supporting their teams. However, despite these well-intentioned initiatives, some businesses find that their investments in well-being are not yielding the desired results. This could manifest in employees working late into the night, not taking advantage of unlimited holiday policies, or a decline in overall morale and performance.
According to a Centric HR report from 2022, employee turnover, one of the most costly aspects of people management, can cost businesses anywhere between 16% and 213% of an employee’s salary to replace them. This makes it one of the most expensive problems businesses face, even with well-being initiatives in place.
The Challenge of Aligning Well-being and Business Strategies
Many small and medium-sized enterprises (SMEs) grapple with the fact that their well-being initiatives do not always deliver a return on investment (ROI). When these initiatives are designed in sync with the business strategy, they can reduce absenteeism, increase engagement, and safeguard profits. However, when they are not, businesses end up investing in programs that do not address the issues they were meant to solve, leading to escalating costs.
A study by Deloitte highlights the magnitude of this issue. It found that poor mental health at work costs UK employers approximately £51 billion each year, with nearly half of this sum resulting from presenteeism – a scenario where employees are physically present at work but are too stressed or disengaged to be productive.
The Stress Dilemma and the Dominance of Business Strategy
The business world in the past 5 to 10 years has seen an influx of well-being initiatives. These include flexible working arrangements, mental health days, wellness allowances, and unlimited holidays. However, the challenge arises when well-being initiatives become isolated from the primary objectives of the business.
Understandably, when a business is under financial pressure, the business strategy will always take precedence over well-being initiatives. After all, without a thriving business, there are no jobs to protect. Similarly, the way leaders communicate about well-being often changes under high-stress conditions, potentially coming across as insincere. This can lead to a decline in morale, a loss of trust, and a decrease in motivation, resulting in an increase in presenteeism and high-performing employees considering exit strategies.
Aligning Well-being Initiatives with Business Strategy
To make well-being initiatives work, they must not be an afterthought, but rather an integral part of the business strategy. This involves assessing the pressure points within the company, understanding the human cost of delivering projects, and aligning well-being strategies with the direction of the business.
Asking direct questions such as “What’s putting you under the most pressure right now, and what needs to change?” can provide valuable insights into the challenges faced by employees. Tracking the human cost of projects alongside the financial cost can also help identify where stress points and bottlenecks occur. This allows businesses to address these issues proactively, protecting both performance and profits.
Ultimately, a well-being strategy should align with the business strategy and the capacity of the people it serves. When this happens, it can fuel performance and productivity. If it does not, it risks eroding trust and integrity, leading to the potential loss of valuable talent.
Conclusion
While offering perks like free yoga classes, wellness apps, or unlimited holidays may sound appealing, if the operational aspects of the business lead to employee burnout, these initiatives serve as little more than window dressing. The real challenge lies not in making people feel better, but in building a business that can perform under pressure without breaking the people who run it.
Well-being strategies should be designed to support the business strategy, not conflict with it. They must be realistic, taking into consideration the realities of growth, change, and financial pressure. If a well-being strategy fails to reduce absenteeism, presenteeism, turnover, and disengagement, while improving productivity and execution, it may not be fit for purpose.
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